L 3l.3 /5”3 6, B U L L E T IN N O . 1536

SOUTHWEST MISSOURI STATE

COLLEGE LIBRARY

U. S. DEPOSITORY COPY

DEC 2 8 1966

PROiECTIONS 1970

Interindustry Relationships

Potential Demand 

Employment

J. S. DEPARTMENT OF LABOR ,W. Willard Wirtz, Secretary - bureau of labor statistics, Arthur m. Ross, commissioner

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BULLETIN NO. 1536

PROJECTIONS 1970

Interindustry Relationships

Potential Demand 

Employment

U.S. D E P A R T M E N T OF LABOR W. Willard W i r t z , S e c r e t a r y

BUREAU OF LABOR STATISTICS, Arthur M. Ross, Commissioner

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PREFACE

This bulletin provides projections to 1970 of potential demand,

interindustry relationships, and employment under alternative

assumptions regarding rates and patterns of growth. It represents a

report on a major phase of the work of the Interagency Growth Study

Project.

This project was started several years ago by the U.S. Department

of Labor, in cooperation with other Government agencies and private

research organizations. It represents an effort to develop a more

comprehensive and integrated framework than had previously been available for analyzing the implications of long-term economic growth for a

number of problem areas, particularly problems of manpower utilization.

Guidance for the research program is provided by an interagency

coordinating committee, consisting of representatives from the U. S.

Departments of Labor and Commerce, the Bureau of the Budget, and the

Council of Economic Advisers. The chairman of the corranittee is the

representative of the Council of Economic Advisers.

The actual work on the projections is shared by a number of

Government agencies, private research organizations, and universities.

The central project staff is located in the Bureau of Labor Statistics

(BLS).

The growth project research program uses the input-output tables

prepared by the Office of Business Economics, U.S. Department of

Commerce, as the basic analytical tool for the evaluation of alternative

economic policies and projections. This program has been coordinated

with related work on technological and manpower outlook of the Productivity and Manpower Offices of the Bureau of Labor Statistics.*

*For further information about the related work, see: (1) Technological Trends in Major American Industries (BLS Bulletin 1474, 1966);

and (2) "America’s Industrial and Occupational Manpower Requirements,

1965-1975," prepared for the National Commission on Technology, Automation, and Economic Progress, by the BLS, and published in The Outlook

for Technological Change and Employment, appendix volume I, February

1966, to the Commission’s report, Technology and the American Economy

(1966), pp. 3-187.

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This bulletin was prepared in the Division of Economic Growth,

under the general supervision of Jack Alterman, Director of Economic

Growth Studies. Ronald E. Kutscher, with major assistance by Eva E.

Jacobs, was responsible for coordinating the various elements of the

projections and for direct supervision of the projections in a number

of specific areas. Individual members of the staff had primary responsibility for specific areas as follows: Eva E. Jacobs and Carolyn A.

Jackson, potential gross national product (GNP), 1970 and review of

the productivity projections prepared by the Division of Productivity

Measurement; Donald P. Eldridge, consumer expenditures; Richard P.

Oliver, Federal Government defense expenditures; Myrtle G. Nelson,

Federal Government nondefense expenditures; Arlene K. Shapiro, capital

flow projections and producer durable equipment; Joseph C. Wakefield,

construction, public and private, and State and local government expenditures; Daniel Roxon, exports and imports; William I. Karr, projections

of input-output coefficients.

The projections are based also on the major research contributions

of other units within the Bureau of Labor Statistics, other Government

agencies, private research organizations, universities, and individuals.

The contributors include various offices of the BLS (Productivity,

Technology and Growth; and Manpower and Employment Statistics); U. S.

Department of Commerce, Office of Business Economics; U.S. Department

of Agriculture; U.S. Department of Interior, Bureau of Mines; Harvard

Economic Research Project, Harvard University; National Planning Association; George Washington University; Council of State Governments;

and Jack Faucett Associates (Silver Spring, Maryland).

The use of the material developed by others will be noted at the

appropriate places in the bulletin. In addition to providing materials

for this publication, the staff of the Office of Business Economics

assisted in many aspects of the research program. Comments on an

earlier draft by members of the Business and Labor Research Advisory

Councils of BLS, and individuals in private research organizations,

universities, and other Government agencies were helpful in the

preparation of this report. However, BLS assumes responsibility for

the interpretation of the data and the projections.

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CONTENTS

Introduction.................................................... 1

Summary......................................................... 7

Chapter:

I. The framework for the projections...................... 13

II* Potential output in 1970............................... 22

III. Distribution of potential output among major categories

of final demand....................................... 29

IV. Detailed final demand "bill of goods"................... 37

V. The interindustry employment table...................... 85

VI. Patterns of employment, 1970................... 110

Bibliography.................................................... 128

Appendix........................................................ 132

Page

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CONTENTS--Continued

Tables:

Labor force, employment, annual hours and gross national product:

II-l. Actual 1957 and 1965 and potential 1970............... 28

Gross national product:

III-l. Major components, selected years and projected 1970.... 35

III-2. Changes by major component, selected periods and

projected 1965-70.................................... 36

Industry numbering system:

IV-1. 1958 input-output study................................ 58

Industrial composition of purchases, 1958, 1962, and

projected 1970. 1958 dollars:

IV-2. Federal Government................................... 59

IV-3. Federal Government, percent distribution.............. 61

IV-4. State and local government............................. 63

IV-5. State and local government, percent distribution....... 65

IV-6. Private fixed capital investment....................... 67

IV-7. Private fixed capital investment, percent distribution. 69

IV-8. Gross private domestic investment.................... 71

IV-9. Personal consumption expenditures.................... 73

Personal consumption expenditures:

IV-10. Major type, selected years and projected 1970......... 75

Industrial composition of purchases, 1958, 1962, and

projected 1970. 1958 dollars:

IV-11. Personal consumption expenditures, percent

distribution.. ........................................ 76

IV-12. Net exports........................................... 78

IV-13. Total final demand.................................... 80

IV-14. Total final demand, percent distribution.............. 82

IV- 15. Total final demand,by major industry group........... 84

Index of coefficient change:

V- l. 1958-70............................................... 103

Total employment:

V- 2. Primary and indirect per billion dollars delivery to

final demand, 1970. Summary table................... 105

Civilian employment:

VI- 1. Major industry groups, selected years and

projected 1970....................................... 120

VI-2. Change by major industry groups, selected periods

and projected 1970................................... 121

VI-3. ISP industry, selected years and projected 1970....... 122

VI-4. ISP industry, selected years and projected 1970,

percent distribution................................. 124

VI-5. ISP industry, 1965-70, average annual rate of change... 126

Page

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CONTENTS--Continued

Appendix tables:

Page

A-l. Gross national product, by major component, 1950-65... 132

A-2. Personal consumption expenditure, by major type,

1950-65............................................. 134

A-3. Total employment (primary and indirect) per billion

dollars delivery to final demand, 1970.............. 136

Wage and salary employment by ISP:

A-4. Selected years and projected 1970..................... 152

A-5. Selected years and projected 1970, percent

distribution........................................ 154

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Projections of Potential Demand,

Interindustry Relationships, and Employment, 1970

INTRODUCTION

This study provides projections of industry employment requirements

in 1970 under alternative assumptions about the rate and pattern of

growth. The employment projections are essential to the development of

estimates of occupational requirements, information that is needed to

implement the U.S. Department of Labor's responsibilities in the areas

of occupational guidance and longer run training programs.

The 1970 Projections

The projections contained in this report are not forecasts. They

provide detailed and consistent projections of what the economy may look

like in 1970. These projections are dependent on assumptions about unemployment rates, growth in productivity, the mix of consumption, investment, government expenditures, and other key economic variables. A

crucial assumption underlying the projections is that the Viet Nam situation will have been resolved by 1970 and defense expenditures reduced

to a more normal level.

The bulletin contains four sets of projections. The major differences among these projections result from use of alternative assumptions

about unemployment (4 and 3 percent of the civilian labor force) and

about the composition of final demand (i.e., consumption, investment,

government expenditures for goods and services, and net exports).

The various sets of projections are designed to evaluate, among

other things, the extent to which the composition of employment may be

affected by alternative assumptions regarding the continuation of the

unusually high rates of increase in expenditures for consumer durables

and for business investment in plant and equipment during the past few

years.

The basic 4- and 3-percent unemployment models assume that, by 1970,

expenditures for consumer and producer durable goods will return to a

pattern in line with postwar relationships. An alternative (high

durables) to the basic 4-percent unemployment model assumes that the

increase in expenditures for durable goods would continue at high rates.

Although this rate of increase for durable goods is lower than in the

preceding few years, it would still be higher than the rate that generally prevailed during the postwar period. An additional alternative

(high services) to the 4-percent unemployment model assumes that, due to

increased productivity of capital, capital expenditures will continue to

increase, but at a lower rate than the increase in real output, with the

result that capital expenditures for nonresidential plant and equipment

will fall as a proportion of gross national product. It also assumes

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that the anticipated increases in residential construction postulated in

the basic models will be delayed somewhat and will increase only moderately by 1970. The slower increase in private domestic investment in

the high services model is assumed to be offset by larger increases in

consumer expenditures, primarily in consumer services, and increased

State and local government expenditures for education and health functions .

The projections are developed in a series of interrelated stages in

which the starting point is the projection of potential output in 1970,

based on estimated growth in the labor force, alternative assumptions

regarding the unemployment rate, and projections of labor productivity

and hours of work.

The distribution of total employment among the various industries

in the economy is, in turn, based on projections of how potential output

may be distributed among the various categories and detailed components

of final demand, i.e., consumption, investment, government expenditures

for goods and services, and net exports. Estimates of final demand for

detailed items, such as food, clothing, automobiles, medical care,

machine tools, aircraft, etc., are converted into industry employment

requirements through the use of an interindustry employment table. An

interindustry employment table shows how much direct and indirect employment would be required in each industry to meet the demand for final

goods and services, including employment in the supporting industries

which provide the raw materials, parts, components, fuel, transportation

and distribution services embodied in the end products and services.

An interindustry employment table is derived from an input-output

table which shows the direct and indirect impact of changes in one part

of the economy on the rest of the economy. The projections developed in

this study use input-output tables prepared by the Office of Business

Economics, U.S. Department of Commerce, as the framework for the

estimates.

Although the projections developed in this study represent a major

phase of the work of the Interagency Growth Study Project, they should

be considered as part of a broader framework of growth studies. To put

the present bulletin in perspective, it may be useful to outline some of

the major elements involved in the study of the complex process of economic growth and indicate some of the areas which need additional work.

Economic Growth Studies in Perspective

The study of economic growth includes (though neither exhaustively

nor exclusively) the following elements:

1. The supply side (economic potential). Potential gross national

product (GNP) is defined as that GNP which could be produced by

a fully employed labor force. In addition to full employment,

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potential GNP depends, in the first instance, upon (a) the size

of the labor force, (b) the average hours worked per year, and

(c) the average output per man-hour. The growth in potential

GNP, therefore, depends upon the growth in these separate components .

A number of complicated relationships is basic to each of these.

For example, the rate of growth of the labor force depends not

only upon the rate of growth of the working-age population, but

also upon changes in labor force participation; these, in turn,

are subject to a number of influences, such as the age-sex mix of

the working-age population, the unemployment rate, the sectoral

composition of output, sociological and institutional factors.

Similarly, changes in the workweek depend upon such factors as

changes in the unemployment rate and the speed of adjustment

of employment to changes in output. Determination of the rate

of growth of output per man-hour is perhaps the most complex of

all. It depends upon (a) the change in the skills of the labor

force as determined by educational achievement, manpower training, etc., (b) changes in the size and age distribution of the

capital stock, (c) the rate of utilization of capacity, (d) the

distribution of output among industries, (e) the state of technology, and many other factors.

2. The demand side. It is true that the growth of potential GNP

is itself sufficient to determine the rate of growth in output

along a full-employment path. However, it is nevertheless

generally believed that there exists an interaction between

actual and potential growth. It is likely that the rate of

growth of potential GNP is itself retarded by persistent underutilization of productive resources. Idle resources--both

manpower and plant capacity--tend to dampen the incentive to

invest. Low rates of investment, in turn, retard the rate of

growth of potential GNP.

3. The pattern of final demand. For any given level of national

output, the following factors determine the pattern of final

demand:

a. There is first the broad distribution of final demand among

the general categories of consumer expenditures for goods

and services, government purchases, business investment,

and net exports. This distribution, in turn, depends upon

(1) the allocation of personal income between consumption

and savings, (2) the profitability of investment, as determined by the state of technology, the utilization of existing capacity, rate of growth, etc., and (3) government

policy. Government policy affects the above distribution

through the impact of fiscal and monetary policies on

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private investment and consumption decisions, and through

direct government investment to fulfill social objectives

and to meet defense requirements. Net exports depend on

relative prices here and abroad, need for critical materials, constraints affecting the balance of payments, etc.

b. Given aggregate consumer demand, the pattern of demand for

individual goods and services depends upon consumption

patterns of individuals and families and the distribution

of income and change in income among individuals and families, relative prices, etc.

c. The distribution of aggregate investment demand among types

of equipment and buildings depends upon a host of factors

such as the relative profitability of various industries;

the introduction of technological developments; relative

growth rates of industries; and the types of equipment and

structures used by different industries.

4. The pattern of intermediate demand. Given any pattern of final

demand, it is possible to derive the interindustry structure of

output--including both final and intermediate goods--using the

input-output tables. These tables show the sales and purchases

among all the industries in the economy and can be used to show

the direct and indirect impact of changes in demand in one part

of the economy on the rest of the economy.

5. The impact of the pattern of final and intermediate demand.

Projected changes in the interindustry structure of output, as

determined by the pattern of final and intermediate demand,

have a number of important implications for the growth process

and for the formulation of economic policy:

a. In the first place, the rate of growth of productivity for

the entire economy is affected by the changing distribution

of output among sectors and industries. For example, the

secular decline in the farm sector, relative to the nonfarm

sector, has in the past added to the rate of growth of total

private productivity because the level of output per manhour in the farm sector is approximately half the level in

the nonfarm sector. Conversely, the shift in the distribution of output from the manufacturing sector to the service

sector and to government tends to lower the rate of growth

of productivity.

b. The distribution of output between investment goods and consumer goods has important implications for the rate of growth

of potential GNP.

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c. The pattern of final and intermediate demand also has

important implications for the distribution of payments to

labor, property, and government, and among income groups.

d. The pattern of employment, and therefore the occupational

requirements, of the future depends upon the interindustry

structure of output.

6. The role of government policy in the growth process. A crucial

determinant of the rate of growth of GNP and of the changing

pattern of output is government policy, for these reasons:

a. The role of fiscal policy in equating aggregate supply and

demand at full employment is essential to the growth

process.

b. Government policies on investment significantly affect economic growth, since investment in plant and equipment is

the process by which new productive capacity is brought

about, and by which productivity of labor is enhanced.

c. Finally, the rate of growth of labor productivity is closely

related to educational expenditures and to manpower training

programs. Conversely, the form and direction which training

and educational programs should take depends upon the projection of the pattern of final and intermediate demand,

industry employment, and occupational patterns.

The present study is based on extensive research and analysis covering a number of areas included in the foregoing discussion. These relate

primarily to the projection of potential output, the distribution of output among the major components and detailed items of final demand, and

the conversion of demand into employment requirements through the use of

the input-output approach. Other areas of research have been sponsored

by the Interagency Growth Study Project, but are not included in this

bulletin. Moreover, some of the areas have been covered only partially

or not at all.

Finally, as part of the continuing program of growth studies, the

projections contained in this bulletin will be revised and extended as

new information, revisions in the historical data, and the results of

studies sponsored by the Growth Project become available. This should

also make it possible to explore the implications for the economy of a

broader range of assumptions regarding rates and patterns of growth.

As part of an evolving research program, the various specialized

studies of economic growth will need to be integrated into a broader

and consistent framework in which additional elements are taken into

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account. For example, more attention will have to be given to the relationship between:

(1) changes in technical input-output relationships and changes

in labor and capital productivity and occupational patterns,

(2) the rate of investment and the rate of growth of potential

GNP,

(3) changes in skills and education of the labor force and growth

in labor productivity,

(4) government fiscal and monetary policies and the rate of growth

of GNP and its distribution,

(5) government policies and programs and projected government and

private employment, and

(6) the pattern of demand, employment, and the distribution of

income among factor shares and among income groups.

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SUMMARY

A major objective of this study is to develop projections of the

industrial distribution of employment in 1970 under alternative assumptions regarding rates and patterns of growth.

The projections, developed in a series of interrelated stages, use

the latest input-output tables prepared by the U.S. Department of Commerce as the framework for the estimates. These tables make it possible

to show the direct and indirect impact of changes in demand in one part

of the economy on all parts of the economy, including itself. In this

study, projections of input-output relationships, along with projections

of hours of work and industry productivity, are used to link detailed

projections of demand for goods and services to employment requirements

by industry. Thus, the projected structure of demand--the demand of

individuals, business, and government, and the net demand of foreign

purchasers of the products of American industry--are converted, by application of appropriate relationships, into projections of direct and indirect manpower requirements of the specific industries.

A broad range of projections can be developed, based on alternative

assumptions regarding rates and patterns of growth. These preliminary

efforts, however, present four sets of estimates--all based on the

assumption of high levels of employment and a stable economic growth

rate. The four models are (a) a 4-percent unemployment model, (b) a 3-

percent unemployment model, (c) a high durables model, and (d) a high

services model. The latter two are variations of the basic 4-percent

unemployment model.

The 4-percent unemployment model assumes that by 1970, the economy

will continue to expand sufficiently to maintain the unemployment rate

at 4 percent of the civilian labor force. This means that the number of

new jobs will be sufficient to accomodate the anticipated growth in the

labor force and to offset gains in productivity. The 3-percent unemployment model assumes that the unemployment rate is reduced to 3 percent

and maintained at that rate through 1970. It assumes further expansion

in programs designed to provide training and retraining, worker experience, labor mobility, and employment in public service projects. Most

of the increased employment, however, is expected to be in the private

sector of the economy. The patterns of final demand in both the basic

4- and 3-percent models are similar.

The other two models (high durables and high services) assume a

4-percent unemployment rate. They are designed to evaluate the implications of alternative assumptions regarding one of the major uncertainties

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in the projections of final demand--the outlook for consumer durable

expenditures and private investment in plant and equipment, given their

unusually high rates of increase during the past 2 years.

Projected Growth Rates and Potential GNP

Between 1965 and 1970, the labor force is expected to grow at a

much more rapid pace than over most of the postwar years--almost 2 percent a year, compared with the postwar average increase of 1.3 percent.

The "normal" increase in the labor force would account for 1.7 percent a

year; an additional 0.2 percent a year may be anticipated because the

labor force participation rates at the present time are below the trend

rates.

Given the anticipated acceleration in the growth of the labor force

and assuming increases in productivity of 3.2 percent a year and modest

declines in hours of work, GNP would have to grow by about 4.3 percent a

year between 1965 and 1970 to provide jobs for additional workers and to

maintain the unemployment rate at 4 percent.

It would take a growth rate of about 4.5 percent a year for the remainder of the decade to reduce the unemployment rate to 3 percent. The

4.5-percent growth rate is lower than the 5.5-percent annual average increase during the past 2 years, but it is still much higher than the

3.7-percent annual growth rate experienced over the entire period since

1947. This rate of growth would imply an increase of almost 25 percent

in the Nation's real output by 1970.

Potential GNP in 1970 would be about $835 or $845 billion (in 1965

prices),_1 / depending on the unemployment assumption.

The 4.3- to 4.5-percent annual increases in GNP are averages for

the remainder of the decade. Part of the increase is related to the reduction in the unemployment rate, thus the projections imply a somewhat

higher growth rate until the 4- or 3-percent unemployment rate has been

achieved. Once achieved, the continuing growth rate would be closer to

4 percent. This is still higher than the postwar average and provides

some indication of the task involved if the national policy of maintaining full employment is to be realized. If it is assumed that the remain

der of the decade will see an acceleration in the overall rate of produc

tivity, compared with the longer run trend, even higher rates of growth

required to achieve and maintain full employment are implied.

1/ $750 and $760 billion, respectively, in 1958 dollars.

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Projected Industry Employment Requirements

In order to achieve an overall unemployment rate of 4 percent by

1970, total civilian employment would have to be about 81.6 million, representing an addition of about 1.5 million jobs a year for a total of

7.5 million more jobs in 1970 than in 1965.2/ A 3-percent unemployment

rate for 1970 would require an addition of about 1.7 million jobs a year

or a total of 8.5 million, bringing total civilian employment to 82.8

million in 1970. This represents an increase in employment of about 1.9

percent a year for a 4 -percent unemployment rate, or about 2.2 percent a

year for a 3-percent unemployment rate. Both the 1.9 and 2.2 rates of

employment increase are substantially higher than the rates for most of

the postwar period. The higher rates of increase are attributable primarily to accelerated growth in the labor force as the children born

during the early post-World War II years reach working age. Adding to

the increase in employment is the assumed reduction in the unemployment

rate from the 4.6-percent average in 1965 to 4 or 3 percent by 1970.

Within the overall employment increases projected to 1970, the projections for individual industries show highly divergent trends for any

one model, as well as variations among the alternative models. In general, service industries are expected to show higher gains in employment

than goods-producing industries. This represents a continuation of the

long-run postwar trends, but there are some important modifications.

Among the service industries, the highest annual rate of employment

increase, about 5 percent or more, is projected for State and local government. Growth in this sector would be attributable to the continued

expansion of schools, medical care, and other public services for a

growing population, with some stimulus from Federal grants. In contrast,

Federal Government civilian employment is projected to increase only

moderately from the 1965 level.

Many of the Federal Government programs which may be expanded substantially by 1970 involve expenditures which are considered, in the

national income and product accounts, as either transfers of funds to

individuals and nonprofit organizations or grants to State and local governments. Examples of such programs are aid to education, training and

retraining, and antipoverty programs, Medicare, and area development.

From the viewpoint of demand for final goods and services, expenditures

resulting from these programs appear as purchases of goods and services

by consumers and State and local governments rather than as purchases

2/ The employment estimates cover wage and salary workers on establishment payrolls, self-employed, unpaid family workers, and domestics.

The estimates refer to number of jobs and are, therefore, higher than the

number of persons employed as measured in labor force surveys. This is

due to dual jobholding and statistical differences between the two series.

239-877 0 - 66-2

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by the Federal Government. A further caution about Federal Government

projections concerns the assumption that there will be no military engagement in Viet Nam or elsewhere in 1970.

The projection of employment in personal, business, and private edu

cational and medical services shows the next largest increase--about

2.7 to 4.2 percent a year, depending on the models used. The high rates

of increase would reflect the continuing shift in demand for such services and the lower than average increases in productivity (as commonly

measured) in the individual industries providing these services.

Employment in finance, insurance, and real estate is projected to

continue to increase at a faster rate than the overall average and to

account for a somewhat larger share of total employment in 1970 than in

1965. Under the high durable alternative, however, its share would remain about the same.

Communications and public utilities are characterized by rapid increases in productivity. The result is that, although services provided

by these industries are expected to increase sharply, employment would

remain at about the 1965 level and decline as a proportion of total

employment.

Employment in the trade sector is dependent, to a considerable extent, on activity in the goods-producing areas. The projections of employment in trade vary, depending on the relative importance of goods

production in the various models. Productivity gains in trade are lower

than the average for the total private economy. Consequently, the employment increases (1.6-2.1 percent a year) would be above the rate for

the private economy and about the average for total employment in the

basic model. They are somewhat higher in the high durable alternative

and lower in the high service model. The increase is one of the largest

among the various sectors because the trade sector accounts for such a

large proportion of total employment. In fact, in terms of absolute

numbers, trade and two other major sectors--State and local government

and services (business, professional, private educational and medical,

and personal) accounted for about 45 percent of total employment in 1965

In the aggregate they would be the source of about 72 to 82 percent of

the total employment increase projected.

Total transportation employment has been declining during much of

the postwar period, primarily due to the reduction in railroad employment. Employment has increased within the past few years, largely in

trucking and air transportation. Although productivity gains in transportation are above average, the increase in demand is projected to be

sufficient to provide the basis for continued small gains in employment.

The increase, however, would not be enough to arrest the continuing decline in the sector's share of total employment.

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Within the goods-producing sectors, agricultural employment is projected to continue its long-term decline, both in absolute numbers and

as a percentage of the total work force. The decline would be due primarily to very high rates of increase in agricultural productivity

(about 5.5 percent a year), with only moderate increases in the demand

for farm products. In line with the long-term shift in the composition

of the agricultural work force, most of the decline is projected to be

among the self-employed and unpaid family workers, with the numbers of

wage and salary employees remaining relatively stable.

Mining employment, until recently, had been declining for many

years. This is attributable largely to substantially better-than-average

gains in productivity and relative declines in the demand for coal--one

of the larger mining industries. Employment in mining is projected to

continue to decline, although at a reduced rate.

Contract construction employment is projected to show the largest

percentage increase of any major goods-producing industry. This would

be due to projected increases in construction activity to meet rising

State and local government needs, increased housing requirements, and

expanding business investment in plants. In addition, productivity

gains in construction (as measured conventionally) are lower than the

average for the economy. The combined effect of these two factors

would be a very substantial increase in construction employment by 1970.

Finally, what are the prospects for increased employment in manufacturing industries? One of the most important developments in the

economy during the past 2 years has been the dramatic increase in manufacturing employment--the major source of blue-collar employment--coming

after a period of decline in manufacturing employment and a modest recovery following the recession of 1961.

Recent increases in factory jobs reflect both expansion in aggregate demand and special factors affecting the character of this demand,

notably the very large increases in demand for automobiles and other

consumer durables and the unprecedented growth in capital investment.

Expenditures for consumer and producer durables have increased, on the

average, twice as fast as the increase in real output during the past

few years. A return to more sustainable rates of increase in expenditures for these categories of final demand would have obvious implications for employment requirements in manufacturing industries. The

range of projections of manufacturing employment in the alternative

models indicates that there is some prospect for increased growth in

factory jobs of about 0.5 percent a year between 1965 and 1970 even

under the lowest estimate. The high durables set of projections implies

an increase of about 1.2 percent a year. (The 3-percent unemployment

model, roughly adjusted to reflect a high durable goods alternative,

would show an even higher rate of increase--about 1.5 percent a year.)

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The projected increase in manufacturing employment represents a

reversal of the 1957-63 experience when manufacturing employment showed

no increase over the period. It should be noted, however, that the projected rate of increase in employment in manufacturing, even at the

upper end of the range of estimates, would still be substantially lower

than that for the economy as a whole. The projections also represent a

slowdown from the more recent gains in manufacturing employment in 1965

and early 1966. The basic models imply even smaller increases in manufacturing employment between 1965 and 1970. Under all the alternatives,

manufacturing would continue to decline as a proportion of total employment, from 25.9 percent of the total in 1957, to 24.8 percent in 1965

and to 23.1-23.9 percent by 1970.

A major qualification needs to be made regarding these projections.

Expansion 6f defense expenditures, if the Viet Nam buildup continues,

will involve increased employment in defense oriented manufacturing industries and their supplying industries. The projections developed by

BLS assume that by 1970, the Viet Nam conflict will have been resolved

and defense expenditures reduced to a more normal level. During the

period of the buildup, manufacturing employment may exceed the projected

employment in a number of industries.

A resolution of the Viet Nam situation and a return to more sustainable rates of increase in the demand for durable goods would imply

substantial reductions in employment in some industries, particularly

defense oriented industries. This still leaves room for growth in employment for a number of industries under the high durables alternative--furniture, paper, printing and publishing, chemicals, computers,

and selected metal fabricating and machinery industries. However, the

projections indicate little increase or even reductions from mid-1966

levels for two of the basic industries--automobiles and steel.

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Chapter I* The Framework for the Projections

By 1970, the labor force is expected to grow to about 86 million

persons, or about 7.5 million more than in 1965. If the economy in 1970

will provide employment for all except 4 or 3 percent of the civilian

labor force, these questions arise:

1. How might the industrial distribution of employment in 1970

differ from the present distribution?

2. To what extent do the implied growth rates of employment

among the various industries represent continuation of past

trends or modification of these trends?

3. More specifically, will there be a return to the experience

of the 1957-63 period, when there was little or no employment increase in manufacturing and construction--the prime

source of blue-collar employment?

4. To what extent are the projected results affected by different assumptions regarding continuation of the recent

sharp increases in expenditures for consumer and investment durable goods?

This report attempts to provide some tentative answers to these and

related questions. It does this by developing detailed projections of

the demand for goods and services, under various assumptions regarding

unemployment rates, potential output, and patterns of expenditures in

1970. The report then traces the impact of these expenditures on industry employment, based on interindustry (input-output) relationships

projected to 1970.

The projections are developed in a series of interrelated stages in

which the first two stages provide the broad framework. The remaining

stages fill in the detailed components of final demand, which are then

converted into industry employment.

The objective of the first stage is the projection of potential

national output (real GNP) in 1970, consistent with low rates of unemployment. Estimates of potential real output are based on separate

projections of the labor force, employment, hours of work, and productivity (output per man-hour).

The second stage is concerned with how the real GNP is distributed

among the major categories of final demand. These categories include

personal consumption expenditures, private domestic investment for plant

and equipment, residential construction, net inventory change, Federal

and State and local government expenditures for goods and services, and

net exports.

13

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The third stage involves the distribution of the major components of

the major components of final demand into detailed items such as food,

clothing, automobiles, television sets, medical care, rent, machine tools

highway construction, etc. If the detailed estimates of consumer demand,

investment demand, government demand, etc., are added together industryby-industry, we obtain the aggregate final demand for the products of

each industry in 1970. For some industries (e.g., apparel, footwear,

household appliances, farm machinery), the 1970 demand of final purchasers will represent the major portion of total output of the industry.

For other industries (among them, primary iron and steel manufacturing,

coal mining, lumber and wood products, transportation), the demand of

final purchasers will constitute only a small part of total output. Such

industries produce goods and services primarily for further processing

and intermediate use, not for final demand. Some method is required to

estimate the output of raw materials and intermediate goods and services

required to satisfy the demand for end products and services.

Final demand for passenger cars, for example, implies a demand for

materials such as steel, aluminum, glass, tires, upholstery, and related

transportation and distributive services. Similarly, demand for apparel

implies output requirements from the textile industry. The textile indus

try, in turn, generates demand for cotton and wool from the agricultural

sector of the economy and synthetic materials from the chemicals sector.

Given sufficient information on the material and service requirements for each of the different final products, it would be possible to

derive the direct and indirect output requirements implied by a given

level of demand for final goods and services. The basis for such computations is provided by a study of interindustry (input-output) relationships.

There is a long history of work in the United States and in other

countries on input-output tables and analyses. The results of this work

are not nearly as well known as the national income and product accounts

and their related analyses. For readers who are not familiar with inputoutput analysis, it may be useful, therefore, to indicate briefly what

it is and how it may be used to bridge the gap between demand for end

products and the direct and indirect industry output required to produce

these products; including output at the earlier stages of production,

transportation, and distribution.

The development of the input-output tool of economic analysis and

the actual construction of the first input-output tables were the work

of Professor Wassily Leontief of Harvard University. Recognizing the

potential of using input-output tables as a tool for manpower analysis,

staff of BLS, under the guidance of W. Duane Evans, worked with

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Professor Leontief 3/ to develop an input-output table for 1939. This

subsequently was used as a framework for analyzing patterns of industry

employment, production, and industrial capacity in the post-World War II

economy.

That major study, "Full Employment Patterns, 1950," prepared by

W. Duane Evans, Marvin Hoffenberg, and Jerome Cornfield, was published

in 1947 in the February and March issues of the Monthly Labor Review.

In subsequent years, the Bureau developed a detailed input-output table

for 1947.4/ Although major research in this area was sharply curtailed

in 1953, the Bureau has continued to use this approach in its studies of

direct and indirect employment generated by various types of construction and also in its studies of the employment impact of foreign trade.5/

In 1960, work on a new input-output table was started, based on the

voluminous Censuses of Manufacturing, Mining, and Trade for the year 1958

The work on the new table was centered in the Office of Business Economics to ensure that it would be developed as part of an integrated set of

GNP, national income, and input-output accounts. This effort resulted

in the development of a new input-output table and revisions in the GNP

and national income estimates so as to be consistent, both conceptually

and statistically, with the input-output table for 1958. The results of

this work were published in 1964 and 1965. 6/

Wassily Leontief, The Structure of the American Economy, 1919-

1939 (Oxford University Press, New York), Second Edition, 1951.

4/ W. Duane Evans and Marvin Hoffenberg, "The Interindustry Relations Study for 1947," The Review of Economics and Statistics, May 1952,

pp. 97-142; also, National Bureau of Economic Research, Input-Output

Analysis: An Appraisal, Studies in Income and Wealth, Vol. 18 (New York,

1955).

5J Claiborne M. Ball, "Employment Effects of Construction Expenditures," Monthly Labor Review, February 1965, pp. 154-158; also, Eva E.

Jacobs and Ronald E. Kutscher, Domestic Employment Attributable to U.S,

Exports, 1960 (BLS, January 1962), summarized in Monthly Labor Review,

March 1962, pp. 277-279; and The Relationship Between Imports and

Employment (BLS, April 1962), summarized in Monthly Labor Review, July

1962, pp. 771-773.

6/ Morris R. Goldman, Martin L. Marimont, and Beatrice N. Vaccara,

"The Interindustry Structure of the United States, A Report on the 1958

Input-Output Study," Survey of Current Business, November 1964, pp. 10-29

Also, National Economics Division staff, "The Transactions Table of the

1958 Input-Output Study and Revised Direct and Total Requirements Data,"

Survey of Current Business, September 1965, pp. 35-56. The revised and

benchmarked national income and product estimates consistent with the

1958 input-output table are described in an article by staff of the

Office of Business Economics, "The National Income and Product Accounts

of the United States, Revised Estimates, 1929-1964," Survey of Current

Business, August 1965, pp. 6-56.

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In anticipation of the new table of interindustry relationships,

the Interagency Growth Study Project started work several years ago on

the use of the input-output and related accounts as the framework for

developing projections of the economy in considerable industry detail

under alternative assumptions regarding rates and patterns of growth.

What is an input-output table and how does it provide the basis for

converting estimates of final demand into impact on industry output and

employment?

An input-output transactions table is like a giant checkerboard, in

that every entry in the table can be read two ways. Reading across the

rows shows what each industry sells to every industry in the economy,

including itself, as well as to final demand, i.e., consumption investment, government expenditures, and net exports. Reading down the

columns of the input-output table shows what each industry buys from

every industry, including itself, in order to produce its own output.

The table also shows, at the bottom of the columns, the value added 7/

by the industry. The sum of the individual purchases from other industries and itself, plus the "value added" equals the value of production.

It is the information in the columns on purchases of specific materials,

parts, fuels, business services, etc., which is used as the basis for

deriving the input-output ratios.

An input-output transactions table, when converted into ratio form,

shows, for example, how much the automobile industry must buy from the

steel, aluminum, glass, textile, rubber, plastics, transportation and

trade industries in order to produce a dollar's worth of output. If we

are interested in determining what effect increased automobile demand

would have, not only on the automobile industry but on all its supplying industries, the input-output ratios or direct "coefficient" can be

used to measure the impact on all the immediate supplying industries.

Each of these industries, however, has its own supplying industries.

The steel industry, for example, needs coal and iron ore to make steel.

The coal and iron ore industries, in turn, need fuel to run the powerful

machines used in mining and repair parts for equipment. By linking all

the input-output coefficients together in a consistent and integrated

set of relationships, it becomes possible to trace the impact of the

initial demand for automobiles on each industry back along the production process. This covers raw materials, parts, components, fuels, and

transportation and distributive services which are ultimately involved

in making the final product--the automobile.

7/ "Value added" consists of labor compensation, proprietors'

income, profits, interest, depreciation, and indirect business taxes.

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It is the table of direct and indirect interindustry relationships

(table 3 of the 1958 Interindustry Study) which is used as the framework

for exploring the implications of alternative assumptions regarding

rates and patterns of growth on the industrial composition of employment

in 1970. The concepts, special definitions, and classification system

of the input-output table are described in the article on the 1958

input-output study published in the Survey of Current Business

(November 1964).8/ The detailed description need not be repeated here.

There are, however, a few major aspects of the input-output study which

need to be mentioned so that the form and detail in which the projections are developed can be better understood.

Classification system. The 1958 input-output table classifies all

productive activities in the economy into 86 industries. In addition,

there are a number of categories representing final demand and one composite category representing value added. Each of the producing industries may cover a broad range of products and services. Most of the

producing industries are combinations of detailed industries, as defined

in the Standard Industrial Classification Manual (SIC), 1957 edition,

prepared by the Bureau of the Busget. The SIC coverage of the 1958

interindustry classification system is given in table IV-1.

The detailed projections of final demand are also classified by pro

ducing industry, in order to be consistent with the classification used

in the input-output table. This means, for example, that a projection

of consumer demand for food is further distributed to show how much of

the total will be from the farm industries (e.g., eggs from industry 1,

fresh fruit and vegetables from industry 2, or bread and meat from the

food processing industry, industry 14). Purchases of "shoes" are distributed between leather shoes made in industry 34 and shoes, boots, and

sneakers made in industry 32, rubber and miscellaneous plastics products

Trade. The input-output tables do not trace actual flows to and

from the trade industry. If trade were shown as a buying and selling

activity, the detailed connections would be between trade and the producing industries, while the consuming industries would purchase most

of their inputs from a single source--trade. To show the links between

producing and consuming industries, or final markets, commodities are

shown as if moving directly from producer to user, bypassing trade.

Therefore, the output of trade is measured only in terms of total

margins; that is, operating expense plus profit.

Valuation of transactions. Input-output relationships can be

expressed, in concept, in either producers* value of purchasers* value.

Specifically, the inputs for making an automobile can be related to the

price received by the producer or to the price paid by the purchaser.

In the input-output tables, the valuation is at producers* value.

8/Morris R. Goldman, Martin L. Marimont, and Beatrice N. Vaccara,

op. cit.

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Under a system using producers* valuation, the individual inputs

into a consuming industry are valued at producers' prices. The trade

margins and transportation costs associated with all of these inputs

appear as direct purchases from the trade and transportation industries,

respectively. On consequence of using the producers' valuation of transactions as the basis for deriving output is that the generated output

includes only requirements at earlier stages of the production process;

it does not cumulate forward to cover the transportation and trade

activity required to move the product of a given industry on to the next

stage of production or to final demand.

In using the input-output table to convert estimates of final demand

(usually stated in purchasers' value) into output requirements, additional information is needed on the margins for transportation and trade.

These values can then be deducted from purchasers value to derive the

appropriate producers' value. A final demand "bill of goods," therefore,

consists of expenditures for specific goods and services, valued at producers' prices, plus separate purchases from the transportation and

trade industries for the services involved in getting the product from

producer to purchaser. Information on trade and transportation margins

associated with each transaction was developed as part of the 1958

Interindustry Study. This information is used to convert the final

demand expenditures for goods and services, initially estimated in purchasers' value, into producers' value.

Secondary product transfers. A final demand "bill of goods" shows

the demand for end items, classified by specific groups of products or

services. However, a product may be made in an industry where it represents the principal proportion of the industry's output; or it may be

made as a "secondary" product in some other industry. For example,

synthetic resins are made in both industry 28, plastics and synthetic

materials and industry 27, chemicals and selected chemical products. In

the input-output table, to avoid the problem of splitting the demand for

synthetic resins between the two producing industries, the interindustry

study adopts the convention of transferring the synthetic resins products

produced in the chemical industry to industry 28. Thus, the latter

industry meets the entire demand for synthetic resins from the total

supply, wherever produced. This approach implies that the "bill of goods"

in the input-output system classifies specific items of final demand by

the industries producing the items as primary products. The primary

industries will, in turn, generate demand for these items in the industries where they are produced as secondary products. In this way, the

output generated by the demand for a product or service covers the

industries where the actual production takes place, both in the "primary"

industry and also in the industry where the product is a secondary

product.

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This approach of transferring products, wherever made, to a single

industry is based on the assumption of fictitious sales to the primary

producing industry. It is used in a number of areas in the input-output

table. This approach permits the demand for products or services to be

distributed back to the original producing industries in the proportion

that they contributed to the supply.

However, in some industries where secondary production is large and

considerably different from the primary output, such as automobile repair

performed in automobile dealer establishments, the industries involved

are redefined. To accomplish this redefinition, the secondary products

and their associated inputs are taken out of the producing industries

and assigned to the primary industry.

Imports. Imports used for production (intermediate goods and services) which can be substituted for domestically produced goods and services are treated in a parallel manner to secondary products. These

imports are assigned to the industry producing the domestic equivalent

as an addition to output and a purchase from imports. This approach

results in demand for a product (for example, steel) being met in part

by domestic production and in part by imports.

Imports used in production which have no domestic counterparts and

imports purchased by final demand in substantially the same form in which

they are imported are shown as purchased directly by the consuming industry or final market.

Consistency with base year prices. The basic input-output table is

for the year 1958 and reflects the 1958 price level. In order to use

the input-output relationships, the detailed projections of final demand

expenditures must either be stated in 1958 prices, or the basic inputoutput table must be converted to the price level underlying the final

demand estimates. In this study, the projections of final demand expenditures are developed in constant 1958 prices.

This does not mean that changes in relative price 9/ are ignored.

For example, projected changes in relative price are used in developing

the detailed estimates of consumer expenditures.

In another area, the change in relative price is implicit in projections of input-output relationships. Technological change affects

input-output coefficients. Similarly, the substitution of one material

for another due to relative price changes may affect input-output

9/ Relative price change is the relationship between the change in

pric6 of a given commodity or service and the average price change of

all commodities and services.

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coefficients. Where past trends are used as the basis for projecting

input-output relationships, the past impact of relative prices is

assumed to continue.

Investment requirements. The table of direct and indirect interindustry relationships shows what each industry must produce in order to

provide the materials, transportation, and distributive services ultimately embodied in the final products of the economy.

The direct and indirect inputs are limited, however, to current

account of purchases of goods and services. The input-output relationships do not cover the purchases of capital goods required, directly or

indirectly, for the production of final goods and services. In using

the input-output relationships as the basis for converting final demand

into direct and indirect industry output requirements, independent projections must be made for investment expenditures for plant and equipment required by an expanding economy. The methods used in developing

the projection for this component of final demand are discussed later

in this bulletin.

Employment. The basic interindustry relationships are limited to

production relationships. They show what each industry must produce in

order to meet the demand for final goods and services. The basic inputoutput ratios or coefficients do not cover employment requirements. In

order to evaluate the employment implications of demand for final goods

and services, the output requirements need to be converted into employment requirements. This is accomplished by applying appropriate ratios

of employment per dollar of output to the derived levels of industry

output. This can be done either as a separate stage in the computations

or by converting the basic interindustry table into an interindustry

employment table. The latter shows the employment that is required in

each industry, directly or indirectly, to meet the demand for final

goods and services. As in the case of output, the employment covers all

the intermediate stages of production, transportation, and distribution

ultimately embodied in the final good or service, as well as in the

final stage itself. In this study, the projections for final demand are

converted into employment requirements through the use of an interindustry employment table.

Projections. Finally, the basic input-output relationships and the

ratios of employment per dollar of output reflect the relationship which

existed in some base period--1958 in this instance. The objective of

the study, however, is to evaluate the employment implications of final

demand, projected to 1970. Consistent with this objective, the interindustry employment table has also been projected to reflect changes in

input-output relationships as well as changes in unit labor requirements

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by 1970. The projection of unit labor requirements in each industry is

based, in turn, on the projections of labor productivity (output per

man-hour) and annual hours paid.

The various stages of the projections can, therefore, be considered

as falling into three main categories: (1) projections of the 1970

final demand "bill of goods," classified by input-output industry and

valued in 1958 constant prices; (2) development of a 1970 interindustry

employment table; and (3) the projection of 1970 industry employment,

derived by multiplying the final demand bill of goods by the relationships derived from the interindustry employment table.

Balances. A distinctive feature of the approach is that the projections are developed as a series of successive approximations in which

initial estimates of major aggregates and even detailed components may

be modified by later stages in the computations until the various

elements of the models are in balance. For example, the first set of

generated employment requirements may not, in the aggregate, be consistent with the projected supply of labor, given the assumed unemployment

rate. If there is a disparity between the supply of labor and the

demand generated by the model, this implies that either the level of

potential output needs to be modified or the elements of the projections

(composition of final demand, input-output relationships, output per

man-hour) leading up to the derived employment requirements need to be

reviewed and modified. Either approach may require several iterations

to achieve a balanced set of estimates. The projections shown in this

bulletin are the final result of this process of successive approximations, using the approach of achieving a balance by modifying each of

the elements.

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Chapter II. Potential Output in 1970

The starting point for the projections of the industrial distribution

of employment is the potential output of final goods and services in 1970.

The projections are based on the assumption that between 1965 and 1970 the

economy will continue to grow sufficiently to provide jobs for the expanding labor force and to maintain relatively high rates of employment. For

the purpose of this study, high rates of employment are defined as being

consistent with 4- and 3-percent civilian unemployment rates. Projections

of potential national output have been developed, based on these alternative assumptions regarding the unemployment rate. The projection of

potential output (GNP in constant dollars) involves additional projections

of the labor force, annual hours per worker, and output per man-hour.

The projections of potential national output are developed in constant

(1958) dollars in order to exclude the effect of a change in price. The

projections of constant dollar GNP are stated in 1958 prices to be consistent with the price level of the basic input-output table and the detailed

estimates of constant dollar expenditures for final goods and services,

developed by the Office of Business Economics. 10/

The various elements of the projections of potential output are

described below and summarized in table II-l. (See end of chapter.)

In 1965, the labor force (defined as those in the population 14 years

and over at work or seeking work) was 78.4 million. By 1970, assuming a

4-percent unemployment rate, the labor force is expected to grow to about

86 million, an increase of about 7.6 million over the 5-year period.11/

There is some evidence, however, that the labor force participation rate

will respond to the unemployment rate--that more people will seek to enter

the labor force at higher levels of employment. To reflect this, under

the assumption of 3-percent unemployment, the labor force has been

increased by an additional 400,000.12/

The labor force is projected to increase between 1965 and 1970 at 1.9

percent a year in the 4-percent model and 2 percent a year in the 3-percent

model. This may be compared with a growth in the labor force of 1.3

percent a year in the period between 1957--the last previous year in which

unemployment approached 4 percent--and 1965. This increase in the rate is

10/The GNP estimates for 1965, used in deriving potential GNP for

1970, were preliminary. The annual revisions shown in the July 1966

Survey of Current Business were not incorporated in any of the estimates,

nor in any of the tables showing 1965 GNP. However, the magnitude of the

annual revisions are such that it is unlikely that any of the results

would be changed significantly.

11/Sophia Cooper and Denis F. Johnston, "Labor Force Projections for

1970-80," (Special Labor Force Report No. 26), Monthly Labor Review,

February 1965, pp. 129-40.

12/Sophia Cooper and Denis Johnston, op. cit., p. 140.

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largely the result of the entrance into the labor force of the large number

of persons born in the immediate post-war period who will reach working age

during 1965-70. Another reason is the higher labor force participation

rates for women. Applying the assumed unemployment rates to the projected

civilian labor force gives the level of employment in 1970. The size of

the Armed Forces is estimated separately. The projections assume that the

conflict in Viet Nam will be over by 1970, but that defense expenditures

and the size of the Armed Forces will be maintained at a level somewhat

above the pre-Viet Nam level.

In 1965, the labor force was below the level implied by the projections for the 1960-70 period. It is difficult to judge how much of this

"shortfall" is transitory and how much of it reflects factors which would

affect the trend in labor force participation rates over a longer term.

Acceptance of the original labor force estimates for 1970 assumes that

participation rates will return to the trend levels. On this basis, the

1.9-percent projected increase in the labor force from 1965 includes the

acceleration required to make up the shortfall, in addition to the

increases normally to be expected. The projected rate of growth of the

labor force, excluding the shortfall, would be about 1.7 percent a year,

still considerably above that of the previous rate (1.3 percent).

The detailed employment projections, which are developed later in the

models, are based on data consistent with establishment reporting systems

which count jobs; the data thus reflect dual jobholding. In contrast, the

labor force estimates are based on household interviews which count individuals, rather than jobs. An adjustment is made to the projection of the

labor force in order to make it consistent with the establishment reporting

system.13/ The establishment-based estimates of employment used in the projections are those developed by the Office of Productivity, Technology and

Growth, BLS, as part of its program of productivity measures.

The estimate of total employment, based on establishment reports, is

derived by adding estimates of government employment, agricultural employment, self-employed, unpaid family workers, and domestics to BLS estimates

of private nonfarm wage and salary employment.

The difference between the labor force estimate of total employment

and that based on the adjusted establishment series reflects both statistical differences as well as differences due to dual jobholding. The

13/ For a discussion of the differences in the labor force survey procedures and the nonfarm establishment reporting system, see the technical

note in any current issue of BLS periodical, Employment and Earnings and

Monthly Report on the Labor Force.

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adjustment factor has varied over the historical period. In the projections developed for this bulletin, it has been assumed that the difference

between the two employment estimates will remain at about the level of the

average difference for the past few years.

The projections of hours of work and productivity use estimates for

the postwar years which are prepared by the Office of Productivity, Technology and Growth. These are used as a statistical frame of reference,

thus assuring consistency between historical data and projections of

employment, hours of work, productivity and output.14/

These projections of employment, hours of work, and productivity are

developed for broad sectors (i.e., government, agriculture and nonagriculture). This is done to take into account the fact that aggregate

productivity may be affected by shifts in the relative importance of

sectors which have different levels of productivity.

The separate projections of labor force, unemployment, employment,

annual hours per job, and productivity (output per man-hour) are combined

to develop the estimates of potential GNP in 1970. Derived from these are

the implied growth rates between 1965 and 1970 required to achieve and

then maintain the rates of unemployment at 4 and 3 percent of the civilian

labor force.

Total employment, on an establishment basis, is projected to increase

by 1.9 or 2.2 percent a year, depending on the unemployment assumption.

The rates among the major sectors of the economy vary considerably. Federal Government employment is projected to increase only moderately--at

about half the rate of increase of total employment. The moderate increase

in Federal employment is consistent with the assumption regarding the end

of the Viet Nam conflict by 1970. In addition, the projections of Federal

Government programs developed in the final demand "bill of goods" stage

imply that most of the increases in Federal Government expenditures are not

for direct purchases of goods and services, including Federal employment.

They are for grants to State and local governments for such programs as,

aid to education, and manpower training or for transfer of funds to individuals, as under the social security programs. Federal Government

employment would, therefore, be affected only moderately by the expansion

of such programs as aid to education, antipoverty, and Medicare.

14/lrends in Output per Man-Hour in the Private Economy, 1909-1958,

Bulletin 1249, 1960. For the most recent information on indexes of output

per man-hour, see release "Indexes of Output per Man-Hour for the Private

Economy, 1947-1965," Office of Productivity, Technology and Growth, BLS,

October 1966.

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State and local government employment, on the other hand, is projected to continue to increase much faster than the average, as it has

been doing for most of the postwar period. The projected increase in

State and local government employment of 5 percent or more a year is

based on a detailed study of the expected expansion in State and local

government expenditures over the next 5 years. The details are discussed

later1in the bulletin, when describing the projection of the "bill of

goods" for State and local government.

The 3-percent unemployment model allows for a somewhat higher rate

of increase in State and local government employment than does the

4-percent model. This is based on the assumption that some increases in

manpower training and antipoverty programs will be necessary to achieve

and then maintain a 3-percent unemployment rate. Such programs would

require some increase in State and local employment because of the expansion in training staff. Also, in the case of certain programs such as

Neighborhood Youth Corps, trainees are considered as State and local

employees.

The difference in State and local government employment between the

3- and 4-percent unemployment models represents only a third of the total

difference of 1.2 million jobs between the two models. Most of the

increased employment is assumed to be in the private sector of the economy.

Employment in the agricultural sector is projected on the basis of a

continuation of the postwar decline in employment for this sector. The

rate of decline is somewhat reduced, however.

Given the projected increase in total employment and the separate

projections of Federal Government employment, State and local government

employment, and farm employment, total private nonagricultural employment

is derived as a residual. The projected increases for this sector are

1.9 and 2.1 percent a year over the 1957-65 period. The increased rate

of employment reflects both acceleration in the growth of the labor force

and reduction in the unemployment rate.

Within the total private nonagricultural sector, the projected

increase in employment varies by type of employment. Self-employed and

unpaid family workers, for example, are assumed to increase at half the

rate of total employment, continuing the past decline in this whole

class of employment relative to wage and salary employment.

The projections of annual hours per job are developed separately for

each major sector.15/ Hours per person employed in the government sectors

are assumed to remain the same as in 1965. Average hours in agriculture

15/Hours used are payroll hours or hours paid, which include paid

holidays, paid vacations, and paid sick leave.

239-877 0 - 66-3

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are expected to decline at about the rate for the postwar period, excluding the change for the last year or two which saw a slowing down in the

decline in hours.

Hours per job for the private nonfarm sector are expected to decline

at about 0.3 percent a year. The decline reflects a projection of little

or no change in manufacturing hours and a continuation of declines in the

nonmanufacturing sector. In the 1963-65 period, average hours increased

rather than followed the trend toward reduced hours. It is assumed,

however, that average hours, which in 1965 already included substantial

overtime in the manufacturing sector and increases in other sectors, will

revert to stability in manufacturing and to continued reductions in nonmanufacturing. The much larger labor force being projected includes, by

assumption, increased part-time employment among students and women.

Both groups are traditionally employed in the large nonmanufacturing

sectors of trade and services, which provide most of the opportunity for

part-time employment.

The trend of output per man-hour is the most difficult element to

project. It reflects changes in technology, quality of the labor force,

rate of capital investment, and capacity utilization. These factors in

turn reflect many other elements in the economic, political, and social

structure of the Nation.

For the purpose of these projections, it is assumed that the trend

in output per man-hour since 1957 would continue over the next 5 years.

The 1957-65 period was chosen, because 1957 was the last year in which

the unemployment rate was close to 4 percent. Thus, the distortions

resulting from changes in capacity utilization are minimized. The rate

of growth in output per man-hour during this period was 3.2 percent a

year for the private economy.16/ Productivity increases in the agricultural sector were considerably higher than the average. They are projected to continue their increase--about 5.5 percent a year--a more

rapid rate than that of the nonfarm sector. The rate of change for the

private nonfarra sector is projected at the past rate of 2.9 percent a

year.

The separate projections of the labor force, employment, annual

hours per worker, and output per man-hour yield a projected growth rate

of 4.3 percent a year, under the 4-percent unemployment assumption, and

4.5 percent a year, under the 3-percent unemployment assumption. Real

GNP in 1958 prices is projected to grow by 1970 to about $750 billion

under the first assumption, and to almost $760 billion under the latter

assumption. (In 1965 prices, potential GNP in 1970 would be about $835

or $845 billion, depending on the unemployment assumption.)

16/In accordance with the conventions in the measurement of constant

dollar GNP, output per man-hour for government is assumed to be constant,

i.e., it is assumed that there is no increase in the productivity of government employees.

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These projected rates of increase are annual averages for the

remainder of the decade. The sustainable growth rate, estimated to be

about 4 percent a year by 1970, would be lower because part of the

increase is related to the reduction in unemployment rate from the 4.6

average in 1965 and making up the "shortfall" in the growth in the

labor force. The projected growth rates are lower than those achieved

over the past few years, but are still significantly higher than the

actual growth rate of 3.7 percent a year over the entire post-war period

It should be emphasized that the projected growth rates are based

on a number of assumptions. If the labor force shortfall is not made

up, the growth rate would be about 0.2 percent a year lower. If the

decline in average hours is eliminated or reduced, the growth rate

would be higher. Finally, the growth rate would be somewhat higher or

lower depending on the assumption about the trend in output per man-hour

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Table II-l. Labor Force, Employment, Annual Hours, Productivity, and Gross National Product

Actual 1957 and 1965, and Potential 1970

Item

Actual Projected 1970 Average annual. .

rate of c hange^

1957 1965— ^

3 percent

unemployment

4 percent

unemployment

1957-65

1965-70

3 percent

unemployment

4 percent

unemployment

Total labor force (thousands)............................... 70.744 78.357 86.400 86.000 1.3 2.0 1.9

Unemployed.................................................. 2,936 3,456 2,507 3,326 1.4 -6.2 -.7

Employed.......................... ........ ................. 67,808 74,901 83,893 82,674 1.3 2.3 2.0

Employment: establishment basis— ^ (thousands)............. 71,117 77,347 86,193 84,974 1.1 2.2 1.9

Government^ ............................................... 9,756 12,003 14,718 14,301 2.6 4.2 3.6

Federal................................................... 4,531 4,560 4,795 4,790 .1 1.0 1.0

Military............... ................................ 2,786 2,720 2,850 2,850 -.3 .9 .9

Civilian................................................ 1,745 1,840 1,945 1,940 .7 1.1 1.1

State and local.......................................... 5,225 7,443 9,923 9,511 4.5 5.9 5.0

Private..................................................... 61,361 65,344 71,475 70,673 .8 1.8 1.6

Agriculture..... ........................................ 6,222 4,585 4,080 4,080 -3.8 -2.4 -2.4

Nonagriculture................ .......................... 55,139 60,759 67,395 66,593 1.2 2.1 1.9

Hours of work (annual average)— p r i v a t e ^.................. 2,112 2,081 2,040 2,040 -.2 -.4 -.4

Agriculture................................. ...... ........ 2,371 2,345 2,298 2,298 -.1 -.4 -.4

Nonagriculture.............................................. 2,089 2,061 2,030 2,030 -.2 -.3 -.3

Total man-hours (millions)— private......................... 129,619 135,969 145,806 144,272 .6 1.4 1.2

Agriculture................................................. 14,752 10,752 9,376 9,376 -3.8 -2.7 -2.7

Nonagriculture............................................. 114,867 125,217 136,430 134,896 1.1 1.8 1.5

GNP per man-hour (1958 dollars)— private— ^................. 3.15 4.07 4.76 4.75 3.2 3.2 3.2

Agriculture................................................. 1.38 2.17 2.83 2.82 5.8 5.5 5.4

Nonagriculture.............................................. 3.38 4.24 4.89 4.89 2.9 2.9 2.9

Gross national product (1958 dollars)....................... 452.5 609.0 ^ 7 5 9 . 0 ^ 7 5 0 . 7 3.8 4.5 4.3

Rest of the w o r l d ^ ................ ....................... 2.1 4.5 5.0 5.0 10.0 2.1 2.1

GNP (domestic).............................................. 450.4 604.5 754.0 745.7 3.7 4.5 4.3

Government, general...................................... 41.9 50.6 60.0 59.3 2.7 3.5 3.2

Federal........... ..................................... 21.5 21.6 22.8 22.8 .1 1.1 1.1

Military........................................... 11.1 10.9 11.4 11.4 -.2 .9 .9

Civilian............................................. 10.3 10.7 11.4 11.4 .5 1.3 1.3

State and local........................................ 20.4 29.0 37.2 36.5 4.5 5.1 4.7

Private.................................................. 408.5 553.9 694.0 686.4 3.9 4.6 4.4

Agriculture............................................ 20.3 23.3 26.5 26.4 1.7 2.5 2.5

Nonagriculture......................................... 388.2 530.6 667.5 660.0 3.5 4.7 4.5

1/ Preliminary estimate.

2/ Compound interest rate based on terminal years.

3/ The total civilian employment differs from that shown

in table VI-1 and table VI-3 because of differences in the

treatment of government employees.

4/ For consistency with measures of government output,

estimates of government employment used are those developed

by the U.S. Department of Commerce, Office of Business

Economics.

5/ In accordance with the conventions in the measurement

of constant dollar gross national product, productivity for

government is assumed constant. Since no change in average

hours is projected for this sector, the change in government product is equal to the change in employment.

6/ Gross national product for 1970 shown here is as computed but has been rounded to $760 and $750 for use as control

totals for the various models.

U Rest of the world reflects U.S. income and product originating outside the United States.

SOURCE: Historical data on gross national product are from

the U.S. Department of Comaerce, Office of Business Economics.

All other historical data and projections are from the U.S.

Department of Labor, Bureau of Labor Statistics.

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Chapter III. Distribution of Potential Output Among Major Categories

of Final Demand

The projections developed in this bulletin are based on the assumption that potential demand for end products and services by the various

final demand claimants are exactly equal in total to the potential output of the economy in 1970. This chapter describes how the total final

demand may be distributed among the major categories of consumer goods

and services, private investment goods, public goods and services, and

net exports.

In general, the composition of final demand is projected on the

basis of a combination of assumptions and independent studies for specific final demand components. Because the assumptions are basic to an

understanding of the projections, it may be useful to start with an

explanation of these assumptions.

Assumptions

Some of the basic assumptions have already been mentioned. The

major assumption is that the Viet Nam conflict will have been resolved

by 1970 and that defense expenditures and the size of the Armed Forces

will be reduced to a level somewhat higher than that which existed prior

to the Viet Nam buildup. In the event of a large scale military buildup, the resulting patterns of demand and employment would, of course, be

significantly different. This is especially true for several of the

defense-related Industries--ordnance, aircraft, and electronics and

communications equipment, among others.

It is further assumed that growth in the economy will be based primarily on the expansion of consumption and investment demand and of State

and local government expenditures. Federal Government direct purchases

of goods and services are projected to expand only moderately.

As previously stated, it should be noted that expenditures resulting from many Federal Government programs are treated in the national

income accounts, and therefore in these projections, as expenditures by

consumers (Medicare), and by State and local governments (highway

construction).

In general, the projections are based on the assumption of continuation of past relationships, e.g., relationships of consumer expenditures for specific items to the level and change in personal income, or

extension of existing government programs to provide public services.

The projections of demand are not based on a systematic analysis of

national goals and what would be required to achieve these goals, e.g.,

achievement of minimum nutritional standards or elimination of substandard housing. However, the basic assumptions of high rates of employment

29

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and continued economic growth underlying these projections would imply

gains in the attainment of minimum standards or goals.17/

It is also assumed that maintenance of growth rates consistent with

high levels of employment would be implemented by appropriate fiscal and

monetary policies designed to maintain adequate aggregate demand. In

addition, continuation of specialized programs to provide training and

retraining, worker experience, labor mobility, and employment in public

service projects would be essential. Implementation of these special

programs will involve the active participation of labor, management, nonprofit organizations, and agencies of Federal, State, and local government.

It is assumed that Federal Government policy places more emphasis on

expansion of specialized programs under the 3-percent unemployment model

than under the 4-percent unemployment model. Expansion of these specialized programs will involve some increase in direct government employment

(primarily State and local government), but most of the increase is expected to be in the private sector of the economy. Consistent with the

assumption that the primary objective of the specialized programs is to

facilitate employment in the private sector, the patterns of final demand

in both the 4- and 3-percent unemployment models are similar. A moderately higher level of employment in State and local governments is projected for the 3-percent unemployment model.

One of the major uncertainties in the projections of final demand is

the extent to which the unusually high rates of increase during the past

few years for consumer durables, particularly automobiles, and for domestic private investment for plant and equipment may be expected to continue.

The substantial increases in demand for durable goods account in large part

for the reversal of the previous sluggish growth in manufacturing employment. In order to explore the implications of changes in this dynamic

component of final demand, several alternative assumptions have been developed. The basic 4- and 3-percent unemployment models assume that by 1970,

expenditures for consumer and producer durable goods will return to a pattern based on past relationships. An alternative to the basic 4-percent

unemployment model (high durables) assumes that the recent sharp increase

in expenditures for consumer durables and capital goods will continue, but

at a more moderate rate. This rate is still above that implied by past

relationships, however. An additional alternative to the 4-percent unemployment model (high services) assumes that, as a result of increased

productivity of capital, capital expenditures will continue to increase,

but at a lower rate than the increase in real output; therefore, capital

17/ For research on the achievement of national goals, see: (1)

Leonard Lecht, The Dollar Cost of Our National Goals, (Washington, D. C.,

National planning Association, 1965); and (2) the section on "Manpower

Requirements to Achieve National Goals" in the 1966 Manpower Report of

the President, pp. 45-47.

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expenditures for plant and equipment would decline as a proportion of GNP.

This alternative model also assumes that the anticipated sharp increase in

residential construction, postulated in the basic models, will be delayed

somewhat and will only increase moderately by 1970. The slower increase

in private domestic investment in this model is assumed to be offset by

larger increases in consumer expenditures, primarily in consumer services

and increased State and local government expenditures.

Although the alternative projections are only applied to the basic

4-percent unemployment model in this bulletin, they can be considered as

equally applicable to the basic 3-percent unemployment model.

Based on the assumptions indicated above and on the studies of a number of the final demand categories, the projections of the major components

of final demand in 1970, as shown in tables III-l to 3, are developed. These

projections are as follows:

Government expenditures. By 1970, Federal Government expenditures

are projected to increase about $6.5 billion (in constant 1958 prices)

above the 1965 level. This implies moderate increases for nondefense

programs and a leveling off of military expenditures below the 1966 level,

but still somewhat higher than the 1965 level. The projection of Federal

nondefense purchases of goods and services is based in part on some of the

long-run projections developed by the National Planning Association in a

study for the Brookings Institution.18/

Federal expenditures for goods and services are projected to increase

at a slower rate than the growth in total final demand. The result is that

this component will decline from about 9.4 percent of real GNP in 1965 to

about 8.4 percent by 1970.

In contrast, State and local government expenditures for goods and

services are projected to increase substantially faster than any other major component of final demand. This reflects the rapid growth in services,

particularly in the education area, required by an expanding and continual

more urban population. As a result, the relative increase in State and

local government expenditures for goods and services is expected to almost

offset the relative decline in Federal Government expenditures for goods

and services. The increase in State and local government expenditures

would be from about 9 percent in 1965 to about 10 percent in 1970. By

1970, State and local government expenditures for goods and services are

projected to be substantially higher than those made by the Federal Government. The projection for State and local government expenditures is

somewhat higher in the high service (low investment) model than in the

other models.

18/ Gerhard Colm and Peter Wagner, Federal Budget Projections in the

Perspective of Economic Growth, National Planning Association, Studies of

Government Finance, (Washington, D. C., The Brookings Institution, 1965).

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The estimates of State and local government expenditures are based

on an evaluation of the extent to which existing programs may be modified,

extended, or expanded by 1970. This is based on a detailed analysis of

each function performed by State and local governments, taking account of

such specific factors as the effect of anticipated increases in school enrollment on education expenditures.

The estimates of State and local government expenditures for goods

and services are based on two separate but complementary approaches: one,

an evaluation of functions for all State and local governments combined;

the other, a much more detailed State-by-State approach. The first approach was developed by staff of the Bureau*s Division of Economic Growth

and the second by a special study group cosponsored by the Council of

State Governments and George Washington University.19/ The projections of

expenditures by these different approaches yield approximately the same

results.

Investment. Gross private domestic investment consists of three

items; expenditures for private residential construction, expenditures for

private plant and equipment, and net change in business inventories.

In the basic projections, private residential construction is projected to increase rapidly by 1970 to provide housing for the growing number

of families and to meet the large demand for replacement of old units.

Housing starts (single family housing and multiunit dwellings) are projected to increase from about 1.5 million in 1965 to about 1.9 million in 1970

This is consistent with the intermediate projection of housing starts for

the 1965-75 decade, developed by the Office of Business Economics, U.S.

Department of Commerce.20/

Nonhousekeeping units (hotels, motels) are projected to increase even

faster than housekeeping units. The rate of increase in total private resi

dential construction is somewhat higher than for the economy as a whole.

However, because housing starts have shown little growth for several years

and because construction might not respond to increases in family formation

until after 1970, the high service (low investment) model assumes a lower

rate of increase than the basic model.

As previously indicated, the projection of private nonresidential fixed investment represents one of the most difficult areas in the entire set

of projections. For several years, expenditures for this category have

been increasing substantially faster than real output in the economy. By

1965, this component accounted for 10.7 percent of GNP (in 1958 prices), a

somewhat higher ratio than that achieved in the capital goods boom of

1955-57. Information on expenditures for private nonresidential fixed investment during 1966 indicates that this relative increase will continue.

19/ This project was under the direction of Selma Mushkin, see Bibliography in Appendix.

20/ L. Jay Atkinson, "Long-Term Influences Affecting the Volume of New

Housing Units," Survey of Current Business, November 1963, pp. 8-19.

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There is considerable uncertainty, however, as to how much longer this can

continue before increases in capacity exceed demand.

Since there is so much uncertainty in this area, the projection for

this category has not been limited to a single estimate. Instead, three

alternative assumptions have been introduced into the models to test the

implications of these alternatives on the structure of demand and

employment.

The basic 4- and 3-percent unemployment models assume that private

nonresidential fixed investment in 1970 will account for approximately

the same ratio of total final demand as in 1965--10.7 percent. The high

durable goods alternative to the basic 4-percent unemployment model assumes

that the relative increase in expenditures for this category will continue

for most of the remainder of the decade, but at a slower rate than that of

the past few years. By 1970, the ratio of private nonresidential fixed investment to output (GNP in constant prices) is projected to increase to

11.5 percent--$6.5 billion more than in the basic model.

Recent research at the Brookings Institution suggests a different

alternative. Namely, that as a result of increasing efficiency in the

use of capital, the proportion of output devoted to private nonresidential fixed investment may decline rather than increase.21/ In order to

examine this possibility, the high service (low investment) alternative

assumes that private nonresidential fixed investment will continue to

increase, but at a slower rate than real output, and by 1970 will represent a smaller proportion of real GNP than in 1965. It is further assumed

that this reduction will be offset by increases in consumer and State and

local government expenditures, primarily for services.

By 1970, under the assumptions of this model, the proportion of GNP

devoted to private nonresidential fixed investment is projected to decline

to 10 percent— about $5 billion lower than in the basic model. Thus, the

implications of a range of almost $12 billion in private nonresidential

fixed investment is explored in these models.

The projection for this component is further distributed between construction and producer durable equipment. This is done on the assumption

that the long-run increase in the proportion going to equipment will continue, but at a diminishing rate. In 1965, investment in equipment represented 67 percent of this total; by 1970, it is projected to increase to

almost 70 percent, a higher ratio than at any time during the postwar years.

21/ Bert G. Hickman, Investment Demand and U.S. Economic Growth,

(Washington, D. C., The Brookings Institution, 1965).

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The last category of investment, the change in inventories is projected on the assumption that it will increase sufficiently to maintain the

ratio to real output it achieved in 1964. The year 1964 rather than 1965

was selected as a more appropriate base because of the special factors

affecting inventories during 1965. For example, steel was stockpiled in

anticipation of a steel strike. Also, the ratio of inventory change to

GNP in 1964 is about the same as that for the entire period 1957-65.

Net exports. The projection of net exports is based on a study by

the Office of Business Economics which projects the major components of

the United States balance of payments, including separate estimates of

imports and exports. It is assumed that by 1970 international payments

among the major regions of the world will be roughly in balance.22/ Net

exports as a percentage of GNP are projected to increase from 1.0 percent

in 1965 to about 1.4 percent in 1970.

Personal consumption. The largest category of final demand, consumer

expenditures, is initially derived as a residual. It is then evaluated to

determine whether its relationship to total final demand is reasonable from

the viewpoint of the past trend in its share of output. Because the estimate of consumer expenditures is derived initially as the residual component,

the share of consumer expenditures in the models varies, depending on the

assumptions underlying the models.

In general, the share of consumer expenditures in the basic models is

approximately the same as that during most of the period since 1957--almost

65 percent of GNP. The high durable goods alternative, which includes a

larger share for investment, has a somewhat smaller ratio of consumer expenditures. Conversely, the high service (low investment) alternative has

a higher proportion of GNP going to consumer expenditures. The difference

between the alternatives amounts to $12 billion.

The various models make it possible to explore the implications for

employment of possible changes in both the level and composition of consumer demand. The composition of consumer expenditures has already been

mentioned in the earlier discussion of the alternative models. It will

be discussed further in the next section which deals with the methodology

used to develop the more detailed distribution of the major components of

final demand.

22/ Evelyn M. Parrish, A Pattern of Balances of Payments between World

Regions in 1970, Staff Working Paper in Economics and Statistics, No. 9,

Office of Business Economics, U.S. Department of Commerce, September 1964

(unpublished).

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Table Ill-l. Gross National Product, by Major Components, Selected Years and Projected 1970

(Billions of 1958 dollars)

Major component

Selected years^7 Projected 1970

1957 1962 1 9 6 5 ^

3 percent

unemployment

Basic

model

4 percent unemployment

Basic

model

High-7

durables

H i g h ^

services

Gross national product..................................... 452.5 530.0 609.0 760.0 750.0 750.0 750.0

Personal consumption expenditures...................... 288.2 338.6 394.1 492.6 485.5 478.5 490.5

Durable goods........................................ 41.5 49.2 65.4 83.1 81.9 89.7 82.2

Nondurable goods..................................... 138.7 158.4 177.0 212.1 209.0 208.2 209.8

Services............................................. 108.0 131.1 151.6 197.4 194.5 180.6 198.5

Gross private domestic Investment...................... 68.8 79.4 96.1 118.6 117.0 124.0 110.0

Fixed investment..................................... 67.6 73.4 88.9 112.6 111.0 118.0 104.0

Nonresidentlal.................................... 47.4 49.7 65.0 81.3 80.0 86.5 75.1

Structures..................................... 18.2 17.9 21.2 25.3 25.0 27.0 23.6

Producers' durable equipment................. 29.1 31.7 43.8 56.0 55.0 59.5 51.5

Residential structures........................... 20.2 23.8 23.9 31.3 31.0 31.5 28.9

Change in business inventories...................... 1.2 6.0 7.2 6.0 6.0 6.0 6.0

Net exports of goods and services...................... 6.2 4.5 6.0 10.5 10.5 10.5 10.5

Exports.................. ............................ 26.2 30.0 37.3 45.2 45.2 45.2 45.2

Imports............................................... 19.9 25.5 31.3 34.7 34.7 34.7 34.7

Government purchases of goods and services............ 89.3 107.5 112.8 138.4 137.0 137.0 139.0

Federal................................ ............. 51.7 60.0 57.2 63.7 63.5 63.5 63.5

State and local...................................... 37.6 47.5 55.6 74.7 73.5 73.5 75.5

Percent distribution

Gross national product..................................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Personal consumption expenditures...................... 63.7 63.9 64.7 64.8 64.7 63.8 65.4

Durable goods................ .................. . 9.2 9.3 10.7 10.9 10.9 12.0 11.0

Nondurable goods............................. ....... 30.7 29.9 29.1 27.9 27.9 27.8 28.0

Services............................................. 23.9 24.7 24.9 26.0 25.9 24.1 26.5

Gross private domestic investment...................... 15.2 15.0 15.8 15.6 15.6 16.5 14.7

Fixed investment.................................... 14.9 13.8 14.6 14.8 14.8 15.7 13.9

Nonresidentlal.................................... 10.5 9.4 10.7 10.7 10.7 11.5 10.0

Structures..................................... 4.0 3.4 3.5 3.3 3.3 3.6 3.1

Producers' durable equipment................. 6.4 6.0 7.2 7.4 7.3 7.9 6.9

Residential structures............. ........... . 4.5 4.5 3.9 4.1 4.1 4.2 3.9

Change in business Inventories........... 0.3 1.1 1.2 0.8 0.8 0.8 0.8

Net exports of goods and services...................... 1.4 0.8 1.0 1.4 1.4 1.4 1.4

Exports............................................... 5.8 5.7 6.1 5.9 6.0 6.0 6.0

Imports........................... ................... 4.4 4.8 5.1 4.6 4.6 4.6 4.6

Government purchases of goods and services............ 19.7 20.3 18.5 18.2 18.3 18.3 18.5

Federal...................................... ........ 11.4 11.3 9.4 8.4 8.5 8.5 8.5

State and local...................................... 8.3 9.0 9.1 9.8 9.8 9.8 10.1

1/ See table A-l for data covering 1950-65.

2/ Preliminary estimate.

3/ The high durables model assumes continuation of above

average Increases In expenditures for consumer durables and

fixed nonresidential investment.

4/ The high services model assumes a lower than average

increase in consumer durables and fixed nonresidentlal investment with the difference made up by increases In consumer and

State and local expenditures for medical and educational

services.

NOTE: Because of rounding, sums of individual items may

not equal totals or 100 percent.

SOURCE: Historical data on gross national product are

from U.S. Department of Cosmerce, Office of Business Economics.

Projections are by U.S. Department of Labor, Bureau of Labor

Statistics.

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Table III-2. Changes in Gross National Product, by Major Components,

Selected Periods and Projected 1965-70— 7

(Average annual rate o£ change)

Selected periods Projected 1970

Major component

3 percent

unemployment4 percent unemployment

1957-65 1957-62 1962-65

Basic

model

High-7

durables

High— 7

Basic services

model

Gross national product.......... . 3.8 3.2 4.7 4.5 4.3 4.3 4.3

Personal consumption expenditures. 4.0 3.3 5.2 4.6 4.3 4.0 4.5

Durable goods................... 5.9 3.5 9.9 4.9 4.6 6.5 4.7

Nondurable goods................ 3.1 2.7 3.8 3.7 3.4 3.3 3.5

Services.............. . 4.3 4.0 5.0 5.4 5.1 3.6 5.5

Gross private domestic investment. 3.9 2.9 6.5 4.3 4.0 5.2 2.7

Fixed investment................ 3.2 1.7 6.6 4.8 4.5 5.8 3.2

Nonresidential................ 3.6 0.9 9.3 4.6 4.3 5.9 2.9

Structures......... . 1.1 -0.3 5.8 3.6 3.3 5.0 2.2

Producers' durable

equipment................... 5.1 1.7 11.4 5.0 4.7 6.3 3.1

Residential structures....... 2.1 3.3 0.1 5.5 5.3 5.7 3.9

Change in business inventories.. 23.6 38.0 6.3 -3.6 -3.6 -3.6 -3.6

Net exports of goods and

services.......................... 1.5 -6.2 10.0 11.9 11.9 11.9 11.9

Exports............ •••.••••••••• 4.6 2.8 7.5 3.9 3.9 3.9 3.9

Imports............. ........... 5.5 5.1 7.1 2.1 2.1 2.1 2.1

Government purchases of goods

and services...................... 2.9 3.8 1.6 4.2 4.0 4.0 4.3

Federal......................... 1.3 3.0 -1.6 2.2 2.1 2.1 2.1

State and local................. 4.9 4.8 5.4 6.1 5.8 5.8 6.3

1/ Compound interest rates based on terminal 3/ See footnote 4 in table I1I-1 for explanayears. tion.

2J See footnote 3 in table III-l for explanaation.

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Chapter IV. Detailed Final Demand "Bill of Goods"

The objective in this phase of the work is to distribute the aggregate estimate of expenditures for each major component of potential GNP

into detailed expenditures for specific goods and services. The distribution must be consistent with the industry classification system and special definitions of the input-output framework used in the models. The

detailed estimates have been developed by projecting, wherever possible,

the changing composition of the individual categories of goods and services for each major component of final demand. The methods vary, depending on the particular component and the availability of historical data

which can be used to develop functional relationships or trends. For some

of the areas, several stages are involved in the estimating procedures.

The historical data (primarily from the Office of Business Economics)

used in evaluating past and prospective changes in patterns of expenditures

vary from category to category in the level of detail available. In this

report, these data have been used for the initial projection of the distribution of final demand. The data were then adjusted and modified to be

consistent with the input-output classification system (table IV-1). The

detailed projections, stated in producers' value at 1958 prices are shown

in a series of tables which also include the comparable expenditures for

each item as shown in the basic input-output table for 1958. In addition,

in order to provide estimates of final demand in full input-output detail

for a more recent year than 1958, estimates for 1962 also have been developed and included in the tables.

Before discussing demand by industry, certain industry conventions

within the input-output structure should be mentioned. First, a number

of industries are not industries in the usual sense. Three of the industries are synthetic or "dummy" industries. Such industries generally consist of numerous commodities or services which originate in different industries. Their use is related to a common activity for which information

on consumption is generally limited to the group as a whole. In such instances, products made in different industries are channeled through a

fictitious distributing industry. An example is industry 82, office supplies, which "buys" and then distributes paper clips, typewriter paper,

and similar office supplies through one central source. The two other

dummy industries which provide a similar function are industry 81, business travel, entertainment, and gifts; and industry 83, scrap, used and

secondhand goods.

To anticipate the discussion later in the report, purchases from industries 81 and 82 do not generate employment in these industries, but in

the industries which actually produce those products and services which

are channeled through the two dummy industries. Industry 83, the fictitious scrap industry, is actually not used when tracing the impact of

final demand in industry output and employment since this would imply that

industries would generate output in order to produce scrap to sell to the

scrap industry.

37

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The treatment of government also requires some special explanation.

Industries 78 and 79, Federal and State and local government enterprises

respectively, cover governmental activities which are analogous to commercial activities in that they sell a product or service. Examples are

the Post Office and local transportation agencies. Industry 84 covers

government employment involved in general functions of Federal, State,

and local government (e.g., general administration, teaching, etc.).

Industry 80, gross imports of goods and services, represents U.S.

payments to foreigners for merchandise, services, and factors of production. The treatment of imports in the input-output system has been discussed in chapter I. Industry 86, households, covers the service of

domestics.

Finally, there are three industries which have been modified in the

present report from their treatment in the original input-output table.

Industry 11, new construction, is a single industry in the input-output

table. Because inputs vary considerably for different types of construction, and information is available on these input patterns by type of

construction, the projections for new construction actually have been

developed in considerable detail and then consolidated to a single industry to simplify the presentation in the report.

The second modified industry is industry 74, research and development. It is treated in the basic input-output table as analogous to a

dummy industry which buys all research and development (R&D), wherever

conducted. It then sells this package of R&D to purchasing industries.

The R&D which is done on an independent commercial basis, e.g., in testing laboratories, is also included in this industry. For the purpose of

this study, the R&D industry is redefined so that it is limited to independent commercial establishments. Host R&D is treated as a direct sale

from the producing industry to the purchaser. For example, R&D on military aircrafts by the aircraft industry is sold directly to the Federal

Government.

In the original input-output table, industry 85, rest of the world,

covered U.S. income and product (including Federal Government interest

receipts) originating in the rest of the world; travel receipts from

foreign visitors, and personal remittances-in-kind to foreigners. The

industry has been modified for this study to exclude travel receipts and

personal remittances-in-kind. This adjustment affects the industry detail of the personal consumption expenditures and export sectors. These

adjustments are discussed in the appropriate sections.

In general, the descriptions of methods used to develop the projections of final demand by industry for each component refer to the estimates in the basic 4- and 3-percent unemployment models. The distribution

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of expenditures within each major component or subgroup under the high

durable and high service alternatives is derived by applying the basic

model distribution to the new level of expenditures for each component

in the alternative models.

The tables at the end of this chapter show constant dollar estimates for 1958, 1962, and 1970 and also the percent distribution of the

expenditures for each category of final demand. A primary concern in

this study is the effect the changing composition of final demand and

other factors have on the relative growth and industrial composition of

employment. The discussion of the projections, therefore, emphasizes

the relative change in the distribution of expenditures rather than the

absolute dollar change.

Government Expenditures

The projections of government expenditures are based on analyses

of factors affecting growth in the various governmental functions.

Federal Government expenditures are divided, for this study, into those

for defense (including space exploration) and nondefense. State and local government expenditures are analyzed with reference to these functions: education, highways, public health and sanitation, natural

resources, and other categories.

Each of these functions is initially distributed into three major

items--employee compensation,23/ construction, and all other purchases.

Employee compensation, in constant dollars, is the same as the projected

change in government employment. This is consistent with the assumption

in the national income accounts of no productivity change in the government sector. The construction expenditures are further distributed by

type of construction. The "other purchases" for each function are distributed into detailed requirements based on separate expenditure patterns for each function.

Federal Government. In 1962, total Federal Government expenditures

for goods and services, excluding transfer payments to individuals and

grants to State and local governments, amounted to $60.0 billion (1958

prices). In 1965, total expenditures had declined to $57.1 billion. By

far, the greatest part of this total, about 85 percent, was used to support Federal defense and space programs (Department of Defense, National

23/ In the input-output system of accounts, employee compensation

does not include the payroll of "force accounts" government employees

working on new or maintenance construction. Their payroll is included

as part of the new and maintenance construction expenditures by government .

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Aeronautics and Space Administration, and Atomic Energy Commission).

Only about 15 percent of the expenditures were for the myriad other

activities of the Federal Government.24/

Between 1965 and 1970, Federal Government purchases of goods and

services are projected to increase by about $6.5 billion, to a total of

about $63.5 billion. About half of the increase is projected to be due

to increased expenditures for defense and space programs, the other half

for the remaining programs.

A major part of the increase in nondefense expenditures is related

to antipoverty and health, education, conservation, and welfare programs.

This is reflected in increases for new construction and other purchases

from the private sector; relatively smaller increases are due to increased employment. Nondefense expenditures are slightly higher under

the 3-percent unemployment assumption than under the 4-percent unemployment model. Most of the difference is related to education and health

functions.

The detailed projections of Federal Government expenditures for

goods and services, classified by producing industry and converted to

producers* value in 1958 prices, are shown in tables IV-2 and 3. Comparable data for 1958 and 1962 also are shown. By 1970, compensation of

general government employees (industry 84), both civilian and military,

would account for about 35 percent of total expenditures--about the same

proportion as in 1962 but below that of 1965. New construction (industry 11) is projected to increase from almost 6 percent of the total in

1962 to over 7 percent. For the remaining purchases, the projections

reflect the long-term shift from aircraft to missiles, including the

replacement of existing missiles with more advanced types. The relative

decline in aircraft procurement is offset in part by increased expenditures for missile and space components which are also made by the aircraft industry (industry 60). Expenditures for missiles, space and other

ordnance (including anti-missile missiles) made in industry 13, ordnance

and accessories, are projected to increase as a proportion of total purchases. Purchases from industry 51, computers; industry 57, electronic

components; industry 59, motor vehicles; and industry 77, medical, educational, service and nonprofit organizations are all projected to increase

as a proportion of the total. Purchases from the chemical industry (industry 27), a major supplier of materials to the Atomic Energy Commission,

is projected to decline as a proportion of total expenditures. This results from the decline of this program relative to other Federal Government programs.

24/ These estimates of Federal Government expenditures do not include

current operating expenses of government enterprises such as the Post Office

which sell their services or products and are considered part of the "private" sector in the national income accounts. However, capital expenditures

by government enterprises are included in general government expenditures

for goods and services.

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Two special aspects of the estimates of Federal expenditures should

be noted. One is the previously mentioned modification of industry 74,

research and development, which has been modified so that the purchases

by the Federal Government of research and development are treated as a

direct sale from the producing industry to the purchaser. The 1958

estimates have been modified to reflect this change. Two, in the national

income accounts, food and clothing supplied to the Armed Forces are considered a supplement to the pay of military personnel. The imputed value

of the food and clothing are included as part of the compensation of government employees, classified in industry 84, government industry. The

compensation of government employees is included in total personal income

and the food and clothing supplied to the military are considered as part

of personal consumption expenditures. The direct purchases of these items,

therefore, are not shown as part of the Federal Government bill of goods,

but they are included in personal consumption expenditures.

State and local government. As previously indicated in chapter III,

State and local government expenditures are projected to increase substantially more than Federal Government expenditures for goods and services.

The State and local government expenditures, which amounted to $55.6 billion in 1965 are projected to increase to about $73.5 to $75.5 billion by

1970. The $18 to $20 billion increase in expenditures, in constant

dollar terms, would be about three times as much as the increase in Federal Government expenditures for goods and services over the same period.

Expenditures for education, which accounted for almost 40 percent of

all State and local government expenditures for goods and services in 1965,

are projected to increase substantially over the next 5 years. This reflects the increase in enrollment at all levels of education and particularly in higher education. The increase in expenditures for higher education is due to a number of factors: (a) completion of the educational

cycle as the children born during the early post-World War II years grow

up and increasing numbers go on to college; (b) a higher proportion of

students are expected to finish high school and enter college; and (c) a

continuation of the shift in enrollment from private schools and colleges

to public institutions. Public colleges and universities may be enrolling

about 70 percent of all students in 1970, compared to less than 60 percent

in 1960. A substantial part of the increase in higher education will be

in junior or community colleges.

Elementary and secondary school enrollment is also projected to

increase, but not at as rapid a rate as the enrollment in higher institutions. The estimates do attempt to take account of the impact of the

Head Start Program and the Elementary and Secondary Education Act of 1965.

Education expenditures are higher in the high service model by about $1.5

billion than in the basic models.

239-877 0 - 6 6 - 4

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The next largest category of expenditures, highways, accounts for

almost 20 percent of State and local government expenditures. This category is projected to grow at a somewhat higher rate than in the past,

as the Federal Interstate Highway Program continues through the remainder

of the decade and into the early 1970*s.

Expenditures for public health, hospitals, and sanitation, which

account for about 9 percent of total State and local expenditures, are

projected to increase at a more rapid rate, due in part, to the impact

of Medicare and other Federal aid programs. Much of the recent increases

in hospital and nursing home construction and operation has been in the

private sector. More of this may be undertaken by the public sector during the remainder of the 1960's, however. Here, too, the high service

model implies a higher level of expenditures for this function than in

the basic model.

Expenditures for conservation and natural resources, including parks

and recreation, are projected to continue the very rapid increases witnessed during the period since 1958. Expenditures may be further accelerated if Federal aid programs in these areas are fully implemented.

Functions such as police, fire, and other public administrative

activities will Increase at higher rates than in the past. Population

growth and the continuing rural-urban and suburban shift in population

are the primary reasons.

The projections of the various functions of State and local government, distributed into purchases by producing industry and combined into

a final demand "bill of goods," are shown in tables IV-4 and 5. About

45 percent of the projected total expenditures for goods and services in

1970 is for compensation of government employees. This is a decline from

the 1962 and 1965 ratios, both about 47 percent. New construction would

increase somewhat from 1962, to about 29 percent of total expenditures.

Maintenance construction is projected to decline to 7 percent of the total.

The remaining purchases would account for about 20 percent of the

total. They are broadly distributed among a wide variety of industries,

primarily food, furniture, printing and publishing, chemicals, petroleum

products, motor vehicles, office supplies, and various services. These

services include transportation, telephone, electricity and other utilities, trade, real estate, and business services.

The relatively high proportion of State and local government expenditures that would be accounted for by payrolls and construction (80 percent) is in sharp contrast to Federal Government expenditures for these

purposes, accounting for only about 44 percent of the total.

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The shift in relative importance from Federal to State and local

government expenditures would result in an increasing proportion of total

government expenditures for goods and services going to employee compensation and construction. A smaller share would be accounted for by direct

purchases from other major producing industries in the economy. The impact of this shift is reflected in the employment projections discussed in

the concluding section of the bulletin.

Investment

Residential Construction. Turning to the private domestic investment area, the projection of total residential construction is distributed into types of residential construction, such as single- and multifamily dwellings, etc. Consistent with the projection of increased new

family formation during the latter part of the decade, apartment construction is projected to increase faster than single-family housing.

Nonhousekeeping units (hotels, motels, etc.) will be the fastest growing

element of private residential construction. Its growth over the latter

part of the decade, however, will be somewhat reduced from that during

the earlier years of the decade.

Plant and equipment. Investment in nonresidential plant and equipment is distributed into detailed components by a series of successive

approximations in which the results of alternative approaches are brought

into balance. This approach is followed because the projection of demand

for different types of equipment and construction requires information on

the relative rates of increase among various industries, each with different patterns of capital expenditures. The rate of growth of the steel

industry may be quite different from that of the food industry, and each

industry may require substantially different levels of capital expenditures and types of equipment to provide for expansion of capacity. In

the initial stage of the models, however, the relative changes in industry output and their associated capital expenditures are unknown.

The procedure followed is to develop initial projections of the

various types of equipment, based on past trends and information on prospective demand for some categories of equipment. These projections are

modified later in the models when estimates of industry output requirements, with their implied differential growth rates, are derived. The

growth rates are then used as the starting point for the derivation of

equipment expenditures. The projections of equipment expenditures by

purchasing industry are developed by applying the industry growth rates

to estimated industry capital expenditures for equipment during the recent period. The projected equipment purchases are then converted to

output requirements from capital goods producing industries through the

use of a special capital flow table developed by the Division of Economic

Growth, BLS. The capital flow table shows the detailed distribution of

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capital purchases classified by producing and consuming industries, consistent with the new input-output table.25/ As part of the procedure, the

major changes in capital input patterns are projected to 1970.

The derived projections of equipment expenditures, classified by

producing industry, are then compared to the initial detailed projections

of equipment expenditures. If there are substantial differences between

the two, a new "bill of goods" for plant and equipment expenditures is

developed. This is used as part of a revised sequence of input-output

computations. The projections of capital expenditures developed in this

bulletin reflect several rounds of such successive approximations.26/

A similar procedure is used in the development of projections of

various types of private nonresidential construction.

The detailed "bill of goods" for fixed private domestic investment,

covering private plant and equipment expenditures and residential construction is shown in tables IV-6 and 7. The equipment expenditures are

classified by producing industry. The construction expenditures, although

developed in some detail, are combined into an aggregate estimate for the

purpose of presentation in the final demand tables. However, the detail

is retained in the actual computations used to derive the requirements

for various types of construction materials. The methods used are discussed in chapter V.

Producer durable equipment. As indicated in chapter III, the distribution of total plant and equipment expenditures assumes a continuation of the increase in expenditures for producer durable equipment relative to nonresidential construction. Within the equipment category, the

largest share of expenditures will continue to be made up of motor vehicles (trucks and business use of automobiles). The greatest increase

relative to other types of equipment would be in the projected demand

for computers and office machines (industry 51), which represents a

continuation of past trends. Electrical transmission and distribution

equipment (industry 53), photographic equipment (industry 63), and service industry machines (industry 52) are also projected to increase

relative to other categories. The relative increase in photographic

25/ The capital flow table will be published in a separate report

which will provide a detailed description of the methodology used in

developing the estimates.

26/ The projections of capital expenditures are based, in part, on

preliminary estimates developed by Jack Faucett Associates, Silver Spring,

Md.

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equipment is due in part to the growth in demand for photocopy machines.

Service machine growth reflects expansion of merchandising through vending machines. Metalworking machinery, special industrial machinery, and

general industry machinery (industries 47, 48, and 49) are projected, in

the aggregate, to remain about the same proportion as in recent years.

The modernization of railroad equipment (industry 61) is a major factor

underlying the relative increase in this category of expenditures.

Although increasing in absolute dollar terms, engines and turbines, (industry 43) and farm machinery (industry 44) are projected to follow the

past trend and to decline as proportions of the total expenditures for

equipment.

Wholesale trade (industry 69) and transportation (industry 65),

representing the margin between producers' and purchasers* value are

projected to increase as a proportion of total expenditures for fixed

investment, because of the shift in fixed investment toward equipment

and away from construction, which has no trade or transportation margin.

Nonresidential construction. The projections of nonresidential

construction indicate that public utility construction and, to a lesser

extent, commercial buildings (offices, stores, etc.) will be the main

growth categories over the next 5 years. Within the utility group, electric utility and telephone construction are the main categories showing

growth.

Industrial plant is projected to continue to be the largest single

category of nonresidential construction, but its growth will not be as

rapid as in the past. Other nonresidential construction is projected to

increase only moderately, partly on the basis of the assumption that, for

the major category, education, there will be a shift toward construction

by State and local governments.

Inventory change. Change in inventories, classified by producing

industry, is projected by assuming the inventory change for each industry in 1962 moved with the output change derived by the model. The projected inventory change for each industry does not represent a significant proportion of total output for the industry. For this reason, and

because the method used is admittedly crude, the estimates are not shown

separately; they are included in table IV-8, total private domestic investment .

Personal Consumption

By far, the largest component of final demand is personal consumption expenditures--accounting for about 65 percent of total demand. Expenditures for personal consumption are projected on the basis of over

80 consumption equations or "functions" developed for the individual items

of consumption as shown in the national income and product accounts. The

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consumption functions were developed by Prof. Hendrik Houthakker and

Dr. Lester D. Taylor for the Harvard Economic Research Project, Harvard

University.27/ The estimating equations are based on time series of constant dollar expenditures for the individual items, converted to a per

capita basis, covering the historical period since 1929. The demand

function for each item of expenditure is designed to describe the influence of total purchasing power (as measured by per capita personal

consumption expenditure in constant dollars on all items). It also

measures any other relevant variables, in particular, the price of the

item. In most cases, the demand function is dynamic in the sense that

it allows the effect of a change in any explanatory variable to be distributed over time. Thus, a change in income may not have its full impact on the consumption of housing services until a fairly long adjustment period has elapsed. On the other hand, a change in income may have

a strong temporary effect on the purchase of a durable good. This might

occur when consumers attempt to bring their inventories of that durable

in line with a new level of income. Thus, an increase in income will

initially have a strong impact on durables and a relatively smaller one

on other goods and services.

Both of these phenomena can be captured by the same general form of

estimating equation. This form is one in which per capita consumption

of an item is a function of; (a) past consumption of the item, (b) the

level and change in total consumption of all items, (c) past total consumption, and (d) possibly other variables. This dynamic approach gives

reasonably satisfactory results when applied to data since 1929 (excluding the war years). Total consumption of all items is, by far, the most

important explanatory variable. Relative prices appear in about half of

the equations. In addition, one or two other variables appear in some

of the equations. It is important to note that projections from this

type of behavioral model do not necessarily agree with straightforward

trend extrapolations.

The equations for each of the separate categories of consumer

expenditures are balanced with the projected total consumer expenditures.

This is accomplished by using the elasticities for each of the equations

as the factor for prorating the difference between the sum of the individual consumption equation and the projected total consumer expenditures. The functions and projections derived from these equations have

been reviewed and in some instances modified by the staff of the Division

of Economic Growth. In addition, the projections have been adjusted for

consistency with recent revisions in the historical series on personal

consumption expenditures.

A final stage in the estimating procedure is the conversion of the

projections from groups of products and services to the input-output industry classification system. This is done by a set of conversion factors,

27/ Hendrik Houthakker and Lester D. Taylor, Consumer Demand in the

United States, 1929-1970 (Cambridge, Mass., Harvard University Press,

1966).

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developed by the Office of Business Economics as part of the input-output

study.28/ When an item of personal consumption expenditures consists of

a single commodity, the demand for that item represents demand from a

single input-output industry. This occurs, for example, with the demand

for electricity and gas which in both cases is directly transferable into

demand for the output of an industry defined as "electric, gas, water and

sanitary services." On the other hand, when an item is composed of a

broad group of commodities, it is usually necessary to separate the demand

for that category into demand from several input-output industries. To

illustrate, the demand for the item "shoes and other footwear" must be

distributed among demand from the leather products industry, the rubber

products industry, and imported footwear.

In some instances, the factors used to distribute demand for a category have been modified to take account of the trend in the industrial

composition of individual consumption items. For example, the producing

industry mix of expenditures for food has been modified to reflect the

trend toward more purchases of processed food and less direct purchases

from the agricultural sector. In another instance, consumer demand for

fuel oil and coal--both Included in one consumption item--has been adjusted to reflect the increased demand from the petroleum refining industry and the decline in the demand from the coal mining industry.

In estimating personal consumption expenditures, a different treatment is used for personal remittances-in-kind to foreigners and expenditures of foreign visitors in the United States for food, lodging, entertainment, etc., from that used in the national income accounts and in the

original input-output table. In the latter data, such expenditures are

included in the commodity or industry detail of personal consumption expenditures. However, such expenditures are also included in exports.

To avoid double counting, these remittances and foreign visitor expenditures are deducted in total from personal consumption expenditures. This

lump sum deduction is shown as a negative entry in industry 85, rest of

the world in the original input-output table.

In this study, this deduction is made on an individual industry

basis. This treatment eliminates the need for a single negative entry

in industry 85. The 1958 data have been modified to reflect this change.

The projections are developed initially in purchasers* value and

then, as for all the other categories of final demand, they are converted

to producers* value, based on the 1958 proportions of transportation and

28/ Nancy W. Simon, "Personal Consumption Expenditures in the 1958

Input-Output Study," Survey of Current Business, October 1965, pp. 7-20, 28.

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trade margins. The margins are aggregated and included as separate

purchases from the trade and transportation industries in the final

demand "bill of goods" for personal consumption. In some instances,

the 1958 margins have been modified to reflect more recent information.

The projections of consumer demand, classified by producing industry,

are shown in tables IV-9 to 11.

In order to put the projections of personal consumption expenditures

into broader historical perspective, they have been aggregated to the

level of detail usually shown in the national income constant dollar

table for personal consumption expenditures. The table shows consumption

expenditures for three major groups--durables, nondurables, and services--

and 11 subgroups. The estimates of expenditures are in purchasers* value,

whereas the input-output "bill of goods" is in producers* value, with the

trade margins and transportation charges shown separately. The estimates

(see table IV-10) cover selected years during the postwar period and the

1970 projections.

The comments which follow are based on both the consolidated table

and the more detailed ,fbill of goods" table for personal consumption

expenditures.

During most of the postwar period, as income per capita increased,

the composition of consumption expenditures has been changing. An increasing proportion of the total has been going to services, particularly

housing. This is associated with a secular decline in the proportion

accounted for by nondurable expenditures, e.g., food and clothing. Expenditures for durables, the most volatile element in total consumer demand, have varied, with no evidence of any long-term trend. Within the

past few years, durable expenditures, particularly for automobiles, have

begun to increase as a proportion of total consumption expenditures.

In general, the basic model projections show a continuation of past

trends. Expenditures for services increase from 38.5 percent of total

consumer demand in 1965 to about 40 percent in 1970. Durable goods increase somewhat, from 16.6 to 16.9 percent. The downward trend in nondurable goods is projected to persist, declining from about 45 percent

in 1965 to 43 percent in 1970.

Within these aggregates, however, there are varying trends with

important implications for differential impact on industry employment.

The decline in the proportion of nondurable expenditures is the

result of the projected drop in the share of food and clothing, which

more than offsets relative increases in purchases of gasoline and "other

nondurables." Major components of the "other" group are drugs and cosmetics and semidurable house furnishings. These are expected to increase

their share of total consumption expenditures.

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The small increase in the proportion of durable expenditures also

reflects the net impact of divergent trends. Automobile expenditures,

although continuing to increase in absolute dollar terms, are projected

to decline from the very high proportion reached in 1965. However, expenditures for furniture, household appliances, color television sets,

and other consumer durables are projected to increase sufficiently to

raise somewhat the share of total durables.

The services aggregate covers the most heterogeneous group of activities, including housing, transportation, medical services, laundries,

and private education. The housing portion of the total, consisting of

space rental values, is projected to increase. This is consistent with

the increases in the home-oriented expenditures in the other expenditure

classes. The small increase in the household operation portion obscures

the substantial rise projected in the share of electricity, gas, and

telephone, because it also includes a projected decline in the domestic

service ratio. In transportation, the decline in the historical trend

is expected to be reversed. Increasing air travel and certain automobileassociated costs included in services are expected to overcome the effect

of declines in expenditures for other forms of transportation.

An important element of the "other services" group is composed of

several types of expenditures concerned with medical care. The projections for these generally follow the pattern of large increases in constant dollar expenditures for hospital care and medical insurance in

recent years. The share of personal services in total consumer demand

is projected to decline, while expenditures for recreation and private

education will increase.

Because of the continued shift away from goods and toward services

in the basic models, trade and transportation associated with the handling of consumer goods are projected to decline somewhat, as a proportion

of total consumer demand.

In interpreting the results summarized above, two considerations

should be kept in mind: one, the observations refer to the changing share

of individual items in total consumption expenditures--not to changes in

the dollar level of expenditures; two, the differential changes reflect

constant dollar estimates.

It should be noted that the projections of consumption expenditures

in the basic 4- and 3-percent unemployment models are based on the estimating equations for the 82 individual items of consumption. The consumption estimates for the high durable and high service alternatives are

derived by applying the consumption patterns within the three major groups--

durables, nondurables, and services--developed in the basic models--to new

levels of expenditures for the three groups in the alternative models.

There is one modification, however. The high service model provides for

more than proportionate increases in private educational and medical

services.

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Net Exports

The detailed projections of exports and imports of goods and services are derived by distributing into input-output industry detail the

estimates made by the Office of Business Economics for seven major categories .29/

The distribution of estimates for the seven major categories into

approximately 80 industries was made on the basis of 1958-65 trends and

a review of the shifts in the relationship of specific imports and exports

to domestic production during this period.

The estimates for intermediate imports, however, are left undistributed, because the input-output relationships contain coefficients for

imports of intermediate goods. Therefore, these relationships generate

their own requirements for imports. These derived import estimates are

compared with the intermediate imports incorporated in the initial final

demand ''bill of goods." If there are major differences, import coefficients or the level of projected imports may be modified. The computations are repeated until the generated and estimated imports are in

balance.

The 1970 projections of U.S. exports and imports suggest that the

ratio of net exports (gross exports less gross imports) of goods and

services to the gross national product would be moderately higher than

those of most recent years. It would be about equal to the high ratio

of 1964. Gross exports in 1970 may be expected to constitute about the

same share of GNP as in 1965, while the import proportion may be lower.

The anticipated greater expansion in exports than in imports is based on

(a) the assumption of continued competitiveness of U.S. products in world

markets, (b) the return to a relatively higher rate of growth in foreign

countries than in the past few years resulting in increased imports from

the United States, and (c) the continued shift in the United States toward services and away from goods, requiring less imports.

The merchandise and nonmerchandise components of the net export

balance are likely to increase at about the same rate from 1965 to 1970.

The net merchandise export balance may account for about two-thirds of

the total balance in 1970, about the same as in 1965. The merchandise

share of the overall balance, however, has moved steadily downward since

1959, and was at a low point in 1965.

The net export balance on nonmerchandise transactions stems largely

from increased royalty receipts and income from investments abroad. It

has accounted for an increasing proportion of the total export balance

in recent years and may be expected to hold at the 1965 share in 1970--

about one-third of the total.

29/ Evelyn M. Parrish, op. cit., p. 34.

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Industry structure of exports. The projected industry composition

of gross exports indicates that products of manufacturing industries in

1970 may be expected to account for a greater proportion of total exports.

It is projected to be nearly 50 percent, compared with about 45 percent

in 1962. Computers, aircraft, and communications and scientific instruments are projected to show the greatest rate of increase from 1962 to

1970. Engines and machinery, particularly metalworking machines may also

bulk large in 1970 exports. Foreign sales of nondurable manufactured

commodities and agricultural products and services are estimated to expand at a slower pace. Mining products are expected to consist of about

the same share of total exports as in 1962.

Industry structure of imports.30/ Changes in the 1970 projected

industry composition of imports of goods and services from those in 1962

generally parallel those outlined for exports. However, imports of nondurable manufactured products (except food) and durable commodities are

also expected to expand significantly. Imports of agricultural products

and processed food in 1970 make up a smaller portion of the total than

in 1962.

Among the durable manufacturing industry sectors, imports of automobiles and other transportation equipment, steel, radios, television

sets, and lumber are expected to increase their share of total Imports

in 1970. Advances in the nondurable sector (excluding food) are fairly

widespread over a number of industries. Changes in the share of total

imports for any individual industry are expected to be small.

Payments to foreign freight carriers are expected to rise sharply

from 1962 to 1970. They constitute the principal change anticipated in

imports of services.

Imports assigned to final demand sectors are estimated to account

for a smaller share of total imports in 1970 than in 1962. The projected decline in purchases abroad by the Department of Defense, the Atomic

Energy Commission (for uranium), and other Federal Government agencies

more than offset the sizable expansion in personal consumption expenditures on imported goods and services, including those on foreign travel.

The reduction in defense expenditures abroad assumes that there is no

major military action in 1970.

30/ Imports discussed here cover both types: (a) those "directly allocated" to the consuming industry or final demand categories; and (b)

"transferred" types assigned to domestic industries producing goods and

services for which these imports are substitutes.

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Import coefficients. The 1970 projections of input-output relationships are discussed in the following chapter. The projections for import

coefficients— industry requirements for imports per dollar of output-are

discussed in this section, since they are related to the analysis of 1970

imports.

The 1970 estimates of import coefficients are based on a review and

analysis of past trends in the relationships of imports to domestic output. Changes from 1962 to 1970 are generally small except in a few industries. The principal coefficient changes are described below.

The projected lower import coefficient in the agricultural sector

in 1970 stems from the sharp reduction in the use of foreign farm workers. Imports of fishery products are estimated to constitute an increasing portion of total supplies in 1970, but the rate of increase is expected to be somewhat less than from 1958-62.

In the mining sector, imports of iron ore are likely to be a slightly

lower share of total output in 1970 than in 1962 (but much higher than

in 1958) as processed low-grade domestic ore becomes available in increased quantities. The requirements of the chemical and fertilizer mineral

mining industry for imported sulphur, potash, and similar materials, however, are likely to be somewhat greater in 1970 than in the recent past.

Projected increases in the relationship of imports to total output

in the manufacturing area are significant in four industries— lumber, industrial leather, aircraft, and farm machinery. The higher import coefficient in lumber (including plywood) is linked to the anticipated large

rise by 1970 in residential construction, which accounts for about threefourths of total U.S. lumber consumption. Imports of lumber, continuing

past trends, may be expected to constitute an increased share of total

supply by 1970, as domestic requirements expand sharply.

In industrial leather, the projected continued sluggishness of domestic output led to greater reliance on imported supplies and to continued substitution of rubber, plastics, and other fabrics for leather.

In addition, demand for imported specialty leather— calf, kip, goat,

etc.— is expected to display further growth to 1970.

Similarly, the higher import coefficient projected for the aircraft

industry in 1970 reflects a moderate increase in imports and stability

in the industry's output. Exports of aircraft, however, are projected

to expand rapidly. The net export balance may, therefore, be considerably higher in 1970 than in either 1958 or 1962. These foreign trade

data relate primarily to civilian aircraft. However, nearly three-fifths

of the output of this industry consists of military aircraft. Production

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53

of the latter is expected to drop as military expenditures shift from

aircraft to missiles. This is the primary factor behind the projected

slight decline in output of this industry from 1962 to 1970. Thus, a

higher import coefficient is based on imported civilian aircraft's relationship to domestic output of civilian and military aircraft.

The import coefficient for farm machinery in 1970 continues the

slow upward trend evident from 1958-1962. Component parts from U.S.-

owned plants in Canada and the United Kingdom may be imported in increased quantities for incorporation in final products produced domestically.

Net Export "Bill of Goods"

The "bill of goods” for net exports is shown in table IV-12. The

detailed entries reflect gross exports of goods and services from each

producing industry. Consistent with the treatment of imports in the

input-output table, gross imports for intermediate and final demand sectors are shown only in the aggregate as a negative entry in industry 80,

imports.

Supplementary estimates of purchases by the final demand sectors of

imported goods and services, such as bananas and other types of food,

liquor, apparel, household appliances, foreign travel, etc., are shown

in the aggregate as purchases from imports in the "bill of goods" for

consumption expenditures in tables IV-9 and 11. Military expenditures

abroad are shown in the aggregate as purchases from imports in the distribution of Federal Government purchases, tables IV-2 and 3.

Intermediate imports of specific categories of materials, products,

and services are generated by the models through the use of the import

coefficients previously discussed. They are not shown separately in the

tables, but are included as part of total imports. They are deducted

from total exports in order to derive the net export estimate.

In this study, as previously mentioned, the detailed export estimates differ in their treatment of personal remittances-in-kind to foreigners and expenditures by foreigners in the United States, from that

shown in the original 1958 input-output table. In that table, such exports are shown only in total in industry 85, rest of the world. In

this study, such exports are distributed among the individual producing

industries and deducted from industry 85. The original 1958 data have

been revised to incorporate these modifications.

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Total Final Demand

The last stage in the development of the final demand projections

is the consolidation of the detailed projections for each component of

final demand into a single "bill of goods" covering total final demand.

The total "bill of goods" is shown in tables IV-13 and 14. The detailed

final demand projections, as shown in these tables, are used along with

the industry employment table to derive 1970 employment requirements.

In addition to providing an important element in the whole sequence

of projections leading up to the employment estimates, the final demand

estimates are useful in themselves. They provide information on the

changing structure of final demand.

Analysis of changing patterns of final demand may be obscured, however, by the large amount of detail shown in the total "bill of goods"

tables. In order to highlight the major changes in the composition of

final demand, the detailed estimates have been aggregated into broad

sector detail as shown in table IV-15. In addition, in order to provide

some indication of developments since 1962 (the last year for which a

detailed set of final demand estimates are available), preliminary estimates of final demand for 1965 have been developed and are also included

in this table.

The summary tables include an adjustment for imports which needs to

be clarified. GNP excludes the value of all imports. Final demand expenditures for various goods and services, however, implicitly include

the value of all intermediate imports embodied in final products (e.g.,

imported iron ore used ultimately to make automobiles). They explicitly

cover those imports which are directly allocated to final demand (e.g.,

imported shoes). In order to balance out to the total GNP, the aggregate

value of all imports is shown as a negative item at the bottom of the

table.

Finally, in evaluating the changes in the percentage distribution

of final demand (see tables IV-14 and 15), it should be kept in mind

that relatively small changes may represent substantial differences in

absolute dollar terms.

Specifically, with potential final demand in 1970 equal to $750-

$760 billion, an increase in an industry*s share of GNP by only 1 percent,

e.g., from 10 percent in 1965 to 11 percent in 1970 would add $7.5 billion

more to the final demand for that industry*s output than it otherwise

would have been. An increase in the share of only one-tenth of 1 percent

is equivalent to an extra three-quarters of a billion dollars. With this

caution regarding seemingly small changes in the industrial distribution

of final demand, what do the tables show?

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Industrial composition of final demand. The change in the industrial composition of total final demand reflects the combined influence

of two factors: (2) the change in the relative importance of consumption,

investment, and the other components of final demand; and (b) the shift

in the composition of expenditures within each component of final demand.

The analysis which follows, on the changing industrial composition

of the total "bill of goods," takes into account both of these factors.

The analysis is based primarily on the summary tables, because it provides a more recent reference point. It also highlights the major changes

in the industrial distribution of final demand.

Basic models. Direct purchases by final demand categories from the

agricultural and mining sectors account for a very small proportion of

total final demand. Their share is projected to decline even further by

1970. The decline in the share of final demand by these two sectors is

due to the relative decline in the projected exports of agricultural and

mining products as a proportion of potential GNP. In addition, both sectors are affected by the continuing relative decline in direct consumer

demand for the output of these sectors, particularly mining (coal).

The construction sector has been declining as a proportion of final

demand in the recent past. It has been estimated in the basic models,

however, that construction will increase its share of final demand, from

about 11.3 percent in 1965 to about 11.7 percent in 1970. This increase

in the construction sector's portion comes largely from the projected

increase in demand for new construction by the public sector. Private

demand is expected to have only a moderate influence in the construction

industry's share.

The manufacturing share, which constituted over 38 percent of final

demand in 1965, is projected to decline to slightly above 37 percent in

1970, distributed almost equally between durable and nondurable goods.

The decline in the durable goods share is due largely to the relative

decline in Federal Government purchases of durable goods and the relative

decline in the change in durable goods inventories from the very high ratio in 1965.

Within the durable goods share of final demand, there are divergent

changes in the composition of demand. (See table IV-15.) For example,

the demand for office and computing machines, industry 51, and for radio,

television, and communications equipment, industry 56, is estimated to

increase substantially relative to other categories of durable products.

The relative decline in expenditures for military aircraft is projected

to more than offset the increase in civilian aircraft.

The decline in the nondurable goods share primarily represents a

continuation of the long-term decline in the proportion of the consumer

dollar expenditure for food and apparel.

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Transportation accounts for only a small part of total final demand,

about 3 percent. Its share does not change in direct proportion to the

change in final demand for goods, because it is related to the transportation of persons as well as goods. In fact, the share of transportation

in all the models is about the same, because of roughly offsetting changes

in personal transportation and the transportation of goods.

On the other hand, activity in trade, which accounts for nearly 15

percent of total final demand, is almost entirely related to the handling of goods. In the basic model, it declines as a proportion of the

total) corresponding to the reduction in the share accounted for by the

demand for manufactured products.

Communications and public utilities, finance and insurance, real

estate (housing), and other services are all projected to increase their

share. The primary reason being an increase in consumer demand for the

output of these sectors. In the aggregate, the increase in these sectors

is from almost a quarter of total GNP in 1962 to more than 26 percent in

1970.

General government, which represents the constant dollar compensation of government employees (excluding Post Office, local transit operations, and other "enterprises” activities) is projected to continue to

decline as a proportion of total final demand. This is consistent with

the earlier projection (table II-l) that the compensation of general

government employees (in constant dollars) would Increase about 3.2 to

3.5 percent a year between 1965 and 1970, whereas the GNP (total final

demand) is projected to increase about 4.3 to 4.5 percent a year.

Final demand imports as well as total imports are projected to

decline from their relatively high proportions in 1965.

Alternative models. The alternative models do introduce variations

in the sector mix of final demand, particularly in construction; durable

manufacturing; trade; finance, insurance and real estate; and other services (which include personal and business services, private educational

and medical services).

The high durable alternative assumes continuation, with some moderation, of the recent high rates of increase for consumer durables and investment in plant and equipment. Thus, in this model, the greatest variation from the basic 4-percent model would be in durable goods manufacturing. The difference between the models (18.4 percent for the basic

model compared with 19.5 percent for the alternative) amounts to a full

percentage point of final demand. This is equivalent to about $7.5 billion or an average annual rate of increase between 1965 and 1970 of 3.7

percent a year in the basic 4-percent model to 4.9 percent a year in the

high durable model.

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The shares of construction and trade are also increased, but proportionately less than for durable manufacturing. The increase for

construction is dampened by the fact that residential construction and

construction expenditures by government are kept at the same levels in

the basic 4-percent and high durable models. The increase in the share

for trade is also moderated since trade involves the handling of both

durable and nondurable goods, even though, in this instance, the share

of nondurable goods remains the same in both models.

The increases for construction, durable manufacturing, and trade in

the high durable model are offset by relative declines in the share of

final demand for the output of communications and public utilities, finance and insurance, real estate (primarily housing), and other services.

Transportation has about the same share, resulting from offsetting changes

in the transportation of goods and of persons.

The government constant dollar payroll share increases somewhat in

the high service model, with all the increase in State and local government .

The high service model assumes a relative decline in investment in

plant and equipment and relative increases in services. Consumer durables are assumed to maintain about the same share as in the basic model.

The pattern of demand under the high service model reduces the construction and durable manufacturing proportions considerably below the high

durable model. However, these proportions are only moderately below those

of the basic model.

Trade is also reduced relative to the high durable model, but it

remains about the same proportion as in the basic model. This is due to

the fact that consumer durables are not reduced below their share in the

basic model, and nondurable manufacturing maintains a stable proportion.

The major increases In services are in private medical and educational services. There are relatively smaller increases in communications and public utilities, housing, and public educational and medical

services.

239-877 0 - 6 6 - 5

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Table IV-1.

Industry number and title

AGRICULTURAL, FORESTRY, AND FISHERIES:

1 Livestock and livestock products........

2 Other agricultural products

3 Forestry and fishery products...............

4 Agricultural,forestry,and fishery services..

MINING:

5 Iron and ferroalloy ores raining.............

6 Nonferrous metal ores mining................

7 Coal mining...................................

8 Crude petroleum and natural gas.............

9 Stone and 'clay mining and quarrying.........

10 Chemical and fertilizer mineral mining.....

CONSTRUCTION:

11 New construction.............................

12 Maintenance and repair construction.........

MANUFACTURING:

13 Ordnance and accessories.....................

14 Food and kindred products....................

15 Tobacco manufactures.........................

16 Broad and narrow fabrics,yarn and thread

mills.

17 Miscellaneous textile goods and floor

coverings.

18 Apparel.......................................

19 Miscellaneous fabricated textile products...

20 Lumber and wood products,except containers..

21 Wooden containers............................

22 Household furniture..........................

23 Other furniture and fixtures................

24 Paper and allied products,except containers

and boxes.

25 Paper board containers and boxes..... ......

26 Printing and publishing.....................

27 Chemicals and selected chemical products....

28 Plastics and synthetic materials............

29 Drugs,cleaning,and toilet preparations.....

30 Paints and allied products..................

31 Petroleum refining and related industries...

32 Rubber and miscellaneous plastics products..

33 Leather tanning and industrial leather

products.

34 Footwear and other leather products.........

35 Glass and glass products.....................

36 Stone and clay products......................

37 Primary iron and steel manufacturing........

38 Primary nonferrous metals manufacturing....

39 Metal containers.............................

40 Heating,plumbing,and fabricated structural

metal products.

41 Screw machine products,bolts,nuts,etc., and

metal stampings.

42 Other fabricated metal products.............

43 Engines and turbines.........................

44 Farm machinery and equipment................

45 Construction,mining,oil field machinery and

equipment

46 Materials handling machinery and equipment..

Industry Numbering for the 1958 Input-Output Study

Related SIC

codes

(1957 edition)

Industry number and title

Related SIC

codes

(1957 edition)

013,part 014,

0193,part 02,

part 0729

011,012,part

014,0192,0199,

part 02

074,081,082,

084,086,091

071,0723,part

0729,085,098

1011,106

102-105,108,

109

11,12

1311,1321

141,142,144,

145,148,149

147

138,part 15,

part 16,part

17,part 6561

Part 15,part

16,part 17

19

20 

21

221-224,226,

228

227,229

225,23(except

239),3992

239

24(except 244)

244

251

25(except 251)

26(except 265)

265

27

281(except

alumina part

of 2819),

286,287,289

282

283,284

285

29

30

311,312

31(except 311,

312)

321-323

324-329

331,332,3391,

3399

2819(alumina

only),

333-336,3392

3411,3491

343,344

345,346

342,347-349

(except 3491)

351

352

3531-3533

3534-3537

47 Metalworking machinery and equipment.........

48 Special industry machinery and equipment....

49 General industrial machinery and equipment...

50 Machine-shop products.........................

51 Office,computing and accounting machines.....

52 Service industry machines........ .......... .

53 Electric transmission and distribution equipment,and electrical industrial apparatus.

54 Household appliances..........................

55 Electric lighting and wiring equipment.......

56 Radio,television,and communication equipment.

57 Electronic components and accessories.... .

58 Miscellaneous electrical machinery.equipment

and supplies.

59 Motor vehicles and equipment.... ............

60 Aircraft and parts............................

61 Other transportation equipment...............

62 Professional,scientific,and controlling

instruments and supplies.

63 Optical,ophthalmic,and photographic equipment and supplies.

64 Miscellaneous manufacturing...................

TRANSPORTATION.COMMUNICATION.ELECTRIC,

GAS,SANITARY SERVICES:

65 Transportation and warehousing...............

66 Communications,except radio and television

broadcasting.

67 Radio and television broadcasting............

68 Electric,g as,water,and sanitary services....

WHOLESALE AND RETAIL TRADE:

69 Wholesale and retail trade....................

FINANCE,INSURANCE.AND REAL ESTATE:

70 Finance and insurance..................

71 Real estate and rental.................

SERVICES:

72 Hotels and lodging places;personal and repair

services.except automobile repair.

73 Business services.

74 Research and development............ ......

75 Automobile repair and services............

76 Amusements..................................

77 Medical.educational services and nonprofit

organizations.

GOVERNMENT ENTERPRISES:

78 Federal Government enterprises............

79 State and local government enterprises....

IMPORTS:

80 Gross imports of goods and services......

DUMMY INDUSTRIES:

81 Business travel,entertainment,and gifts...

82 Office supplies............................

83 Scrap, used and secondhand goods..........

SPECIAL INDUSTRIES:

84 Government industry........................

85 Rest of the world................. ........

86 Household industry......................... 87 Inventory valuation adjustment...................

354

355

356

359

357

358

361,362

363

364

365,366

367

369

371

372

373-375,379

381,382,384,

387

383,385,386

39(except 3992)

40-42,44-47

481,482,489

483

49

50(except manufacturers

sales offices),

52-59,part 7399

60-64,66,67

65(except 6541

and part 6561)

70,72,76

(except 7694

and 7699)

6541,73(except

7361,7391 and

part 7399),

7694,7699,81,

89(except 8921)

75

78,79

0722,7361,80,

82,84,86,8921

NOTE: The industry titles in this table are full and

complete titles of the respective sectors in the 1958 Office

of Business Economics input-output system and are consistent

with the sectors in the Interagency Growth Project. In other

tables in this report, however, some sector titles have been

shortened for space and presentation purposes.

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(Millions of 1958 dollars)

Table IV-2. Industrial Composition of Purchases by Federal Government

1958, 1962, and Projected 1970

Industry number and title 1958 -1 1962

Projected 1970

3 percent

unemployment 4 percent unemployment

Basic

model

Basic

model

High 2/

durables

High 3/

services

1. Livestock and livestock products..................... -3 5 8 8 8 8

2. Other agricultural products........................... 1,073 205 11 11 11 11

3. Forestry and fishery products......................... -137 -107 -250 -250 -250 -250

4. Agricultural, forestry and fishery services.......... 45 38 71 71 71 71

5. Iron and ferroalloy ores mining....................... - - - - - -

6. Nonferrous metal ores mining.......................... 192 283 200 196 196 196

7. Coal mining............................................ - 56 45 45 45 45

8. Crude petroleum and natural gas....................... 1 - - - - -

9. Stone and clay mining and quarrying.................. 10 - - - - -

10. Chemical and fertilizer mineral mining............... 11 2 3 3 3 3

11. New construction....................................... 3,388 3,448 4,701 4,701 4,701 4,701

12. Maintenance and repair construction.................. 1,081 1,204 1,504 1,504 1,504 1,504

13. Ordnance and accessories.............................. 3,329 3,824 4,770 4,770 4,770 4,770

14. Food and kindred products............................. 55 269 381 372 372 372

15. Tobacco manufactures.................................. - - - - - -

16. Broad and narrow fabrics, yarn and thread mills..... 51 34 34 34 34 34

17. Miscellaneous textile goods and floor coverings..... 5 10 10 10 10 10

18. Apparel................................................ 41 71 104 103 103 103

19. Miscellaneous fabricated textile products............ 103 77 75 74 74 74

20. Lumber and wood products, except containers.......... -6 -6 -5 -5 -5 -5

21. Wooden containers...................................... 2 12 13 13 13 13

22. Household furniture.................................... 25 42 48 48 48 48

23. Other furniture and fixtures.......................... 26 69 83 81 81 81

24. Paper and allied products, except containers......... 72 54 69 67 67 67

25. Paperboard containers and boxes....................... 5 88 27 27 27 27

26. Printing and publishing............................... 92 176 204 202 202 202

27. Chemicals and selected chemical products............. 824 678 570 567 567 567

28. Plastics and synthetic materials...................... 13 32 6 6 6 6

29. Drugs, cleaning, and toilet preparations............. 150 222 260 252 252 252

30. Paints and allied products............................ 3 13 25 23 23 23

31. Petroleum refining and related Industries............ 745 912 1,032 1,032 1,032 1,032

32. Rubber and miscellaneous plastics products........... 130 70 122 122 122 122

33. Leather tanning and industrial leather products..... - - - - - -

34. Footwear and other leather products.................. 23 69 13 12 12 12

35. Glass and glass products.............................. 3 - - - - -

36. Stone and clay products............................... 5 3 4 4 4 4

37. Primary iron and steel manufacturing................. 118 116 114 113 113 113

38. Primary nonferrous metals manufacturing.............. 343 46 45 44 44 44

39. Metal containers....................................... 18 20 21 21 21 21

40. Heating, plumbing and structural metal products..... 17 304 324 324 324 324

41. Stampings, screw machine products and bolts.......... 94 79 100 97 97 97

42. Other fabricated metal products....................... 132 194 219 218 218 218

43. Engines and turbines................................... 288 220 234 233 233 233

44. Farm machinery and equipment.......................... 17 11 12 12 12 12

45. Construction, mining and oil field machinery......... 84 143 128 127 127 127

See footnotes at end of table.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
6o

(Millions of 1958 dollars)

Table IV-2. Industrial Composition of Purchases by Federal Government

1958, 1962, and Projected 1970--Contlnued

Industry number and title 1958 - 1962

Projected 1970

3 percent

unemployment

4 percent unemployment

Basic

model

Basic

model

High 2/

durables

High 3/

services

46. Materials handling machinery and equipment........... 139 144 128 128 128 128

47. Metal working machinery and equipment................ 273 227 263 262 262 262

48. Special industry machinery and equipment............. 33 35 25 24 24 24

49. General Industrial machinery and equipment........... 203 237 203 203 203 203

50. Machine shop products.................................. 44 51 38 38 38 38

51. Office, computing and accounting machines............ 87 212 344 344 344 344

52. Service industry machines............................. 73 34 38 37 37 37

53. Electric industrial equipment and apparatus.......... 351 245 240 240 240 240

54. Household appliances................................... 171 17 19 19 19 19

55. Electric lighting and wiring equipment............... 89 19 20 12 12 12

56. Radio, television and communication equipment........ 1,770 3,190 3,772 3,771 3,771 3,771

57. Electronic components and accessories................ 375 524 635 635 635 635

58. Miscellaneous electrical machinery and supplies..... 113 62 66 65 65 65

59. Motor vehicles and equipment.......................... 490 562 831 826 826 826

60. Aircraft and parts..................................... 8,047 8,456 7,892 7,892 7,892 7,892

61. Other transportation equipment........................ 655 943 976 974 974 974

62. Scientific and controlling instruments............... 658 815 767 762 762 762

63. Optical, ophthalmic and photographic equipment....... 168 123 140 140 140 140

64. Miscellaneous manufacturing........................... 41 57 37 36 36 36

65. Transportation and warehousing........................ 1,439 1,834 1,700 1,693 1,693 1,693

66. Communications; except broadcasting.................. 169 354 431 425 425 425

67. Radio and television broadcasting..................... - 3 2 2 2 2

68. Electric, gas, water and sanitary services........... 348 486 539 535 535 535

69. Wholesale and retail trade............................ 645 989 1,120 1,113 1,113 1,113

70. Finance and insurance................................. 1 30 46 46 46 46

71. Real estate and rental................................ 112 621 713 708 708 708

72. Hotels; personal and repair services, except auto.... 246 297 372 364 364 364

73. Business services...................................... 492 1,019 1,034 1,032 1,032 1,032

74. Research and development.............................. 372 344 390 390 390 390

75. Automobile repair and services........................ 129 108 151 148 148 148

76. Amusements............................................. 18 40 52 52 52 52

77. Medical, educational and nonprofit organizations.... 654 697 1,209 1,209 1,209 1,209

78. Federal Government enterprises........................ 56 49 62 60 60 60

79. State and local government enterprises............... 113 210 255 247 247 247

80. Gross Imports of goods and services.................. 2,717 2,799 2,430 2,430 2,430 2,430

81. Business travel, entertainment and gifts............. - - - - - -

82. Office supplies........................................ 74 Ill Ill 109 109 109

83. Scrap, used and secondhand goods...................... 117 196 - - - -

84. Government Industry.................................... 19,951 21,184 22,014 21,987 21,987 21,987

85. Rest of the world Industry............................ -307 -895 -750 -750 -750 -750

86. Household Industry..................................... - - - - - -

87. Inventory valuation adjustment........................ - - - - - -

Total................................................. 53,594 60,010 63,650 63,500 63,500 63,500

Federal Government have been changed to conform with the treatment of research and development (1962 and 1970).

2/ The high durable model assumes continuation of above

average Increases In expenditures for consumer durables and

fixed nonresidentlal Investment.

3/ The high service model assumes a lower than average

Increase In consumer durables and fixed nonresidentlal Investment with the difference made up by Increases In consumer and

NOTE: Because of rounding, sums of Individual Items may not

equal totals.

SOURCE: Data for 1958 are from the U.S. Department of

Commerce, Office of Business Economics, Survey of Current Business

September 1965. The year 1962 and 1970 projections are estimated

by the U.S. Department of Labor, Bureau of Labor Statistics.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
61

(Percent distribution)

Table IV-3. Industrial Composition of Purchases by Federal Government

1958, 1962, and Projected 1970

Industry number and title 1958 1962

Projected 1970

3 percent

unemployment

4 percent unemployment

Basic

model

Basic

model

High 1/

durables

High 2/

services

1. Livestock and livestock products...................... -.01 .01 .01 .01 .01 .01

2. Other agricultural products........................... 2.00 .34 .02 .02 .02 .02

3. Forestry and fishery products......................... -.26 -.18 -.39 -.39 -.39 -.39

4. Agricultural, forestry and fishery services.......... .08 .06 .11 .11 .11 .11

5. Iron and ferroalloy ores mining....................... - - - - - -

6. Nonferrous metal ores mining.......................... .36 .47 .31 .31 .31 .31

7. Coal mining............................................ - .09 .07 .07 .07 .07

8. Crude petroleum and natural gas....................... - - - - - -

9. Stone and clay mining and quarrying.................. .02 - - - - -

10. Chemical and fertiliser mineral mining............... .02 - - - - -

11. New construction....................................... 6.32 5.75 7.39 7.40 7.40 7.40

12. Maintenance and repair construction.................. 2.02 2.01 2.36 2.37 2.37 2.37

13. Ordnance and accessories.............................. 6.21 6.37 7.49 7.51 7.51 7.51

14. Food and kindred products............................. .10 .45 .60 .59 .59 .59

15. Tobacco manufactures................................... - - - - - -

16. Broad and narrow fabrics, yarn and thread mills..... .10 .06 .05 .05 .05 .05

17. Miscellaneous textile goods and floor coverings..... .01 .02 .02 .02 .02 .02

18. Apparel................................................. .08 .12 .16 .16 .16 .16

19. Miscellaneous fabricated textile products............ .19 .13 .12 .12 .12 .12

20. Lumber and wood products, except containers.......... -.01 -.01 -.01 -.01 -.01 -.01

21. Wooden containers...................................... - .02 .02 .02 .02 .02

22. Household furniture.................................... .05 .07 .08 .08 .08 .08

23. Other furniture and fixtures.......................... .05 .11 .13 .13 .13 .13

24. Paper and allied products, except containers......... .13 .09 .11 .11 .11 .11

25. Paperboard containers and boxes....................... .01 .15 .04 .04 .04 .04

26. Printing and publishing........... .................... .17 .29 .32 .32 .32 .32

27. Chemicals and selected cheaiical products............. 1.54 1.13 .90 .89 .89 .89

28. Plastics and synthetic materials...................... .02 .05 .01 .01 .01 .01

29. Drugs, cleaning, and toilet preparations............. .28 .37 .41 .40 .40 .40

30. Paints and allied products............................ .01 .02 .04 .04 .04 .04

31. Petroleum refining and related industries............ 1.39 1.52 1.62 1.63 1.63 1.63

32. Rubber and miscellaneous plastics products........... .24 .12 .19 .19 .19 .19

33. Leather tanning and industrial leather products..... - - - - - -

34. Footwear and other leather products.................. .04 .11 .02 .02 .02 .02

35. Glass and glass products.............................. .01 - - - - -

36. Stone and clay products............................... .01 - .01 .01 .01 .01

37. Primary iron and steel manufacturing................. .22 .19 .18 .18 .18 .18

38. Primary nonferrous metals manufacturing.............. .64 .08 .07 .07 .07 .07

39. Metal containers....................................... .03 .03 .03 .03 .03 .03

40. Heating, plumbing and structural metal products..... .03 .51 .51 .51 .51 .51

41. Stampings, screw machine products and bolts.......... .18 .13 .16 .15 .15 .15

42. Other fabricated metal products....................... .25 .32 .34 .34 .34 .34

43. Engines and turbines................................... .54 .37 .37 .37 .37 .37

44. Farm machinery and equipment.......................... .03 .02 .02 .02 .02 .02

45. Construction, mining and oil field machinery......... .16 .24 .20 .20 .20 .20

See footnotes at end of table.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
62

Table IV-3. Industrial Composition of Purchases by Federal Government

1958, 1962, and Projected 1970--Continued

(Percent distribution)

Industry number and title 1958 1962

Projected 1970

3 percent

unemployment

4 percent unemployment

Basic

model

Basic

model

High 1/

durables

High 2/

services

46. Materials handling machinery and equipment........... .26 .24 .20 .20 .20 .20

47. Metalworking machinery and equipment................. .51 .38 .41 .41 .41 .41

48. Special Industry machinery and equipment............. .06 .06 .04 .04 .04 .04

49. General Industrial machinery and equipment........... .38 .39 .32 .32 .32 .32

50. Machine shop products................................. .08 .08 .06 .06 .06 .06

51. Office, computing and accounting machines............ .16 .35 .54 .54 .54 .54

52. Service Industry machines............................. .14 .06 .06 .06 .06 .06

53. Electric Industrial equipment and apparatus.......... .65 .41 .38 .38 .38 .38

54. Household appliances................................... .32 .03 .03 .03 .03 .03

55. Electric lighting and wiring equipment............... .17 .03 .03 .02 .02 .02

56. Radio, television and communication equipment........ 3.30 6.32 5.93 5.94 5.94 5.94

57. Electronic components and accessories................ .70 .87 1.00 1.00 1.00 1.00

58. Miscellaneous electrical machinery and supplies..... .21 .10 .10 .10 .10 .10

59. Motor vehicles and equipment.......................... .91 .94 1.31 1.30 1.30 1.30

60. Aircraft and parts..................................... 15.01 14.09 12.40 12.43 12.43 12.43

61. Other transportation equipment........................ 1.22 1.57 1.53 1.53 1.53 1.53

62. Scientific and controlling instruments............... 1.23 1.36 1.21 1.20 1.20 1.20

63. Optical, ophthalmic and photographic equipment...... .31 .20 .22 .22 .22 .22

64. Miscellaneous manufacturing........................... .08 .09 .06 .06 .06 .06

65. Transportation and warehousing........................ 2.69 3.06 2.67 2.67 2.67 2.67

66. Communications; except broadcasting.................. .32 .59 .68 .67 .67 .67

67. Radio and television broadcasting.................... - - - - - -

68. Electric, gas, water and sanitary services........... .65 .81 .85 .84 .84 .84

69. Wholesale and retail trade............................ 1.20 1.65 1.76 1.75 1.75 1.75

70. Finance and insurance................................. - .05 .07 .07 .07 .07

71. Real estate and rental................................ .21 1.03 1.12 1.11 1.11 1.11

72. Hotels; personal and repair services, except auto.... .46 .49 .58 .57 .57 .57

73. Business services...................................... .92 1.70 1.62 1.63 1.63 1.63

74. Research and development.............................. .69 .57 .61 .61 .61 .61

75. Automobile repair and services........................ .24 .18 .24 .23 .23 .23

76. Amusements............................................. .03 .07 .08 .08 .08 .08

77. Medical, educational and nonprofit organizations.... 1.22 1.16 1.90 1.90 1.90 1.90

78. Federal Government enterprises........................ .10 .08 .10 .09 .09 .09

79. State and local government enterprises............... .21 .35 .40 .39 .39 .39

80. Gross Imports of goods and services.................. 5.07 4.66 3.82 3.83 3.83 3.83

81. Business travel, entertainment and gifts............. - - - - - -

82. Office supplies........................................ .14 .18 .17 .17 .17 .17

83. Scrap, used and secondhand goods...................... .22 .33 - - - -

84. Government Industry.................................... 37.23 35.30 34.59 34.63 34.63 34.63

85. Rest of the world Industry............................ -.57 -1.49 -1.18 -1.18 -1.18 -1.18

86. Household industry..................................... - - - - - -

87. Inventory valuation adjustment........................ - - - - - -

Total................................................. 100.00 100.00 100.00 100.00 100.00 100.00

1/ See footnote 2, table IV-2.

2/ See footnote 3, table IV-2.

NOTE: Because of rounding, sums of Individual Items may

not equal totals.

SOURCE: Data for 1958 are from the U.S. Department of

Commerce, Office of Business Economics, Survey of Current

Business. September 1965. The year 1962 and 1970 projections

are estimated by the U.S. Department of Labor, Bureau of Labor

Statistics.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
63

(Millions of 1958 dollars)

Table IV-4. Industrial Composition of Purchases by State and Local Governments

1958, 1962, and Projected 1970

Industry number and title 1958 1962

Projected 1970

3 percent

unemployment 4 percent unemployment

Basic

model

Basic

model

High 1/

durables

High 2/

services

1. Livestock and livestock products..................... 11 15 27 27 27 27

2. Other agricultural products........................... 27 19 35 35 35 35

3. Forestry and fishery products......................... - - 1 1 1 1

4. Agricultural, forestry and fishery services.......... -68 -86 -195 -195 -195 -195

5. Iron and ferroalloy ores mining....................... - - - - - -

6. Nonferrous metal ores mining.......................... - - - - - -

7. Coal mining............................................ 61 66 118 115 115 115

8. Crude petroleum and natural g as....................... - - - - - -

9. Stone and clay mining and quarrying.................. -12 -6 -18 -18 -18 -18

10. Chemical and fertilizer mineral mining............... 12 6 18 18 18 18

11. New construction....................................... 12,069 13,387 21,975 21,475 21,475 22,315

12. Maintenance and repair construction.................. 3,339 3,871 5,000 5,000 5,000 5,000

13. Ordnance and accessories.............................. 4 7 13 13 13 13

14. Food and kindred products............................. 272 304 578 569 569 569

15. Tobacco manufactures.................................. - - 1 1 1 1

16. Broad and narrow fabrics, yarn and thread m ills..... 9 10 18 18 18 18

17. Miscellaneous textile goods and floor coverings..... 1 1 2 2 2 2

18. Apparel................................................. 92 116 216 212 212 212

19. Miscellaneous fabricated textile products............ - 1 1 1 1 1

20. Lumber and wood products, except containers.......... 1 1 2 1 1 1

21. Wooden containers...................................... - 1 1 1 1 1

22. Household furniture.................................... 57 94 166 162 162 169

23. Other furniture and fixtures.......................... 126 226 342 337 337 354

24. Paper and allied products, except containers......... 6 4 10 10 10 10

25. Paperboard containers and boxes....................... - - - - - -

26. Printing and publishing............................... 173 204 475 467 467 501

27. Chemicals and selected chemical products............. 242 322 606 600 600 637

28. Plastics and synthetic materials...................... - - - - - -

29. Drugs, cleaning, and toilet preparations............. 179 189 327 326 326 379

30. Paints and allied products............ - - - - ' -

31. Petroleum refining and related industries............ 382 549 1,060 1,040 1,040 1,040

32. Rubber and miscellaneous plastics products........... 75 129 242 235 235 235

33. Leather tanning and Industrial leather products..... - - - - - -

34. Footwear and other leather products...... ........... 2 2 3 3 3 3

35. Glass and glass products.............................. - - - - - -

36. Stone and clay products............................... 4 6 11 11 11 11

37. Primary iron and steel manufacturing................. 1 2 3 3 3 3

38. Primary nonferrous metals manufacturing.............. - - - - - -

39. Metal containers....................................... - - - - - -

40. Heating, plumbing and structural metal products..... - - - - - -

41. Stampings, screw machine products and bolts.......... 5 4 9 9 9 9

42. Other fabricated metal products....................... 46 64 106 104 104 117

43. Engines and turbines.................................. 3 6 11 11 11 11

44. Farm machinery and equipment.......................... 17 30 43 43 43 56

45. Construction, mining and oil field machinery......... 21 16 40 40 40 40

See footnotes at end of table

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
6k

Table IV-4. Industrial Composition of Purchases by State and Local Governments

1958, 1962, and Projected 1970--Continued

(Millions of 1958 dollars)

Industry number and title 1958 1962 3 percent

unemployment

Projected 1970

4 percent unemployment

Basic

model

Basic

model

High 1/

durables

High 2/

services

46. Materials handling machinery and equipment........... 50 70 107 105 105 132

47. Metalworking machinery and equipment................. 5 11 19 19 19 19

48. Special Industry machinery and equipment............. 30 60 92 90 90 90

49. General Industrial machinery and equipment........... 5 9 14 13 13 13

50. Machine shop products................................. 35 50 76 74 74 103

51. Office, computing and accounting machines............ 89 214 240 234 234 371

52. Service industry machines............................. 21 38 64 63 63 63

53. Electric Industrial equipment and apparatus.......... 5 10 18 18 18 18

54. Household appliances................................... 1 1 2 2 2 2

55. Electric lighting and wiring equipment............... 8 13 18 18 18 18

56. Radio, television and coonsinlcation equipment........ 62 56 130 128 128 128

57. Electronic components and accessories........... . - - - - - -

58. Miscellaneous electrical machinery and supplies..... 33 48 69 68 68 94

59. Motor vehicles and equipment.......................... 438 621 1,098 1,078 1,078 1,078

60. Aircraft and parts..................................... - - - - - -

61. Other transportation equipment........................ 38 79 135 135 135 135

62. Scientific and controlling lnstruaients............... 86 119 202 201 201 220

63. Optical, ophthalmic and photographic equipment...... 15 29 38 37 37 51

64. Miscellaneous manufacturing........................... 179 274 463 452 452 452

65. Transportation and warehousing........................ 402 406 826 809 809 891

66. Communications; except broadcasting.................. 190 263 493 481 481 481

67. Radio and television broadcasting..................... - - - - - -

68. Electric, gas, water and sanitary services........... 486 473 947 921 921 921

69. Wholesale and retail trade............................ 183 320 602 592 592 566

70. Finance and insurance.................................. 191 210 447 437 437 437

71. Real estate and rental................................ 233 423 742 722 722 722

72. Hotels; personal and repair services, except auto.... 87 -17 128 127 127 127

73. Business services...................................... 555 744 1,339 1,316 1,316 1,386

74. Research and development.............................. - - - - - -

75. Automobile repair and services........................ 83 134 255 249 249 249

76. Amusements............................................. -44 -98 -79 -77 -77 -77

77. Medical, educational and nonprofit organizations.... 311 232 428 428 428 508

78. Federal Government enterprises........................ 67 105 184 179 179 179

79. State and local government enterprises............... 6 12 21 21 21 21

80. Gross imports of goods and services.................. 3 4 8 8 8 8

81. Business travel, entertainment and gifts............. - - - - - -

82. Office supplies........................................ 132 220 381 371 371 371

83. Scrap, used and secondhand goods...................... 342 474 732 732 732 732

84. Government industry.................................... 19,078 22,299 33,214 32,772 32,772 33,300

85. Rest of the world industry............................ - - - - - -

86. Household industry..................................... - - - - - -

87. Inventory valuation adjustment........................ - - - - - -

Total................................................. 40,564 47,466 74,700 73,500 73,500 75,500

1/ See footnote 2, table IV-2.

2/ See footnote 3, table IV-2.

NOTE: Because of rounding, sums of individual Items may

not equal totals.

SOURCE: Data for 1958 are from the U.S. Department of

Comswrce, Office of Business Economics, Survey of Current

Business. September 1965. The year 1962 and 1970 projections

are estimated by the U.S. Department of Labor, Bureau of Labor

Statistics.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
65

(Percent distribution)

Table IV-5. Industrial Composition of Purchases by State and Local Governments

1958, 1962, and Projected 1970

Industry number and title 1958 1962

Projected 1970

3 percent

unemployment 4 percent unemployment

Basic

model

Basic

model

High 1/

durables

High 2/

services

1. Livestock and livestock products...................... .03 .03 .04 .04 .04 .04

2. Other agricultural products........................... .07 .04 .05 .05 .05 .05

3. Forestry and fishery products......................... - - — - - -

4. Agricultural, forestry and fishery services.......... -.17 -.18 -.26 -.27 -.27 -.26

5. Iron and ferroalloy ores mining....................... - - - - - -

6. Nonferrous metal ores mining.......................... - - - - - -

7. Coal mining............................................ .15 .14 .16 .16 .16 .15

8. Crude petroleum and natural gas....................... - - - - - -

9. Stone and clay mining and quarrying.................. -.03 -.01 -.02 -.02 -.02 -.02

10. Chemical and fertilizer mineral mining............... .03 .01 .02 .02 .02 .02

11. New construction....................................... 29.75 28.20 29.42 29.22 29.22 29.56

12. Maintenance and repair construction.................. 8.23 8.16 6.69 6.80 6.80 6.62

13. Ordnance and accessories.............................. .01 .01 .02 .02 .02 .02

14. Food and kindred products............................. .67 .64 .77 .77 .77 .75

15. Tobacco................................................ - - - - - -

16. Broad and narrow fabrics, yarn and thread mills..... .02 .02 .02 .02 .02 .02

17. Miscellaneous textile goods and floor coverings..... - - - - - -

18. Apparel................................................ .23 .24 .29 .29 .29 .28

19. Miscellaneous fabricated textile products............ - - - - - -

20. Lumber and wood products, except containers.......... - - - - - -

21. Wooden containers...................................... - - - - - -

22. Household furniture.................................... .14 .20 .22 .22 .22 .22

23. Other furniture and fixtures.......................... .31 .48 .46 .46 .46 .47

24. Paper and allied products, except containers......... .01 .01 .01 .01 .01 .01

25. Paperboard containers and boxes....................... - - - - - -

26. Printing and publishing............................... .43 .43 .64 .64 .64 .66

27. Chemicals and selected chemical products............. .60 .68 .81 .82 .82 .84

28. Plastics and synthetic materials...................... - - - - - -

29. Drugs, cleaning, and toilet preparations............. .44 .40 .44 .44 .44 .50

30. Paints and allied products............................ - - - - - -

31. Petroleum refining and related industries............ .94 1.16 1.42 1.41 1.41 1.38

32. Rubber and miscellaneous plastics products........... .18 .27 .32 .32 .32 .31

33. Leather tanning and industrial leather products..... - - - - - -

34. Footwear and other leather products.................. - - - - - -

35. Glass and glass products.............................. - - - - - -

36. Stone and clay products............................... .01 .01 .01 .01 .01 .01

37. Primary iron and steel manufacturing................. - - - - - -

38. Primary nonferrous metals manufacturing.............. - - - - - -

39. Metal containers....................................... - - - - - -

40. Heating, plumbing and structural metal products..... - * - - - -

41. Stampings, screw machine products and bolts.......... .01 .01 .01 .01 .01 .01

42. Other fabricated metal products....................... .11 .13 .14 .14 .14 .15

43. Engines and turbines.................................. .01 .01 .01 .01 .01 .01

44. Farm machinery and equipment.......................... .04 .06 .06 .06 .06 .07

45. Construction, mining and oil field machinery......... .05 .03 .05 .05 .05 .05

See footnotes at end of table.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
66

Table IV-5. Industrial Composition of Purchases by State and Local Governments

1958, 1962, and Projected 1970--Contlnued

(Percent distribution)

Industry number and title 1958 1962

Projected 1970

3 percent

unemployment

. 4 percent unemployment

Basic

model

Basic

model

High 1/

durables

High 2/

services

46. Materials handling machinery and equipment........... .12 .15 .14 .14 .14 .17

47. Metalworking machinery and equipment................. .01 .02 .03 .03 .03 .03

48. Special industry machinery and equipment............. .07 .13 .12 .12 .12 .12

49. General industrial machinery and equipment........... .01 .02 .02 .02 .02 .02

50. Machine shop products................................. .09 .11 .10 .10 .10 .14

51. Office, computing and accounting machines............ .22 .45 .32 .32 .32 .49

52. Service industry machines............................. .05 .08 .09 .09 .09 .08

53. Electric industrial equipment and apparatus.......... .01 .02 .02 .02 .02 .02

54. Household appliances................................... - - - - - -

55. Electric lighting and wiring equipment............... .02 .03 .02 .02 .02 .02

56. Radio, television and communication equipment........ .15 .12 .17 .17 .17 .17

57. Electronic components and accessories................ - - - - - -

58. Miscellaneous electrical machinery and supplies..... .08 .10 .09 .09 .09 .12

59. Motor vehicles and equipment.......................... 1.08 1.31 1.47 1.47 1.47 1.43

60. Aircraft and parts..................................... - - - - - -

61. Other transportation equipment........................ .09 .17 .18 .18 .18 .18

62. Scientific and controlling instruments............... .21 .25 .27 .27 .27 .29

63. Optical, ophthalmic and photographic equipment...... .04 .06 .05 .05 .05 .07

64. Miscellaneous manufacturing...... .................... .44 .58 .62 .61 .61 .60

65. Transportation and warehousing....,.................. .99 .86 1.11 1.10 1.10 1.18

66. Communications; except broadcasting............................ .47 .55 .66 .65 .65 .64

67. Radio and television broadcasting............................... - - - - - -

68. Electric, gas, water and sanitary services........... 1.20 1.00 1.27 1.25 1.25 1.22

69. Wholesale and retail trade............................ .45 .67 .81 .81 .81 .75

70. Finance and insurance................................. .47 .44 .60 .59 .59 .58

71. Real estate and rental................................ .57 .89 .99 .98 .98 .96

72. Hotels; personal and repair services, except auto.... .21 -.04 .17 .17 .17 .17

73. Business services...................................... 1.37 1.57 1.79 1.79 1.79 1.84

74. Research and development.............................. - - - - - -

75. Automobile repair and services........................ .02 .28 .34 .34 .34 .33

76. Amusements............................................. -.11 -.21 -.11 -.10 -.10 -.10

77. Medical, educational and nonprofit organizations.... .77 .49 .57 .58 .58 .67

78. Federal Government enterprises........................ .17 .22 .25 .24 .24 .24

79. State and local government enterprises............... .01 .03 .03 .03 .03 .03

80. Gross Imports of goods and services.................. .01 .01 .01 .01 .01 .01

81. Business travel, entertainment and gifts............. - - - - - -

82. Office supplies........................................ .33 .46 .51 .50 .50 .49

83. Scrap, used and secondhand goods...................... .84 1.00 .98 1.00 1.00 .97

84. Government industry.................................... 47.03 46.98 44.46 44.59 44.59 44.11

85. Rest of the world industry............................ - - - - - -

86. Household industry..................................... - - - - - -

87. Inventory valuation adjustment........................ - - - - - -

Total................................................. 100.00 100.00 100.00 100.00 100.00 100.00

1/ See footnote 2, table 1V-2.

2/ See footnote 3, table IV-2.

NOTE: Because of rounding, sums of individual items may

not equal totals.

SOURCE: Data for 1958 are from the U.S. Department

of Commerce, Office of Business Economics, Survey of Current

Business. September 1965. The year 1962 and 1970 projections are estimated by the U.S. Department of Labor, Bureau

of Labor Statistics.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
_________________________ (Millions of 1958 dollars)________________________

Table IV-6. Industrial Composition of Private Fixed Capital Investment

1958, 1962, and Projected 1970

Industry number and title 1958 1962

Projected 1970

3 percent

unemployment

4 percent unemployment

Basic

model

Basic

model

High

durables

High

services

1. Livestock and livestock products..................... - - - - - -

2. Other agricultural products........................... - - - - - -

3. Forestry and fishery products......................... - - - - - -

4. Agricultural, forestry and fishery services.......... - - - - - -

5. Iron and ferroalloy ores mining....................... - - - - - -

6. Nonferrous metal ores mining.......................... - - - - - -

7. Coal mining............................................ - - - - - -

8. Crude petroleum and natural gas....................... - - - - - -

9. Stone and clay mining and quarrying.................. - - - - - -

10. Chemical and fertilizer mineral mining............... - - - - - -

11. New construction....................................... 36,957 41,236 55,932 55,382 57,882 51,982

12. Maintenance and repair construction.................. - - - - - -

13. Ordnance and accessories.............................. - - - - - -

14. Food and kindred products..... ....................... - - T - - -

15. Tobacco manufactures................................... - - * - - -

16. Broad and narrow fabrics, yarn and thread mills..... - - - - - -

17. Miscellaneous textile goods and floor coverings..... 45 64 78 77 83 77

18. Apparel................................................. - - - - - -

19. Miscellaneous fabricated textile products............ - - - - - -

20. Lumber and wood products, except containers.......... 6 6 9 9 9 8

21. Wooden containers...................................... - - - - - -

22. Household furniture.................................... 126 142 247 243 263 228

23. Other furniture and fixtures.......................... 798 1,020 1,647 1,620 1,742 1,516

24. Paper and allied products, except containers......... - - - - - -

25. Paperboard containers and boxes....................... - - - - - -

26. Printing and publishing............................... - - - - - -

27. Chemicals and selected chemical products............. - - - - - -

28. Plastics and synthetic materials...................... - - - - - -

29. Drugs, cleaning, and toilet preparations............. - - - - - -

30. Paints and allied products............................ - - - - - -

31. Petroleum refining and related Industries............ - - - - - -

32. Rubber and miscellaneous plastics products........... 52 14 18 18 20 17

33. Leather tanning and industrial leather products..... - - - - - -

34. Footwear and other leather products.................. 5 - - - - -

35. Glass and glass products.............................. - - - - - -

36. Stone and clay products............................... - - - - - -

37. Primary iron and steel manufacturing................. - - - - - -

38. Primary nonferrous metals manufacturing.............. - - - - - -

39. Metal containers....................................... 10 11 23 23 25 21

40. Heating, plumbing and structural metal products..... 708 560 1,036 1,019 1,098 955

41. Stampings, screw machine products and bolts.......... - - - - - -

42. Other fabricated metal products....................... 166 169 290 285 306 267

43. Engines and turbines................................... 576 474 577 567 610 531

44. Farm machinery and equipment.......................... 1,670 1,532 2,256 2,220 2,389 2,079

45. Construction, mining and oil field siachinery......... 1,319 1,272 2,531 2,490 2,678 2,331

See footnotes at end of table,

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
68

Table IV-6, Industrial Composition of Private Fixed Capital Investment

1958, 1962, and Projected 1970--Contlnued

(Millions of 1958 dollars)

Industry number and title 1958 1962

Projected 1970

3 percent

unemployment 4 percent unemployment

Basic

model

Basic

model

High

durables

High

services

46. Materials handling machinery and equipment........... 352 434 699 688 740 644

47. Metalworking machinery and equipment................. 1,153 1,328 2,191 2,156 2,319 2,018

48. Special Industry machinery and equipment............. 1,468 1,848 2,907 2,860 3,076 2,677

49. General Industrial machinery and equipment........... 1,051 1,141 1,741 1,713 1,844 1,599

50. Machine shop products................................. - - - - - -

51. Office, computing and accounting machines............ 1,016 1,430 3,743 3,683 4,500 3,448

52. Service industry machines............................. 955 1,243 2,455 2,416 2,599 2,262

53. Electric industrial equipment and apparatus.......... 1,617 1,918 3,371 3,317 3,569 3,106

54. Household appliances................................... 93 101 210 207 222 194

55. Electric lighting and wiring equipment............... 25 39 58 57 61 54

56. Radio, television and communication equipment........ 1,009 1,634 2,541 2,500 2,689 2,342

57. Electronic components and accessories................ 27 52 92 90 97 84

58. Miscellaneous electrical machinery and supplies..... 83 125 223 220 237 206

59. Motor vehicles and equipment.......................... 3,575 5,917 10,115 9,870 10,480 9,242

60. Aircraft and parts..... ............................... 358 883 1,379 1,357 1,461 1,271

61. Other transportation equipment........................ 1,178 1,167 2,652 2,610 2,808 2,443

62. Scientific and controlling Instruments............... 532 704 1,156 1,137 1,224 1,065

63. Optical, ophthalmic and photographic equipment...... 163 252 593 583 627 546

64. Miscellaneous manufacturing........................... 279 381 599 589 633 551

65. Transportation and warehousing........................ 507 640 1,142 1,121 1,234 1,038

66. Communications; except broadcasting.................. 362 469 721 709 772 664

67. Radio and television broadcasting.................... - - - - - -

68. Electric, gas, water and sanitary services........... - - - - - -

69. Wholesale and retail trade............................ 3,747 4,742 8,564 8,410 8,945 7,893

70. Finance and insurance................................. - - - - - -

71. Real estate and rental............ .................... 1,209 1,100 1,350 1,350 1,350 1,250

72. Hotels; personal and repair services, except auto.... - - - - - -

73. Business services...... ............................... - - - - - -

74. Research and development.............................. - - - - - -

75. Automobile repair and services........................ - - - - - -

76. Amusements.......... ........ .......................... - - - - - -

77. Medical, educational and nonprofit organizations.... - - - - - -

78. Federal Government enterprises........................ - - - - - -

79. State and local government enterprises............... - - - - - -

80. Gross Imports of goods and services.................. 16 21 36 36 33 29

81. Business travel, entertainment and gifts............. - - - - - -

82. Office supplies........................................ - - - - - -

83. Scrap, used and secondhand goods...................... -822 -668 -632 -632 -625 -638

84. Government industry.................................... - - - - - -

85. Rest of the world Industry............................ - - - - - -

86. Household Industry..................................... - - - - - -

87. Inventory valuation adjustment........................ - - - - - -

Total................................................. 62,392 73,399 112,550 111,000 118,000 104,000

1/ See footnote 2, table IV-2.

2/ See footnote 3, table IV-2.

NOTE: Because of rounding, sums of Individual Items may

not equal totals.

SOURCE: Data for 1958 are from the U.S. Department of

Commerce, Office of Business Economics, Survey of Current

Business, September 1965. The year 1962 and 1970 projections

are estimated by the U.S. Department of Labor, Bureau of Labor

Statistics.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
69

_________________________(Percent distribution)_____________________________

Table IV-7. Industrial Composition o£ Private Fixed Capital Investment

1958, 1962, and Projected 1970

Industry number and title 1958 1962

Projected 1970

3 percent

unemployment 4 percent unemployment

Basic

model

Basic

model

High 1/

durables

High 2/

services

1. Livestock and livestock products..................... . - - - . .

2. Other agricultural products........................... - - - - - -

3. Forestry and fishery products......................... - - - - -

4. Agricultural, forestry and fishery services.......... - - - - -

5. Iron and ferroalloy ores mining....................... - - - - -

6. Nonferrous metal ores mining.......................... - - - - -

7. Coal mining............................................ - - - - -

8. Crude petroleum and natural gas....................... - - - - -

9. Stone and clay mining and quarrying.................. - - - - -

10. Chemical and fertilizer mineral mining............... - - - - -

11. New construction....................................... 59.23 56.18 49.70 49.89 49.05 49.98

12. Maintenance and repair construction.................. - - - - - -

13. Ordnance and accessories.............................. - - - - - -

14. Food and kindred products............................. - - - - - -

15. Tobacco manufactures................................... - - - - - -

16. Broad and narrow fabrics, yarn and thread mills..... - - - - - -

17. Miscellaneous textile goods and floor coverings..... .07 .09 .07 .07 .07 .07

18. Apparel................................................. - - - - - -

19. Miscellaneous fabricated textile products............ - - - - - -

20. Lumber and wood products, except containers.......... .01 .01 .01 .01 .01 .01

21. Wooden containers...................................... - - - - - -

22. Household furniture.................................... .20 .19 .22 .22 .22 .22

23. Other furniture and fixtures.......................... 1.28 1.39 1.46 1.46 1.48 1.46

24. Paper and allied products, except containers......... - - - - - -

25. Paperboard containers and boxes....................... - - - - - -

26. Printing and publishing..... ......... ................ - - - - - -

27. Chemicals and selected chemical products............. - - - - - -

28. Plastics and synthetic materials...................... - - - - - -

29. Drugs, cleaning, and toilet preparations............. - - * - - *

30. Paints and allied products........................... - - - * - -

31. Petroleum refining and related Industries............ - - - - - -

32. Rubber and miscellaneous plastics products........... .08 .02 .02 .02 .02 .02

33. Leather tanning and industrial leather products..... - - - - - -

34. Footwear and other leather products.................. .01 - - - - -

35. Glass and glass products.............................. - - - - - -

36. Stone and clay products............................... - - - - - -

37. Primary iron and steel manufacturing................. - - - - - -

38. Primary nonferrous metals manufacturing.............. - - - - - -

39. Metal containers....................................... .02 .01 .02 .02 .02 .02

40. Heating, plumbing and structural metal products..... 1.13 .76 .92 .92 .93 .92

41. Stampings, screw machine products and bolts.......... - - - - - -

42. Other fabricated metal products....................... .27 .23 .26 .26 .26 .26

43. Engines and turbines................................... .92 .65 .51 .51 .52 .51

44. Farm machinery and equipment.......................... 2.68 2.09 2.00 2.00 2.02 2.00

45. Construction, mining and oil field machinery......... 2.11 1.73 2.25 2.24 2.27 2.24

See footnotes at end of table.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
70

Table IV-7. Industrial Composition of Private Fixed Capital Investment

1958, 1962, and Projected 1970— Continued

(Percent distribution)

Industry number and title 1958 1962

Projected 1970

3 percent

unemployment

4 percent unemployment

Basic

model

Basic

model

High 1/

durables

High 2/

services

46. Materials handling machinery and equipment........... .56 .59 .62 .62 .63 .62

47. Metalworking machinery and equipment................. 1.85 1.81 1.95 1.94 1.97 1.94

48. Special industry machinery and equipment............. 2.35 2.52 2.58 2.58 2.61 2.57

49. General Industrial machinery and equipment........... 1.68 1.55 1.55 1.54 1.56 1.54

50. Machine shop products.................................. - - - - - -

51. Office, computing and accounting machines............ 1.63 1.95 3.33 3.32 3.81 3.32

52. Service industry machines............................. 1.53 1.69 2.18 2.18 2.20 2.18

53. Electric industrial equipatent and apparatus.......... 2.59 2.61 3.00 2.99 3.02 2.99

54. Household appliances................................... .15 .14 .19 .19 .19 .19

55. Electric lighting and wiring equipment............... .04 .05 .05 .05 .05 .05

56. Radio, television and communication equipment........ 1.62 2.23 2.26 2.25 2.28 2.25

57. Electronic components and accessories................ .04 .07 .08 .08 .08 .08

58. Miscellaneous electrical siachlnery and supplies..... .13 .17 .20 .20 .20 .20

59. Motor vehicles and equipment..... .................... 5.73 8.06 8.99 8.89 8.88 8.89

60. Aircraft and parts..................................... .57 1.20 1.23 1.22 1.24 1.22

61. Other transportation equipment........................ 1.89 1.59 2.36 2.35 2.38 2.35

62. Scientific and controlling Instruments............... .85 .96 1.03 1.02 1.04 1.02

63. Optical, ophthalmic and photographic equipment...... .26 .34 .53 .53 .53 .53

64. Miscellaneous manufacturing........................... .45 .52 .53 .53 .54 .53

65. Transportation and warehousing........................ .81 .87 1.01 1.01 1.05 1.00

66. Communications; except broadcasting.............. .'. .. .58 .64 .64 .64 .65 .64

67. Radio and television broadcasting..................... - - - - - -

68. Electric, gas, water and sanitary services........... - - - - - -

69. Wholesale and retail trade............................ 6.01 6.46 7.61 7.58 7.58 7.59

70. Finance and Insurance.................................. - - - - - -

71. Real estate and rental................................ 1.94 1.50 1.20 1.22 1.14 1.20

72. Hotels; personal and repair services................. - - - - - -

73. Business services...................................... - - - - - -

74. Research and development.............................. - - - - - -

75. Automobile repair and services........................ - - - - - -

76. Amusements............................................. - - - - - -

77. Medical, educational and nonprofit organizations.... - - - - - -

78. Federal Government enterprises........................ - - - - - -

79. State and local government enterprises............... - - - - - -

80. Gross Imports of goods and services............. . .03 .03 .03 .03 .03 .03

81. Business travel, entertainment and gifts............. - - - - - -

82. Office supplies........................................ - - - - - -

83. Scrap, used and secondhand goods...................... -1.32 -.19 -.56 -.57 -.53 -.61

84. Government industry.................................... - - - - - -

85. Rest of the world Industry............................ - - - - - -

86. Household Industry..................................... - - - - - -

87. Inventory valuation adjustment........................ - - - - - -

Total................................................. 100.00 100.00 100.00 100.00 100.00 100.00

1/ See footnote 2, table IV-2.

2/ See footnote 3, table IV-2,

NOTE: Because of rounding, sums of Individual Items may

not equal totals.

SOURCE: Data for 1958 are from the U.S. Department of

Commerce, Office of Business Economics, Survey of Current

Business. September 1965. The year 1962 and 1970 projections

are estimated by the U.S. Department of Labor, Bureau of Labor

Statistics.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
71

Table IV-8. Industrial Composition of Gross Private Domestic Investment

1958, 1962, and Projected 1970

(Millions of 1958 dollars)

Industry number and title 1958 1962

Projected 1970

3 percent

unemployment

4 percent unemployment

Basic

model

Basic

model

High 1/

durables

High 2/

services

1. Livestock and livestock products.................... . 601 698 388 388 388 388

2. Other agricultural products........................... 428 -144 236 236 236 236

3. Forestry and fishery products......................... 19 16 34 34 34 34

4. Agricultural, forestry and fishery services.......... 20 14 31 31 31 31

5. Iron and ferroalloy ores mining....................... -23 -5 2 2 2 2

6. Nonferrous metal ores mining.......................... -32 4 12 12 12 12

7. Coal mining............................................ -22 -17 25 25 25 25

8. Crude petroleum and natural gas....................... -40 21 34 34 34 34

9. Stone and clay mining and quarrying..... ........... . 4 8 17 17 17 17

10. Chemical and fertilizer mineral mining............... -1 - 5 5 5 5

11. New construction....................................... 36,957 41,236 55,932 55,382 57,882 51,982

12. Maintenance and repair construction.................. - - - - - -

13. Ordnance and accessories.............................. 84 - 29 29 29 29

14. Food and kindred products............................. 248 494 463 463 463 463

15. Tobacco manufactures................................... -26 16 10 10 10 10

16. Broad and narrow fabrics, yarn and thread mills..... -104 148 111 111 111 111

17. Miscellaneous fabricated textile products............ 18 137 143 142 148 142

18. Apparel................................................. -123 629 618 618 618 618

19. Miscellaneous fabricated textile products............ -1 27 19 19 19 19

20. Lumber and wood products, except containers.......... 68 62 69 69 69 68

21. Wooden containers.............. ....................... -9 18 11 11 11 11

22. Household furniture.................................... 120 177 276 272 292 257

23. Other furniture and fixtures.......................... 799 1,025 1,654 1,627 1,749 1,523

24. Paper and allied products, except containers......... -3 68 73 73 73 73

25. Paperboard containers and boxes....................... -1 30 22 22 22 22

26. Printing and publishing............................... 11 70 78 78 78 78

27. Chemicals and selected chemical products............. -24 69 65 65 65 65

28. Plastics and synthetic materials...................... -44 91 99 99 99 99

29. Drugs, cleaning, and toilet preparations............. 56 142 148 148 148 148

30. Paints and allied products................ ........... -4 2 4 4 4 4

31. Petroleum refining and related Industries............ -186 157 114 114 114 114

32. Rubber and miscellaneous plastics products........... 20 85 91 91 93 90

33. Leather tanning and Industrial leather products..... -3 -4 5 5 5 5

34. Footwear and other leather products.................. 37 102 21 21 21 21

35. Glass and glass products.............................. -5 14 12 12 12 12

36. Stone and clay products............................... 28 32 42 42 42 42

37. Primary iron and steel manufacturing................. -160 -102 100 100 100 100

38. Primary nonferrous metals manufacturing..... ........ -10 99 112 112 112 112

39. Metal containers....................................... 23 16 29 29 31 27

40. Heating, plumbing and structural metal products..... 639 545 1,042 1,025 1,104 961

41. Stampings, screw machine products and bolts.......... -67 5 13 13 13 13

42. Other fabricated metal products....................... 118 268 392 387 408 369

43. Engines and turbines................................... 516 524 627 617 660 581

44. Farm machinery and equipment.......................... 1,648 1,648 2,374 2,338 2,507 2,197

45. Construction, mining and oil field machinery......... 1,246 1,310 2,580 2,539 2,727 2,380

See footnotes at end of table.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
72

Table IV-8. Industrial Composition of Gross Private Domestic Investment

1958, 1962, and Projected 1970--Contlnued

(Millions of 1958 dollars)

Industry number and title 1958 1962

Projected 1970

3 percent

unemployment

4 percent unemployment

Basic

model

Basic

model

High 1/

durablaa

High 2/

services

46. Materials handling machinery and equipment........... 328 416 734 723 775 679

47. Metalworking machinery and equipment................. 1,022 1,402 2,277 2,242 2,405 2,104

48. Special industry machinery and equipment............. 1,361 1,860 2,915 2,868 3,084 2,685

49. General industrial machinery and equipment........... 970 1,209 1,809 1,781 1,912 1,667

50. Machine shop products.................................. -10 39 33 33 33 33

51. Office, computing and accounting machines............ 1,001 1,498 3,836 3,776 4,593 3,541

52. Service Industry machines............................. 919 1,288 2,500 2,461 2,644 2,307

53. Electric Industrial equipment and apparatus.......... 1,484 1,973 3,436 3,382 3,634 3,171

54. Household appliances................................... 29 174 296 293 308 280

55. Electric lighting and wiring equipment............... -4 56 85 84 88 81

56. Radio, television and communication equipment........ 938 1,805 2,805 2,764 2,953 2,606

57. Electronic components and accessories................ -21 202 205 203 210 197

58. Miscellaneous electrical machinery and supplies..... 59 150 254 251 268 237

59. Motor vehicles and equipment.......................... 3,046 6,657 10,894 10,649 11,259 10,021

60. Aircraft and parts..................................... 96 1,068 1,542 1,520 1,624 1,434

61. Other transportation equipment........................ 1,103 1,309 2,801 2,759 2,957 2,592

62. Scientific and controlling instruments............... 524 776 1,225 1,206 1,293 1,134

63. Optical, ophthalmic and photographic equipment...... 168 267 608 598 642 561

64. Miscellaneous manufacturing........................... 313 485 712 702 746 664

65. Transportation and warehousing........................ 661 783 1,287 1,266 1,379 1,183

66. Communications; except broadcasting.................. 362 469 721 709 772 664

67. Radio and television broadcasting..................... - - - - - -

68. Electric, gas, water and sanitary services........... - - - - - -

69. Wholesale and retail trade............................ 3,816 5,213 9,002 8,848 9,383 8,331

70. Finance and Insurance.................................. - - - - - -

71. Real estate and rental................................ 1,209 1,100 1,350 1,350 1,350 1,250

72. Hotels; personal and repair services, except auto.... - - - - - -

73. Business services...................................... - - - - - -

74. Research and development.............................. - - - - - -

75. Automobile repair and services........................ - - - - * -

76. Amusements............................................. 22 15 41 41 41 41

77. Medical, educational and nonprofit organizations.... - - - - - -

78. Federal Government enterprises........................ - - - - - -

79. State and local government enterprises............... - - - - - -

80. Gross imports of goods and services.................. 24 -112 -348 -348 -351 -355

81. Business travel, entertainsmnt and gifts............. - - - - - -

82. Office supplies........................................ - - - - - -

83. Scrap, used and secondhand goods...................... -1,028 -701 -632 -632 -625 -638

84. Government Industry.................................... - - - - - -

85. Rest of the world industry............................ - - - - - -

86. Household industry..................................... ' - - - - - -

87. Inventory valuation adjustment........................ -311 269 - - - -

Total................................................. 60,901 79,403 118,550 117,000 124,000 110,000

1J See footnote 2, table IV-2.

2/ See footnote 3, table IV-2.

NOTE: Because of rounding, sums of individual items may

not equal totals.

SOURCE: Data for 1958 are from the U.S. Department of

Commerce, Office of Business Economics, Survey of Current

Business. September 1965. The year 1962 and 1970 projections

are estimated by the U.S. Department of Labor, Bureau of Labor

Statistics.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
73

(Millions of 1958 dollars)

Table IV-9. Industrial Composition of Personal Consumption Expenditures

1958, 1962, and Projected 1970

Industry number and title 1958 y

_

Projected 1970

1962 3 percent

unemployment 4 percent unemployment

Basic

model

Basic

model

High 2/

durables

High 3/

services

1. Livestock and livestock products..................... 2,110 1,883 1,651 1,632 1,617 1,638

2. Other agricultural products........................... 2,428 2,297 2,644 2,608 2,597 2,617

3. Forestry and fishery products......................... 281 301 390 383 382 384

4. Agricultural, forestry and fishery services.......... - - - - - -

5. Iron and ferroalloy ores mining....................... - - - - - -

6. Nonferrous metal ores mining.......................... - - - - - -

7. Coal mining............................................ 261 186 181 179 178 180

8. Crude petroleum and natural gas....................... - - - - - -

9. Stone and clay mining and quarrying.................. 17 21 30 29 28 29

10. Chemical and fertilizer mineral mining............... 1 2 2 2 2 2

11. New construction....................................... - - - - - -

12. Maintenance and repair construction.................. - - - - - -

13. Ordnance and accessories.............................. 158 201 344 341 353 342

14. Food and kindred products............................. 45,376 50,547 64,556 63,585 63,356 63,811

15. Tobacco manufactures.................................. 4,249 4,847 6,517 6,419 6,393 6,442

16. Broad and narrow fabrics, yarn and thread mills..... 696 825 1,214 1,188 1,206 1,193

17. Miscellaneous textile goods and floor coverings..... 743 909 1,473 1,450 1,582 1,454

18. Apparel................................................ 11,033 12,719 17,789 17,521 17,462 17,583

19. Miscellaneous fabricated textile products............ 1,101 1,339 1,993 1,965 1,991 1,972

20. Lumber and wood products, except containers.......... 149 174 268 263 283 264

21. Wooden containers...................................... - - - - - -

22. Household furniture.................................... 2,416 2,606 4,321 4,258 4,663 4,271

23. Other furniture and fixtures.......................... 129 158 264 260 285 261

24. Paper and allied products, except containers......... 848 1,039 1,550 1,528 1,522 1,533

25. Paperboard containers and boxes....................... 38 45 66 65 65 65

26. Printing and publishing............................... 2,444 2,991 4,130 4,066 4,192 4,079

27. Chemicals and selected chemical products............. 213 259 388 384 394 385

28. Plastics and synthetic materials...................... 10 14 20 19 19 19

29. Drugs, cleaning, and toilet preparations............. 3,704 4,669 8,569 8,441 8,412 8,471

30. Paints and allied products.... . 18 22 32 31 31 31

31. Petroleum refining and related Industries............ 7,257 8,134 11,685 11,511 11,464 11,552

32. Rubber and miscellaneous plastics products........... 1,308 1,731 2,640 2,601 2,790 2,609

33. Leather tanning and industrial leather products...... - - - - - -

34. Footwear and other leather products.................. 2,594 2,597 2,943 2,887 2,891 2,898

35. Glass and glass products.............................. 130 147 214 211 229 213

36. Stone and clay products............................... 214 243 349 344 361 345

37. Primary iron and steel manufacturing................. 19 22 28 28 28 28

38. Primary nonferrous metals manufacturing.............. 11 13 21 20 22 20

39. Metal containers....................................... - - - - - -

40. Heating, plumbing and structural metal products..... 70 84 131 131 143 132

41. Stampings, screw machine products and bolts.......... 249 267 380 374 407 375

42. Other fabricated metal products....................... 372 451 775 764 807 766

43. Engines and turbines...... ........................... 126 150 286 282 309 283

44. Farm machinery and equipment.......................... 8 11 18 17 19 17

45. Construction, mining and oil field machinery......... - - - - - -

See footnotes at end of table.

239-877 0-66-6

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Jk

Table 1V-9. Industrial Composition of Personal Consumption Expenditures

1958, 1962, and Projected— Continued

(Millions of 1958 dollars)

Industry number and title 1958 - 1962

Projected 1970

3 percent

unemployment

4 percent unemployment

Basic

model

Basic

model

High 1/

durables

High 1/

services

46. Materials handling machinery and equipment........... - - - . _ -

47. Metalworking machinery and equipment................. 31 39 64 63 69 63

48. Special industry machinery and equipment............. 19 24 41 40 44 40

49. General Industrial machinery and equipment........... - - - - - -

50. Machine shop products.................................. - - - - - -

51. Office, computing and accounting machines............ 58 73 126 124 136 125

52. Service Industry machines............................. 247 301 481 473 518 474

53. Electric Industrial equipment and apparatus.......... 15 18 29 28 30 28

54. Household appliances................................... 2,371 2,853 5,372 5,288 5,782 5,305

55. Electric lighting and wiring equipment............... 313 388 615 605 632 607

56. Radio, television and communication equlpsmnt........ 1,353 1,826 4,428 4,364 4,779 4,377

57. Electronic components and accessories................ 149 201 405 401 439 402

58. Miscellaneous electrical machinery and supplies..... 260 333 551 545 587 546

59. Motor vehicles and equipment.......................... 9,198 13,222 21,095 20,780 22,753 20,843

60. Aircraft and parts..................................... 27 33 63 62 68 62

61. Other transportation equipment........................ 725 979 1,662 1,637 1,793 1,642

62. Scientific and controlling Instruments............... 349 496 723 713 764 716

63. Optical, ophthalmic and photographic equipment...... 451 612 1,093 1,077 1,149 1,080

64. Miscellaneous manufacturing........................... 2,526 3,004 5,306 5,233 5,514 5,251

65. Transportation and warehousing........................ 8,568 9,958 14,031 13,819 13,605 13,895

66. Communications; except broadcasting.................. 3,908 4,918 8,555 8,428 7,823 8,502

67. Radio and television broadcasting..................... - - - - - -

68. Electric, gas, water and sanitary services........... 8,058 10,023 15,731 15,496 14,333 15,632

69. Wholesale and retail trade............................ 61,483 71,336 101,638 100,383 102,828 100,728

70. Finance and Insurance................................. 11,813 13,604 20,780 20,471 19,024 20,650

71. Reel estate and rental,,................. . 39,946 47,587 72,396 71,517 66,419 72,144

72. Hotels; personal and repair services, except auto.... 9,263 10,747 15,053 14,697 13,653 14,826

73. Business services...................................... 1,888 2,263 2,796 2,753 2,556 2,777

74. Research and development.............................. - - - - - -

75. Automobile repair and services........................ 4,386 4,818 7,228 7,120 6,609 7,182

76. Amusements............................................. 3,186 3,501 4,678 4,609 4,277 4,648

77. Medical, educational and nonprofit organizations.... 20,445 23,944 36,890 36,271 33,685 38,885

78. Federal Government enterprises........................ 632 747 1,136 1,119 1,038 1,129

79. State and local government enterprises............... 312 405 765 753 699 759

80. Gross imports of goods and services.................. 3,855 5,209 7,403 7,297 7,108 7,340

81. Business travel, entertainsmnt and gifts............. - - - - - -

82. Office supplies........................................ - - - - - -

83. Scrap, used and secondhand goods...................... -55 -44 3 - 10 -

84. Government Industry.................................... - - - - - -

85. Rest of the world Industry............................ - - - - - -

86. Household industry..................................... 3,502 3,322 3,601 3,547 3,293 3,578

87. Inventory valuation adjustment........................ - - - - - .

Total................................................. 290,069 338,641 492,600 485,500 478,500 490,500

1/ Travel receipts from foreign visitors to the United

States were distributed among the individual producing industries for all years. Therefore, 1958 data differ from that

presented in the 1958 input-output table, where it is shown

as a single item in industry 85. A corresponding, but offsetting adjustment has also been made in net exports, as

shown in table IV-12.

2/ See footnote 2, table IV-2.

3/ See footnote 3, table IV-2.

NOTE: Because of rounding, sums of individual items may not

equal totals.

SOURCE: Data for 1958 are from the U.S. Department of

Commerce, Office of Business Economics, Survey of Current Business

September 1965. The year 1962 and 1970 projections are estimated

by the U.S. Department of Labor, Bureau of Labor Statistics.

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Table IV-10. Personal Consumption Expenditures, by Major Type, for Selected Years and Projected 1970

(Billions of 1958 dollars)

Major type

Selected years Projected 1970

1950 1957 1962 1965 -1

3 percent 4 percent unemployment

ment

Basic

model

High U

durables

High y

services Basic

model

Total personal consumption expenditures.......... 230.5 288.2 338.6 394.1 492.6 485.5 478.5 490.5

Durable goods................................... 34.7 41.5 49.2 65.4 83.1 81.9 89.7 82.2

Automobiles and parts........................ 15.9 18.8 21.8 30.1 34.8 34.3 37.5 34.4

Furniture and household equipment........... 15.1 17.4 20.5 26.5 36.6 36.1 39.6 36.2

Other......................................... 3.7 5.3 6.8 8.8 11.7 11.5 12.6 11.6

Nondurable goods................................ 114.0 138.7 158.4 177.0 212.1 209.0 208.2 209.8

Food and beverages........................... 63.2 76.2 84.1 91.7 106.8 105.2 104.8 105.6

Clothing and shoes........................... 21.8 24.4 28.4 32.8 37.9 37.3 37.2 37.5

Gasoline and oil............................. 6.5 10.5 12.5 13.9 18.1 17.9 17.8 18.0

Other......................................... 22.5 27.5 33.4 38.6 49.3 48.6 48.4 48.7

Services......................................... 81.8 108.0 131.1 151.6 197.4 194.5 180.6 198.5

Housing....................................... 26.8 39.2 49.1 59.2 74.8 73.7 68.4 74.3

Household operation.......................... 11.7 16.7 20.4 23.3 31.2 30.7 28.5 31.0

Transportation............................... 8.5 9.5 9.9 10.6 14.9 14.6 13.6 14.8

Other......................................... 34.8 42.5 51.7 58.4 76.5 75.5 70.1 78.4

Percent distribution

Total personal consumption expenditures.......... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Durable goods................................... 15.1 14.4 14.5 16.6 16.9 16.9 18.7 16.8

Automobiles and parts........................ 6.9 6.5 6.4 7.6 7.1 7.1 7.8 7.0

Furniture and household equipment........... 6.6 6.0 6.1 6.7 7.4 7.4 8.3 7.4

Other......................................... 1.6 1.8 2.0 2.2 2.4 2.4 2.6 2.4

Nondurable goods................................ 49.4 48.1 46.8 44.9 43.1 43.0 43.5 42.8

Food and beverages........................... 27.4 26.4 24.8 23.3 21.7 21.7 21.9 21.5

Clothing and shoes........................... 9.5 8.5 8.4 8.3 7.7 7.7 7.8 7.6

Gasoline and oil............................. 2.8 3.6 3.7 3.5 3.7 3.7 3.7 3.7

Other......................................... 9.8 9.5 9.9 9.8 10.0 10.0 10.1 9.9

Services......................................... 35.5 37.5 38.7 38.5 40.1 40.1 37.7 40.5

Housing....................................... 11.6 13.6 14.5 15.0 15.2 15.2 14.3 15.1

Household operation.......................... 5.1 5.8 6.0 5.9 6.3 6.3 6.0 6.3

Transportation............................... 3.7 3.3 2.9 2.7 3.0 3.0 2.8 3.0

Other......................................... 15.1 14.8 15.3 14.8 15.5 15.6 14.6 16.0

Average annual rate of change

Selected periods Projected 1965-70^

3 percent

unemploy4 percent unemployment

1950-57 1957-65 1957-62 1962-65 ment

Ra mi r Basic High High y

model

model durables services

Total personal consumption expenditures.......... 3,2 4.0 3.3 5.2 4.6 4.3 4.0 4.5

Durable goods.................................... 2.6 5.9 3.5 9.9 4.9 4.6 6.5 4.7

Automobiles and parts........................ 2.4 6.1 3.0 11.4 2.9 2.7 4.5 2.7

Furniture and household equipment........... 2.0 5.4 3.3 8.9 6.7 6.4 8.4 6.4

Other......................................... 5.3 6.6 5.1 9.0 5.8 5.5 7.5 5.7

Nondurable goods................................ 2.8 3.1 2.7 3.8 3.7 3.4 3.3 3.5

Food and beverages........................... 2.7 2.4 2.0 2.9 3.1 2.8 2.7 2.9

Clothing and shoes........................... 1.6 3.8 3.1 4.9 2.9 2.6 2.5 2.7

Gasoline and oil............................. 7.1 3.6 3.6 3.6 5.4 5.2 5.1 5.3

Other......................................... 2.9 4.3 4.0 5.0 5.0 4.7 4.6 4.8

Services......................................... 4.1 4.3 4.0 5.0 5.4 5.1 3.6 5.5

Housing....................................... 5.6 5.3 4.6 6.4 4.8 4.5 2.9 4.6

Household operation.......................... 5.2 4.3 4.1 4.5 6.0 5.7 4.1 5.9

Transportation............................... 1.6 1.4 0.8 2.3 7.0 6.6 5.1 6.9

Other......................................... 2.9 4.1 4.0 4.1 5.5 5.3 3.7 6.1

\l Preliminary.

2/ See footnote 2, table IV-2.

3/ See footnote 3, table IV-2.

4/ Compound Interest rates based on terminal years.

NOTE: Because of rounding, sums of Individual items may not

equal totals.

SOURCE: Historical data on personal consumption expenditures are from U.S. Department of Commerce, Office of Business

Economics. Projections are by U.S. Department of Labor, Bureau

of Labor Statistics.

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(Percent distribution)

Table IV-11. Industrial Composition of Personal Consumption Expenditures

1958, 1962, and Projected 1970

Industry number and title 1958 1962

Projected 1970

3 percent

unemployment

4 percent unemployment

Basic

model

Basic

model

High 1/

durables

High 2/

services

1. Livestock and livestock products.................... .73 .56 .34 .34 .34 .33

2. Other agricultural products.......................... .84 .68 .55 .54 .54 .53

3. Forestry and fishery products........................ .10 .09 .08 .08 .08 .08

4. Agricultural, forestry and fishery services......... - - - - - -

5. Iron and ferroalloy ores mining...................... - - - - - -

6. Nonferrous metal ores mining......................... - - - - - -

7. Coal mining........................................... .09 .05 .04 .04 .04 .04

8. Crude petroleum and natural gas...................... - - - - - -

9. Stone and clay mining and quarrying................. .01 .01 .01 .01 .01 .01

10. Chemical and fertilizer mineral mining.............. - - - - - -

11. New construction...................................... - - - - - -

12. Maintenance and repair construction................. - - - - - -

13. Ordnance and accessories............................. .05 .06 .07 .07 .07 .07

14. Food and kindred products............................ 15.64 14.93 13.11 13.10 13.24 13.01

15. Tobacco manufactures.................................. 1.46 1.43 1.32 1.32 1.34 1.31

16. Broad and narrow fabrics, yarn and thread mills..... .24 .24 .25 .24 .25 .24

17. Miscellaneous textile goods and floor coverings.... .26 .27 .30 .30 .33 .30

18. Apparel............................................... 3.80 3.76 3.61 3.61 3.65 3.58

19. Miscellaneous fabricated textile products........... .38 .40 .40 .40 .42 .40

20. Lumber and wood products, except containers......... .05 .05 .05 .05 .06 .05

21. Wooden containers..................................... - - - - - -

22. Household furniture................................... .83 .77 .88 .88 .97 .87

23. Other furniture and fixtures......................... .04 .05 .05 .05 .06 .05

24. Paper and allied products, except containers........ .29 .31 .31 .31 .32 .31

25. Paperboard containers and boxes...................... .01 .01 .01 .01 .01 .01

26. Printing and publishing.............. .......... . .84 .88 .84 .84 .88 .83

27. Chemicals and selected chemical products............ .07 .08 .08 .08 .08 .08

28. Plastics and synthetic materials..................... - - - - - -

29. Drugs, cleaning, and toilet preparations............ 1.28 1.38 1.74 1.74 1.76 1.73

30. Paints and allied products............ ............... .01 .01 .01 .01 .01 .01

31. Petroleum refining and related Industries........... 2.50 2.40 2.37 2.37 2.40 2.36

32. Rubber and miscellaneous plastics products.......... .45 .51 .54 .54 .58 .53

33. Leather tanning and Industrial leather products.... - - - - - -

34. Footwear and other leather products................. .89 .77 .60 .59 .60 .59

35. Glass and glass products............................. .04 .04 .04 .04 .05 .04

36. Stone and clay products.............................. .07 .07 .07 .07 .08 .07

37. Primary iron and steel manufacturing................ .01 .01 .01 .01 .01 .01

38. Primary nonferrous metals manufacturing............. - - - - - -

39. Metal Containers...................................... - - - - - -

40. Heating, plumbing and structural metal products.... .02 .02 .03 .03 .03 .03

41. Stampings, screw machine products and bolts......... .09 .08 .08 .08 .09 .08

42. Other fabricated metal products.... ................. .13 .13 .16 .16 .17 .16

43. Engines and turbines.................................. .04 .04 .06 .06 .06 .06

44. Farm machinery and equipment........................ - - - - - -

45. Construction, mining and oil field machinery........ - - - - - -

See footnotes at end of table

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Table IV-11. Industrial Composition of Personal Consumption Expenditures

1958, 1962, and Projected 1970--Contlnued

(Percent distribution)

Industry number and title 1958 1962

Projected 1970

3 percent

unemployment 4 percent unemployment

Basic

model

Basic

model

High V

durables

High y

services

46. Materials handling machinery and equipment.......... - - - - - -

47. Metalworking machinery and equipment................ .01 .01 .01 .01 .01 .01

48. Special Industry machinery and equipment............ .01 .01 .01 .01 .01 .01

49. General industrial machinery and equipment.......... - - - - - -

50. Machine shop products................................ - - - - - -

51. Office, computing and accounting machines........... .02 .02 .03 .03 .03 .03

52. Service Industry machines............................ .09 .09 .10 .10 .11 .10

53. Electric industrial equipment and apparatus......... .01 .01 .01 .01 .01 .01

54. Household appliances................................. .82 .84 1.09 1.09 1.21 1.08

55. Electric lighting and wiring equipment.............. .11 .11 .12 .12 .13 .12

56. Radio, television and communication equipment....... .47 .54 .90 .90 1.00 .89

57. Electronic components and accessories............... .05 .06 .08 .08 .09 .08

58. Miscellaneous electrical machinery and supplies.... .09 .10 .11 .11 .12 .11

59. Motor vehicles and equipment......................... 3.17 3.90 4.28 4.28 4.76 4.25

60. Aircraft and parts.................................... .01 .01 .01 .01 .01 .01

61. Other transportation equipment....................... .25 .29 .34 .34 .37 .33

62. Scientific and controlling Instruments.............. .12 .15 .15 .15 .16 .15

63. Optical, ophthalmic and photographic equipment..... .16 .18 .22 .22 .24 .22

64. Miscellaneous manufacturing.......................... .87 .89 1.08 1.08 1.15 1.07

65. Transportation and warehousing....................... 2.95 2.94 2.85 2.85 2.84 2.83

66. Communications; except broadcasting................. 1.35 1.45 1.74 1.74 1.63 1.73

67. Radio and television broadcasting................... - - - - - -

68. Electric, gas, water and sanitary services.......... 2.78 2.96 3.19 3.19 3.00 3.19

69. Wholesale and retail trade................... ....... 21.20 21.07 20.63 20.68 21.49 20.54

70. Finance and Insurance................................ 4.07 4.02 4.22 4.22 3.98 4.21

71. Real estate and rental............................... 13.77 14.05 14.70 14.73 13.88 14.71

72. Hotels; personal and repair services, except auto... 3.19 3.17 3.06 3.03 2.85 3.02

73. Business services............. ....................... .65 .67 .57 .57 .53 .57

74. Research and development............................. - - - - - -

75. Automobile repair and services....................... 1.51 1.42 1.47 1.47 1.38 1.46

76. Amusement8............................................ 1.10 1.03 .95 .95 .89 .95

77. Medical, educational and nonprofit organizations.... 7.05 7.07 7.49 7.47 7.04 7.93

78. Federal Government enterprises....................... .22 .22 .23 .23 .22 .23

79. State and local government enterprises...,.......... .11 .12 .16 .16 .15 .15

80. Gross imports of goods and services................. 1.33 1.54 1.50 1.50 1.49 1.50

81. Business travel, entertainment and gifts............ - - - - - -

82. Office supplies..................................... - - - - - -

83. Scrap, used and secondhand goods............ ........ .01 -.01 - - - -

84. Government industry............ ...................... - - - - - -

85. Rest of the world industry............ ............... - - - - - -

86. Household industry.................................... 1.21 .98 .73 .73 .69 .73

87. Inventory valuation adjustment....................... - - - - - -

Total................................................ 100.00 100.00 100.00 100.00 100.00 100.00

1J See footnote 2, table IV-2.

2J See footnote 3, table IV-2.

NOTE: Because of rounding, sums of Individual Items may

not equal totals.

SOURCE: Data for 1958 are from the U.S. Department of

Commerce, Office of Business Economics, Survey of Current

Business. September 1965. The year 1962 and 1970 projections

are estimated by the U.S. Departswnt of Labor, Bureau of Labor

Statistics.

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Table IV-12. Industrial Composition of Net Exports— ^ 1958, 1962, and Projected 1970

(Millions of 1958 dollars)

Industry number and title 2/

1958 - 1962

Projected 1970

3 percent

unemployment

4 percent unemployment

Basic

model

Basic

model

High 3/

durables

High 4/

services

1. Livestock and livestock products.................... 38 27 44 44 44 44

2. Other agricultural products.......................... 1,814 2,473 3,171 3,171 3,171 3,171

3. Forestry and fishery products........................ 30 38 62 62 62 62

4. Agricultural, forestry and fishery services......... 3 6 10 10 10 10

5. Iron and ferroalloy ores mining..................... 41 70 113 113 113 113

6. Nonferrous metal ores mining......................... 4 6 14 14 14 14

7. Coal mining........................................... 332 239 370 370 370 370

8. Crude petroleum and natural g as...................... 28 20 29 29 29 29

9. Stone and clay mining and quarrying................. 23 29 41 41 41 41

10. Chemical and fertilizer mineral mining.............. 55 64 90 90 90 90

11. New construction............... ...................... 2 2 4 4 4 4

12. Maintenance and repair construction................. - - - - - -

13. Ordnance and accessories............................. 17 135 264 264 264 264

14. Food and kindred products............................ 1,681 1,900 2,371 2,371 2,371 2,371

15. Tobacco manufactures................................. 437 480 605 605 605 605

16. Broad and narrow fabrics, yarn and thread mills.... 227 212 185 185 185 185

17. Miscellaneous textile goods and floor coverings.... 46 66 61 61 61 61

18. Apparel................................................ 273 298 342 342 342 342

19. Miscellaneous fabricated textile products........... 19 23 17 17 17 17

20. Lumber and wood products, except containers......... 110 149 284 284 284 284

21. Wooden containers..................................... 3 3 5 5 5 5

22. Household furniture............... ................... 16 14 11 11 11 11

23. Other furniture and fixtures................. ....... 18 13 10 10 10 10

24. Paper and allied products, except containers........ 262 395 598 598 598 598

25. Paperboard containers and boxes...................... 19 23 38 38 38 38

26. Printing and publishing..... .................... . 94 139 193 193 193 193

27. Chemicals and selected chemical products........... 676 977 1,523 1,523 1,523 1,523

28. Plastics and synthetic materials..................... 339 513 650 650 650 650

29. Drugs, cleaning, and toilet preparations............ 330 369 487 487 487 487

30. Paints and allied products........................... 27 27 39 39 39 39

31. Petroleum refining and related industries........... 657 627 776 776 776 776

32. Rubber and miscellaneous plastics products.......... 212 255 361 361 361 361

33. Leather tanning and industrial leather products.... 28 32 50 50 50 50

34. Footwear and other leather products................. 49 33 30 30 30 30

35. Glass and glass products............................. 69 81 106 106 106 106

36. Stone and clay products.............................. 100 108 137 137 137 137

37. Primary iron and steel manufacturing................ 535 416 550 550 550 550

38. Primary nonferrous metals manufacturing............. 305 399 553 553 553 553

39. Metal containers...................................... 26 23 25 25 25 25

40. Heating, plumbing and structural metal products.... 225 251 339 339 339 339

41. Stampings, screw machine products and bolts......... 28 35 44 44 44 44

42. Other fabricated metal products...................... 258 262 347 347 347 347

43. Engines and turbines.................................. 211 277 525 525 525 525

44. Farm machinery and equipment......................... 188 228 394 394 394 394

45. Construction, mining and oil field machinery....... 709 872 1,322 1,322 1,322 1,322

See footnotes at end of table.

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Table IV-12. Industrial Composition of Net Exports— 11/ 1958, 1962, and Projected 1970--Continued

(Millions of 1958 dollars)

Industry number and title 1958 -1 1962

Projected 1970

3 percent

unemployment 4 percent unemployment

Basic

model

Basic

model

High 3/

durables

High 4/

services

46. Materials handling swchlnery and equipment.......... 76 86 172 172 172 172

47. Metalworking machinery and equipment................ 331 524 976 976 976 976

48. Special industry machinery and equipment............ 370 555 915 915 915 915

49. General industrial machinery and equipment.......... 275 333 672 672 672 672

50. Machine shop products................................ 15 5 10 10 10 10

51. Office, computing and accounting machines........... 136 322 779 779 779 779

52. Service industry machines............................ 135 179 342 342 342 342

53. Electric industrial equipment and apparatus......... 281 344 601 601 601 601

54. Household appliances.................................. 208 194 321 321 321 321

55. Electric lighting and wiring equipment.............. 64 75 123 123 123 123

56. Radio, television and communication equipment....... 212 317 719 719 719 719

57. Electronic components and accessories..... ......... 90 147 292 292 292 292

58. Miscellaneous electrical machinery and supplies..... 71 77 129 129 129 129

59. Motor vehicles and equipment......................... 921 1,138 1,799 1,799 1,799 1,799

60. Aircraft and parts.................................... 559 1,068 1,883 1,883 1,883 1,883

61. Other transportation equipment....................... 299 191 267 267 267 267

62. Scientific and controlling Instruments.............. 183 336 638 638 638 638

63. Optical, ophthalmic and photographic equipment..... 107 150 309 309 309 309

64. Miscellaneous manufacturing................. ........ 125 188 250 250 250 250

65. Transportation and warehousing....................... 2,393 2,872 4,089 4,089 4,089 4,089

66. Communications; except broadcasting................. 65 82 111 111 111 111

67. Radio and television broadcasting........... ........ 9 20 37 37 37 37

68. Electric, gas, water and sanitary services.......... 36 35 54 54 54 54

69. Wholesale and retail trade........................... 1,500 1,990 2,836 2,836 2,836 2,836

70. Finance and Insurance................................ 23 28 63 63 63 63

71. Real estate and rental............................... 271 429 580 580 580 580

72. Hotels; personal and repair services, except auto... 192 202 303 303 303 303

73. Business services..................................... 249 330 425 425 425 425

74. Research and development............................. - 17 - - - -

75. Automobile repair and services....................... 1 1 1 1 1 1

76. Amusements............................................ 335 346 492 492 492 492

77. Medical, educational and nonprofit organisations.... 9 10 14 14 14 14

78. Federal Government enterprises....................... 61 76 66 66 66 66

79. State and local government enterprises.............. 3 -1 - - - -

80. Gross Imports of goods and services................. -21,082 -25,474 -34,308 -34,308 -34,308 -34,308

81. Business travel, entertainment and gifts............ - - - - - -

82. Office supplies....................................... - - - - - -

83. Scrap, used and secondhand goods.................... 250 324 510 510 510 510

84. Government industry................................... - - - - - -

85. Rest of the world Industry........................... 2,867 4,420 6,842 6,842 6,842 6,842

86. Household industry......................... .......... 1 1 2 2 2 2

87. Inventory valuation adjustment....................... - - - - - -

Total................................................ 2,206 4,545 10,499 10,499 10,499 10,499

1/ The detailed entries reflect gross exports of goods

and services from each producing Industry. Imports in total

are shown as negative entries in these columns on row 80.

Therefore, the sum of each column equals the GNP component,

"net exports of goods and services" for the selected year.

2/ See footnote 1, table IV-9.

3/ See footnote 2, table IV-2.

4/ See footnote 3, table IV-2.

NOTE: Because of rounding, sums of individual items may

not equal totals.

SOURCE: Data for 1958 are from the U.S. Department of

Coveerce, Office of Business Economics, Survey of Current

Business, September 1965. The year 1962 and 1970 projections

are estimated by the D.S. Department of Labor, Bureau of Labor

Statistics.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
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Table IV-13. Industrial Composition of Total Final Demand^ 1958, 1962, and Projected 1970

______________________ (Millions of 1958 dollars)_________________________________

Industry number and title 1958 - 1962

Projected 1970

3 percent

unemployment 4 percent unemployment

Basic

model

Basic

model

High 3/

durables

High 4/

services

1. Livestock and livestock products..................... 2,758 2,629 2,118 2,099 2,084 2,105

2. Other agricultural products.......................... 5,770 4,850 6,097 6,061 6,050 6,070

3. Forestry and fishery products........................ 194 249 237 230 229 231

4. Agricultural, forestry and fishery services......... 0 -27 -83 -83 -83 -83

5. Iron and ferroalloy ores mining...................... 18 65 115 115 115 115

6. Nonferrous metal ores mining......................... 163 293 226 222 222 222

7. Coal adning........................................... 631 530 739 734 733 735

8. Crude petroleum and natural gas...................... -11 41 63 63 63 63

9. Stone and clay mining and quarrying................. 41 52 70 69 68 69

10. Chemical and fertilizer mineral mining.............. 78 74 118 118 118 118

11. New construction...................................... 52,416 58,071 82,608 81,558 84,058 78,998

12. Maintenance and repair construction................. 4,420 5,075 6,504 6,504 6,504 6,504

13. Ordnance and accessories............................. 3,592 4,167 5,420 5,417 5,429 5,418

14. Food and kindred products............................ 47,633 53,514 68,349 67,360 67,131 67,586

15. Tobacco manufactures............... .................. 4,661 5,342 7,133 7,035 7,009 7,058

16. Broad and narrow fabrics, yarn and thread sdlls.... 879 1,229 1,562 1,536 1,554 1,541

17. Miscellaneous textile goods and floor coverings.... 813 1,124 1,689 1,665 1,803 1,669

18. Apparel................................................ 11,315 13,833 19,069 18,796 18,737 18,858

19. Miscellaneous fabricated textile products........... 1,221 1,466 2,105 2,076 2,102 2,083

20. Lumber and wood products, except containers......... 323 381 618 612 632 612

21. Wooden Containers..................................... -4 34 30 30 30 30

22. Household furniture................................... 2,634 2,933 4,822 4,751 5,176 4,756

23. Other furniture and fixtures......................... 1,099 1,490 2,353 2,315 2,462 2,229

24. Fapar and allied products, except containers........ 1,185 1,559 2,300 2,276 2,270 2,281

25. Paperboard containers and boxes...................... 61 187 153 152 152 152

26. Printing and publishing.............................. 2,813 3,580 5,080 5,006 5,132 5,053

27. Chemicals and selected chemical products............ 1,931 2,309 3,152 3,139 3,149 3,177

28. Plastics and synthetic materials..................... 319 649 775 774 774 774

29. Drugs, cleaning, and toilet preparations............ 4,419 5,592 9,791 9,654 9,625 9,737

30. Paints and allied products........................... 44 64 100 97 97 97

31. Petroleum refining and related industries.......... 8,855 10,378 14,667 14,473 14,426 14,514

32. Rubber and miscellaneous plastics products.......... 1,744 2,270 3,456 3,410 3,601 3,417

33. Leather tanning and Industrial leather products.... 25 28 55 55 55 55

34. Footwear and other leather products................. 2,704 2,803 3,010 2,953 2,957 2,964

35. Glass and glass products............................. 196 242 332 329 347 331

36. Stone and clay products.............................. 350 392 543 538 555 539

37. Primary iron and steel manufacturing................ 514 453 795 794 794 794

38. Primary nonferrous metals manufacturing............. 650 557 731 729 731 729

39. Metal containers...................................... 68 60 75 75 77 73

40. Heating, plumbing and structural metal products.... 951 1,185 1,836 1,819 1,910 1,756

41. Stampings, screw machine products and bolts........ 310 390 546 537 570 538

42. Other fabricated metal products...................... 927 1,239 1,839 1,820 1,884 1,817

43. Engines and turbines................................. 1,145 1,177 1,683 1,668 1,738 1,633

44. Farm M c h i n e r y and equipment......................... 1,878 1,927 2,841 2,804 2,975 2,676

45. Construction, mining and oil field machinery........ 2,060 2,340 4,070 4,028 4,216 3,869

See footnotes at end of table.

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Table 1V-13. Industrial Composition of Total Final Demand^ 1958, 1962, and Projected 1970--Continued

(Millions of 1958 dollars)

Industry number and title 1958 1962

Projected 1970

3 percent

unemployment

4 percent unemployment

Basic

model

Basic

model

High 3/

durables

High 4/

services

46. Materials handling machinery and equipment........... 593 717 1,141 1,128 1,180 1,111

47. Metalworking machinery and equipment................. 1,662 2,203 3,599 3,562 3,731 3,424

48. Special industry machinery and equipment.... ........ 1,814 2,535 3,988 3,937 4,157 3,754

49. General Industrial machinery and equipment........... 1,451 1,787 2,698 2,669 2,800 2,555

50. Machine shop products................................. 83 145 157 155 155 184

51. Office, computing and accounting machines............ 1,372 2,318 5,325 5,257 6,086 5,160

52. Service industry machines............................. 1,397 1,840 3,425 3,376 3,604 3,223

53. Electric industrial equipment and apparatus.......... 2,136 2,589 4,324 4,269 4,523 4,058

54. Household appliances.................................. 2,780 3,238 6,010 5,923 6,432 5,927

55. Electric lighting and wiring equipment............... 471 550 861 842 873 841

56. Radio, television and communication equipment........ 4,333 7,794 11,854 11,746 12,350 11,601

57. Electronic components and accessories................ 593 1,074 1,537 1,531 1,576 1,526

58. Miscellaneous electrical machinery and supplies..... 537 670 1,069 1,058 1,117 1,071

59. Motor vehicles and equipment.......................... 14,094 22,199 35,717 35,132 37,715 34,567

60. Aircraft and parts..................................... 8,730 10,624 11,380 11,357 11,467 11,271

61. Other transportation equipment........................ 2,820 3,500 5,841 5,772 6,126 5,610

62. Scientific and controlling instruments............... 1,800 2,541 3,555 3,520 3,658 3,470

63. Optical, ophthalmic and photographic equipment...... 909 1,180 2,188 2,161 2,277 2,141

64. Miscellaneous manufacturing........................... 3,184 4,008 6,768 6,673 6,998 6,653

65. Transportation and warehousing........................ 13,463 15,852 21,933 21,676 21,575 21,751

66. Communications; except broadcasting.................. 4,694 6,086 10,311 10,154 9,612 10,183

67. Radio and television broadcasting..................... 9 23 39 39 39 39

68. Electric, gas, water and sanitary services........... 8,929 11,017 17,271 17,006 15,843 17,142

69. Wholesale and retail trade............................ 67,627 79,848 115,198 113,772 116,752 113,574

70. Finance and insurance.................. ............... 12,028 13,872 21,336 21,017 19,570 21,196

71. Real estate and rental............ .................... 41,772 50,160 75,781 74,877 69,779 75,404

72. Hotels; personal and repair services, except auto..,. 9,788 11,228 15,856 15,491 14,447 15,620

73. Business services...................................... 3,184 4,355 5,594 5,526 5,329 5,620

74. Research and development.............................. 372 360 390 390 390 390

75. Automobile repair and services........................ 4,599 5,061 7,635 7,518 7,007 7,580

76. Amusements.......................... ......... ....... . 3,516 3,805 5,184 5,117 4,785 5,156

77. Medical, educational and nonprofit organizations.... 21,418 24,883 38,541 37,922 35,336 40,616

78. Federal Government enterprises........................ 817 977 1,448 1,424 1,343 1,434

79. State and local government enterprises............... 434 625 1,041 1,021 967 1,027

80. Gross imports of goods and services.................. -14,483 -17,575 -24,815 -24,921 -25,113 -24,885

81. Business travel, entertainment and gifts............. - - - - - -

82. Office supplies........................................ 207 331 492 480 480 480

83. Scrap, used and secondhand goods...................... -374 248 613 610 627 604

84. Government industry.................................... 39,029 43,483 55,228 54,759 54,759 55,287

85. Rest of the world Industry............................ 2,560 3,525 6,092 6,092 6,092 6,092

86. Household industry..................................... 3,503 3,323 3,603 3,549 3,295 3,580

87. Inventory valuation adjustment........................ -311 269 - - - -

Total................................................ 447,344 - /530,062 760,000 750,000 750,000 750,000

1/ In this context, total final demand is the sum of

demand from consumers, government, business, and foreign.

The data are sums of tables IV-2, 4, 8, 9, and 12.

2J The presentation of the data on 1958 purchases by

the Federal Government have been changed to conform with

the treatment of research and development (1962 and 1970).

2/ See footnote 2, table IV-2.

4/ See footnote 3, table IV-2.

5/ In table III-l, total final demand or GNP is

shown as $530.0 while in this table, it is shown as 530,062 (530.1

rounded) which is the unrounded sum of each of the categories of

final demand.

NOTE: Because of rounding, sums of Individual items stay not

equal totals.

SOURCE: Data for 1958 are from the U.S. Department of Commerce,

Office of Business Economics, Survey of Current Business, September

1965. The year 1962 and 1970 projections are estimated by the

U.S. Department of Labor, Bureau of Labor Statistics.

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(Percent distribution)

Table IV-14. Industrial Composition of Total Final Demand^

1958, 1962, and Projected 1970

Industry number and title 1958 1962

Projected 1970

3 percent

unemployment 4 percent unemployment

Basic

model

Basic

model

High it

durables

High 2/

services

1. Livestock and livestock products.................... .62 .50 .28 .28 .28 .28

2. Other agricultural products.......................... 1.29 .92 .80 .81 .81 .81

3. Forestry and fishery products........................ .04 .05 .03 .03 .03 .03

4. Agricultural, forestry and fishery services......... - -.01 -.01 -.01 -.01 -.01

5. Iron and ferroalloy ores mining...................... .01 .02 .02 .02 .02

6. Nonferrous metal ores mining......................... .04 .06 .03 .03 .03 .03

7. Coal mining........................................... .14 .10 .10 .10 .10 .10

8. Crude petroleum and natural gas...................... * .01 .01 .01 .01 .01

9. Stone and clay mining and quarrying................. .01 .01 .01 .01 .01 .01

10. Chemical and fertilizer mineral mining.............. .02 .01 .02 .02 .02 .02

11. New construction...................................... 11.72 10.96 10.87 10.87 11.21 10.53

12. Maintenance and repair construction................. .99 .96 .86 .87 .87 .87

13. Ordnance and accessories............................. .80 .79 .71 .72 .72 .72

14. Food and kindred products............................ 10.65 10.10 8.99 8.98 8.95 9.01

15. Tobacco manufactures................................. 1.04 1.01 .94 .94 .93 .94

16. Broad and narrow fabrics, yarn and thread mills.... .20 .23 .21 .20 .21 .21

17. Miscellaneous textile goods and floor coverings.... .18 .21 .22 .22 .24 .22

18. Apparel................................................ 2.53 2.61 2.51 2.51 2.50 2.51

19. Miscellaneous fabricated textile products........... .27 .28 .28 .28 .28 .28

20. Lumber and wood products, except containers......... .07 .07 .08 .08 .08 .08

21. Wooden containers..................................... * .01 * * * *

22. Household furniture................................... .59 .55 .63 .63 .69 .63

23. Other furniture and fixtures......................... .25 .28 .31 .31 .33 .30

24. Paper and allied products, except containers........ .26 .29 .30 .30 .30 .30

25. Paperboard containers and boxes...................... .01 .04 .02 .02 .02 .02

26. Printing and publishing...... ....................... .63 .68 .67 .67 .68 .67

27. Chemicals and selected chemical products............ .43 .44 .41 .42 .42 .42

28. Plastics and synthetic materials..................... .07 .12 .10 .10 .10 .10

29. Drugs, cleaning, and toilet preparations............ .99 1.06 1.29 1.29 1.28 1.30

30. Paints and allied products........................... .01 .01 .01 .01 .01 .01

31. Petroleum refining and related industries........... 1.98 1.96 1.93 1.93 1.92 1.94

32. Rubber and miscellaneous plastics products.......... .39 .43 .45 .45 .48 .46

33. Leather tanning and industrial leather products.... .01 .01 .01 .01 .01 .01

34. Footwear and other leather products................. .60 .53 .40 .39 .39 .40

35. Glass and glass products............................. .04 .05 .04 .04 .05 .04

36. Stone and clay products.............................. .08 .07 .07 .07 .07 .07

37. Primary Iron and steel manufacturing................ .11 .09 .10 .11 .11 .11

38. Primary nonferrous metals manufacturing............. .15 .11 .10 .10 .10 .10

39. Metal containers................................. . .02 .01 .01 .01 .01 .01

40. Heating, plumbing and structural metal products.... .21 .22 .24 .24 .25 .23

41. Stampings, screw machine products and bolts......... .07 .07 .07 .07 .08 .07

42. Other fabricated metal products...................... .21 .23 .24 .24 .25 .24

43. Engines and turbines.................................. .26 .22 .22 .22 .23 .22

44. Farm machinery and equipment......................... .42 .36 .37 .37 .40 .36

45. Construction, mining and oil field machinery........ .46 .44 .54 .54 .56 .52

See footnotes at end of table.

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Table IV-14. Industrial Composition of Total Final Demand^

1958, 1962, and Projected 1970--Continued

(Percent distribution)

Industry number and title 1958 1962

Projected 1970

3 percent

unemployment

4 percent unemployment

Basic

model

Basic

model

High 2/

durables

High 3/

services

46. Materials handling machinery and equipment........... .13 .14 .15 .15 .16 .15

47. Metalworking machinery and equipment.............. .37 .42 .47 .47 .50 .46

48. Special industry machinery and equipment............. .41 .48 .52 .52 .55 .50

49. General industrial machinery and equipment........... .32 .34 .36 .36 .37 .34

50. Machine shop products................................. .02 .03 .02 .02 .02 .02

51. Office, computing and accounting machines............ .31 .44 .70 .70 .81 .69

52. Service industry machines............................. .31 .35 .45 .45 .48 .43

53. Electric industrial equipment and apparatus.......... .48 .49 .57 .57 .60 .54

54. Household appliances.................................. .62 .61 .79 .79 .86 .79

55. Electric lighting and wiring equipment............... .11 .10 .11 .11 .12 .11

56. Radio, television and communication equipment........ .97 1.47 1.56 1.57 1.65 1.55

57. Electronic components and accessories................ .13 .20 .20 .20 .21 .20

58. Miscellaneous electrical machinery and supplies..... .12 .13 .14 .14 .15 .14

59. Motor vehicles and equipment.......................... 3.15 4.19 4.70 4.68 5.03 4.61

60. Aircraft and parts..................................... 1.95 2.00 1.50 1.51 1.53 1.50

61. Other transportation equipment........................ .63 .66 .77 .77 .82 .75

62. Scientific and controlling instruments............... .40 .48 .47 .47 .49 .46

63. Optical, ophthalmic and photographic equipment...... .20 .22 .29 .29 .30 .29

64. Miscellaneous manufacturing........................... .71 .76 .89 .89 .93 .89

65. Transportation and warehousing........................ 3.01 2.99 2.89 2.89 2.88 2.90

66. Communications; except broadcasting.................. 1.05 1.15 1.36 1.35 1.28 1.36

67. Radio and television broadcasting.................... * .01 .01 .01 .01

68. Electric, gas, water and sanitary services........... 2.00 2.08 2.27 2.27 2.11 2.29

69. Wholesale and retail trade............................ 15.12 15.06 15.16 15.17 15.57 15.14

70. Finance and insurance................................. 2.69 2.62 2.81 2.80 2.61 2.83

71. Real estate and rental................................ 9.34 9.46 9.97 9.98 9.30 10.05

72. Hotels; personal and repair services, except auto.... 2.19 2.12 2.09 2.07 1.93 2.08

73. Business services...................................... .71 .82 .74 .74 .71 .75

74. Research and development.............................. .08 .07 .05 .05 .05 .05

75. Automobile repair and services............... ........ 1.03 .95 1.00 1.00 .93 1.01

76. Amusements............................................. .79 .72 .68 .68 .64 .69

77. Medical, educational and nonprofit organizations.... 4.79 4.69 5.07 5.06 4.71 5.42

78. Federal Government enterprises........................ .18 .18 .19 .19 .18 .19

79. State and local government enterprises............... .10 .12 .14 .14 .13 .14

80. Gross imports of goods and services.................. -3.24 -3.32 -3.27 -3.32 -3.35 -3.32

81. Business travel, entertainment and gifts............. - - - - - -

82. Office supplies........................................ .05 .06 .06 .06 .06 .06

83. Scrap, used and secondhand goods..................... -.08 .05 .08 .08 .08 .08

84. Government industry.................................... 8.72 8.20 7.27 7.30 7.30 7.37

85. Rest of the world industry............................ .57 .67 .80 .81 .81 .81

86. Household industry..................................... .78 .63 .47 .47 .44 .48

87. Inventory valuation adjustment........................ -.07 .05 - - - -

Total................................................. 100.00 100.00 100.00 100.00 100.00 100.00

♦Less than .01.

1/ In this context, total final demand is the sum of

demand from consumers, government, business, and foreign.

The data are sums of tables IV-2, 4, 8, 9, and 12.

2/ See footnote 2, table IV-2.

3/ See footnote 3, table IV-2.

NOTE: Because of rounding, sums of individual items may not

equal totals.

SOURCE: Data for 1958 are from the U.S. Department of Commerce

Office of Business Economics, Survey of Current Business. September

1965. The year 1962 and 1970 projections are estimated by the

U.S. Department of Labor, Bureau of Labor Statistics.

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Table IV-15. Industrial Composition of Total Final Demand by Major Industry Group

Selected Years and Projected 1970

(Millions of 1958 dollars)

Selected years Projected 1970

Major industry group 1958 1962 1965— 7

3 percent

unemployment

4 percent unemployment

Basic

model

Basic 2/

durables

Basic 2/

Basic services

model

447,344 530,062 609,600 760,000 750,000 750,000 750,000

Agriculture.................................................. 8,722 7,701 6,948 8,369 8,307 8,280 8,323

Mining................................................... 920 1,055 1,511 1,331 1,321 1,319 1,322

4/

Construction ” ............................................. 56,836 63,146 68,784 88,862 88,062 90,562 85,502

Manufacturing................................................ 158,074 196,404 232,949 282,417 278,791 286,925 276,963

Durables................................................. 67,452 90,479 115,258 139,971 138,334 146,351 135,947

Nondurables............................................. 90,622 105,925 117,691 142,446 140,457 140,574 141,016

Transportation.............................................. 13,463 15,852 18,122 21,933 21,676 21,575 21,751

Communications and public utilities........................ 13,632 17,126 20,125 27,621 27,199 25,494 27,364

Trade........................................................ 67,627 79,848 93,305 115,448 113,772 116,752 113,574

Finance, insurance, and real estate........................ 53,800 64,032 76,500 97,117 95,894 89,349 96,600

Services..................................................... 42,877 49,692 55,432 73,200 71,964 67,294 74,982

Government enterprises...................................... 1,251 1,602 1,770 2,489 2,445 2,310 2,461

General government — l....................................... 39,029 43,483 46,799 55,228 54,759 54,759 55,287

Federal.................................................. 19,951 21,184 20,856 22,014 21,987 21,987 21,987

State and local......................................... 19,078 22,299 25,943 38,214 32,772 32,772 33,300

6 /

Miscellaneous — ............................................. 5,585 7,696 9,450 10,800 10,731 10,494 10,756

Final demand Imports........................................ 6,795 8,186 9,024 9,920 9,814 9,622 9,850

Total Imports — ^.......................................... -21,277 -25,761 -31,200 -34,735 -34,735 -34,735 -34,735

Percent distribution

100.00 100.00 100.00 100.00 100.00 100.00 100.00

Agriculture.................................................. 1.95 1.45 1.14 1.10 1.11 1.10 1.11

Mining....................................................... .21 .20 .25 .18 .18 .18 .18

Construction................................................. 12.71 11.91 11.28 11.69 11.74 12.07 11.40

Manufacturing................................................ 35.34 37.05 38.22 37.16 37.17 38.26 36.93

Durables................................................. 15.08 17.07 18.91 18.42 18.44 19.51 18.13

Nondurables............................................. 20.26 19.98 19.31 18.74 18.73 18.74 18.80

Transportation.............................................. 3.01 2.99 2.97 2.89 2.89 2.88 2.90

Communications and public utilities........................ 3.05 3.23 3.30 3.63 3.63 3.40 3.65

Trade........................................................ 15.12 15.06 15.31 15.19 15.17 15.57 15.14

Finance, insurance, and real estate........................ 12.03 12.08 12.55 12.78 12.79 11.91 12.88

Services..................................................... 9.58 9.37 9.09 9.63 9.60 8.97 10.00

Government enterprises...................................... .28 .30 .29 .33 .33 .31 .33

General government.......................................... 8.72 8.20 7.68 7.27 7.30 7.30 7.37

Federal................ ................................. 4.46 4.00 3.42 2.90 2.93 2.93 2.93

State and local......................................... 4.26 4.21 4.26 4.37 4.37 4.37 4.44

Miscellaneous................................................ 1.25 1.45 1.55 1.42 1.43 1.40 1.43

Final demand Imports........................................ 1.52 1.54 1.48 1.31 1.31 1.28 1.31

Total imports............................................. -4.76 -4.86 -5.12 -4.57 -4.63 -4.63 -4.63

1/ This GNP is a preliminary revision of the GNP shown in

table III-l and table A-l. The revisions are minor and do not

substantially affect the total or distribution of final demand.

2/ See footnote 2, table IV-2.

3/ See footnote 3, table IV-2.

4/ Construction includes both new and maintenance construction.

5_/ Does not include compensation of government forceaccount construction employees which is included in construction.

_6/ Includes industries 81 through 83 and industries 85

through 87.

7/ The item "total imports" is an adjustment factor to

total final demand to balance to GNP.

NOTE: Because of rounding, sums of individual items may

not equal totals.

SOURCE: Data for 1958 are from the U.S. Department of

Commerce, Office of Business Economics, Survey of Current

Business, September 1965. The year 1962 and 1970 projections

are estimated by the U.S. Department of Labor, Bureau of Labor

Statistics.

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Chapter V. The Interindustry Employment Table

The interindustry employment table provides the means for converting the projections of final demand for goods and services into estimates

of industry employment requirements. 31/ The table is derived by converting the total requirements table of the basic set of input-output

tables into employment terms. The interindustry employment table shows

the direct and indirect employment required in each industry to produce

the raw materials, parts, components, fuel, transportation, distribution, etc., embodied in the various final products and services produced

by the economy.

The application of the employment conversion factors in the interindustry employment table to the projections of final demand described

in the previous chapter yields the projections of industry employment

requirements. Before the interindustry employment table can be used for

this purpose, however, the basic 1958 input-output relationships have to

be projected to 1970 to take account of changes in technology, substitution of one type of material for another, product mix, industry integration, etc. In addition, the estimates of unit labor requirements used

to convert output to employment also need to be projected to 1970. The

interindustry employment table used in this bulletin reflects the projection of both input-output relationships and unit labor requirements

to 1970.

Input-Output Coefficients

Causes of changes in coefficients. Input-output relationships or

coefficients may change for a variety of reasons. Obviously, technological change is a major factor underlying changes in coefficients, from

period to period. For example, the introduction of nuclear electric

power plants requires a new input--nuclear fuel. Growth of nuclear

electric power reduces the relative need for other fuels such as coal

and gas.

Other factors such as product mix or price changes can also cause

significant changes in coefficients. Product mix problems result from

the industry classification used. In dividing the U.S. economy into

about 80 sectors, very large industry groups such as "food and kindred

products" or "chemicals" are created. These large sectors include different commodities and services, each with its own set of input requirements. If the output of the various commodities changes at different

31/ In concept, there should be a separate interindustry employment

table for each set of final demand projections. Only the one that is

used for converting the "bill of goods" in the basic 4-percent unemployment model into employment is shown. The implied differences in productivity are discussed on page 101.

85

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rates, then the total input coefficients of the sector may also be

changed. This can occur even if there are no technological changes in

the producing industries. For example, plastics and rubber are both

included in the "rubber and miscellaneous plastics products" sector.

Since the output of plastic products is growing more rapidly than rubber

products and the material and service requirements of each differ, then

the sector coefficients may change for this reason alone.

Price competition can also change coefficients. Iron ore and scrap

are the two basic and interchangeable sources of raw material for the

steel industry. The current technological trend is toward the use of

more iron ore and less scrap. However, in 1963 the use of scrap

increased relative to iron ore due, in part, to the low price of scrap

in that year.

Another kind of coefficient change, difficult to project, arises

from the definition of an industry's output. The input-output system

generally records market transactions. Many intermediate materials may

not go through a market transaction. Instead, these materials may be

produced and used within a single plant. If the operation of an industry changes so that more of a previously purchased "intermediate" is now

manufactured intraplant, then the input-output coefficient may be

affected.

Other sources of coefficient changes arise from design changes,

varying levels of output requiring different mixes of materials, and

mixes of several processes using different materials for manufacturing

the same final product.

Most coefficients change slowly, since existing processes often use

long-lived capital equipment. Even a profitable innovation, such as the

basic oxygen steel furnace (BOF), takes time to become widely adopted

throughout the industry. Oxygen furnaces were first introduced into the

United States in 1954. In the first three quarters of 1965, they still

accounted for only about 17 percent of ingot steel output. This process

is spreading rapidly, however, and it is estimated that the BOF will provide over 40 percent of total ingot supply by 1970.

A variety of methods are used to estimate the 1970 coefficients.

In general, the approaches include analyses of specific industries and

coefficients and more general methods which cover all coefficients.

The coefficient projections used to develop the 1970 interindustry

table represent a synthesis of both approaches. The projections are

generally based on an evaluation of past trends in coefficients, to the

extent that these can be ascertained. They are modified in a number of

areas to take account of changing technology and other factors. Some of

the techniques and studies used to develop 1970 coefficients are described

below.

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Detailed industry studies. The projections of inputs for the agricultural sector were developed by the Economic Research Service, U.S.

Department of Agriculture.32/ The coefficient projections for the livestock and crop sectors were part of a broad analysis of agriculture.

Inputs such as fertilizer, feed, seed, petroleum products, etc., were

estimated within a framework of projected yields, acreage planted, trends

in per capita food and textile consumption, etc. The broad scope of

these estimates was made possible by the wealth of available data.

The study indicates that selected purchased inputs, including agricultural services, fertilizers, insecticides, lime, and seed are rising

relative to output. Sectors supplying these inputs are agricultural

services, chemicals, and trade. The long-term trend in agriculture

toward using more purchased materials and services and fewer selfsupplied inputs is expected to continue. For example, farmers increasingly are purchasing high-grade seed instead of retaining a portion of

the crop for this purpose. Significant expansion has already occurred

in services provided to farmers. Such services, provided both by service and trade establishments, include feed and fertilizer mixing, delivery to the farm, and distribution of fertilizer and insecticides

directly on the fields and crops.

The above trends are resulting in large investments being made in

fertilizer, sulphuric acid, and related plants and in the development of

supporting mineral industries, such as sulphur and phosphate mining.

The growth in both custom material mixing and the service requirements

of farmers is resulting in a number of new establishments specializing

in these activities. Such establishments are often sponsored by or are

part of large manufacturers of agricultural materials, such as fertilizers .

In contrast to the agricultural sector's wealth of data on inputs,

the data on intermediate inputs into the minerals sector are quite

limited. In addition, the diversity of mining operations, even within

a single industry, makes any given mining operation unique. As a result,

the Bureau of Mines 33/ projections of input coefficients for the minerals sectors were based, to a considerable extent on the knowledge and

experience of its industry specialists. This was the only way these

32/ The work in this area was under the direct supervision of the

late Robert Masucci.

33/ The projections by the Bureau of Mines were coordinated by

Robert Johnson, Jr., under the direction of William Vogley, Chief Economist for that Bureau.

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estimates could be developed short of an extensive survey. It should be

noted here that Bureau of Mines data on output and uses of minerals were

very useful in developing coefficient projections in the mineral and ore

processing manufacturing industries.

Projections for other important sectors of the economy were developed by the Harvard Economic Research Project.34/ These were based on

individual industry studies and across-the-board approaches. The industry studies covered the more important inputs into a number of manufacturing industries, particularly the textiles, glass, and metalworking

sectors. They also covered several nonmanufacturing industries, including gas and electric utilities and transportation.35/ Summaries of technological developments in two major sectors--steel and textiles--may be

useful in illustrating the approach used in these studies.

Technological change in the iron and steel sector, particularly

through the introduction of new and improved types of capital equipment,

often results in a different and, in net, more economical material use

per unit of final product. Three major materials of steelmaking have

been affected--oxygen, iron ore, and scrap.

The greater use of oxygen has contributed significantly to the improved rates of output in steelmaking. BOF, which require large quantities of oxygen, are replacing open hearth furnaces at a rapid rate. The

industry has also found that the speed and efficiency of both open hearth

and blast furnaces are increased by the use of oxygen. In these two

stages of steelmaking, the cost of converting furnaces to the use of oxygen is relatively modest. However, a nearby source of vast quantities

of oxygen is generally needed. Oxygen plants, requiring large investments, are therefore being added to the traditional steel triumvirate of

coke ovens, blast furnaces, and steel mills.

In some cases, the oxygen plant is owned by the steel company, and

the oxygen becomes "produced and consumed" in a single establishment.

Thus, it is not included in input-output coefficients. In other cases,

it is purchased or transferred from the oxygen plant operator and represents an interplant transfer. These transfers are counted in computing

the coefficient. Therefore, the projected coefficient for oxygen in

1970 includes an estimate of the possible degree of integration in the

production of oxygen.

34/ The work on coefficient projections at the Harvard Economic

Research Project is under the direction of Dr. Anne Carter. Professor

Wassily Leontief is the Director of the Harvard Economic Research Project.

35/ See the bibliography for the industries covered by the Harvard

Economic Research Project program.

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Continuous casting is another new process requiring sizable new investment. In this process, slabs and billets are cast directly from

molten metal, eliminating the previous ingot stage which required handling and reheating prior to being rolled into slabs and billets. This

bypassing of several steps in the processing of raw materials not only

cuts costs, but also results in the saving of scrap formerly generated

in the old process. Continuous casting, presently quite small, is growing rapidly and is expected to be significant by 1970.

Iron ore and scrap are the two basic sources of metal in the steel

industry. In the last decade, the depletion of domestic high-grade ore

sources has been an impetus to the development of processes for upgrading the vast quantities of available leaner grades. These new techniques

result in a processed ore with a higher iron content and more optimal

forms than even the old high-grade natural ore. Such processed ore commands a premium price, as it results in substantial savings of time and

material in the operation of blast furnaces. However, the lean ore requires a very large capital expenditure at or near the mine, as the processing is a factory-type operation. The efficiency of processed ore is

such that, by 1970, virtually all ore will be processed before being

used in blast furnaces.

New developments have also had a significant influence on the scrap

sector. So far, the rapidly growing basic oxygen process has been limited in the extent to which scrap can be used, while the cost of iron

derived from iron ore has been reduced. On the other hand, the output

of electric furnaces, which are heavy scrap users, is growing. More recently, the resurgence in the use of castings, made in large part from

scrap, has bolstered the scrap market. Mounting supplies of scrap and

the weakening in the market for low-grade scrap, however, has placed

considerable downward pressure on scrap prices. As a result, the scrap

industry has been required to improve its product by better grading and

classification. There are indications that some scrap dealers may become pig iron suppliers by converting the scrap into ingot pig, especially for foundry (castings) uses. In general, it can be assumed that

the industry may change, but scrap use will remain at a high level.

For many years, the steel sector has been successfully decreasing

the quantity of coal (coke) used per ton of steel output. This is

expected to continue as improved iron ore requires less coke and as continuous casting eliminates the "soaking" or reheating of ingots. These

improvements will also help to conserve the limited supplies of highgrade coking coal.

An important aspect of these and other changes is the decreased

amount of waste and scrap arising in internal operations, which means

that less material and raw steel are needed per unit of final product.

Ore "fines" (small ore particles), previously vulnerable to losses are

rendered more usable through new processes. Larger heats (batches) in

239-877 0 - 6 6 - 7

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blast furnaces and elimination of scrap made possible by continuous

casting are examples of material saving operations. On the other hand,

steel products are often being upgraded or changed, with the result that

losses at subsequent processing operations may be greater. For example,

more intensive processing, such as finer machining, may create more

scrap than previously. Net losses due to this type of change are hard

to measure, and no specific estimate of such changes are included in the

1970 projections.

The textile area, studied by the Harvard Economic Research Project,

includes several sectors in the input-output system. Significant trends

in materials use show a continuation of the substitution of synthetics

for natural fibers, substitution of noncellulosics 36/ (such as nylon)

for cellulosics (rayon), and the increased use of chemicals.

Increased use of synthetics is derived by pure substitution (i.e.,

rayon for cotton) and by partial substitution, as in blends. Blends of

natural and synthetic fiber impart the useful qualities of each fiber to

the fabric. Initially, blends tend to displace natural fibers but in

the longrun they may add an element of stability to the natural fiber

market. That is, the natural fiber may share in the increased use of

the blended fabric. Nevertheless, the continuing rapid growth in synthetics has led to 1970 coefficients which assume an increase in their

relative share of the fiber market. Also, other uses, beyond those

available to the natural fibers, have been found for the synthetic materials. An example is the use of nylon instead of metal for rollers and

bearings.

In addition, the relatively new cellulosic fibers are themselves

being displaced by noncellulosics and fiberglass. Recent improvements

in the cellulosics (sometimes so different as to require a new plant)

are aiding this type of fiber in its contest for a share of the market,

but the newer noncellulosic fibers continue to grow rapidly. Fibers

with unusual qualities are being made from other materials, such as borates and will probably be in use by 1970.

Increased use of chemicals in textiles is an outgrowth of successful efforts at imparting new and useful qualities to cloth (permanent

press characteristics, dirt shedding ability, etc.). Many of these

processes require some type of chemical coating or treatment of the

fabric to obtain the desired result. Therefore, the chemical input into

the textile sectors has been increased significantly for 1970.

General approaches. In addition to the industry studies described

above, the Harvard Economic Research Project used another approach to

the projection of coefficients to 1970. This involved aggregation and

adjustment of the earlier and more detailed 1947 input-output table so

36/ Cellulosics (rayon) are made from wood pulp, i.e., cellulose.

The term noncellulosics refers primarily to petroleum-based fibers,

such as nylon. Use of fiberglass made from glass is also growing

rapidly.

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as to make it consistent with the more recent 1958 input-output table.

The two tables were then compared to ascertain the major changes in coefficients between 1947-58. The projections developed by the Harvard

Project were based in part on the analysis of the 1947-58 coefficient

changes. The 1947-58 changes were not extrapolated mechanically but

were used, along with information from a wide variety of sources, to

develop coefficient projections on a selective basis.

Another general approach to the analysis of aggregate coefficient

changes was developed by BLS, Division of Economic Growth. It was used

to ascertain the change between 1958 and 1962. This method involves

several steps. First, estimates are developed of total output and final

demand for each industry during a particular year--in this instance,

1962.37/ Deducting the estimate of final demand from industry output

yields an estimate of actual intermediate output. In the second step,

another estimate of intermediate demand is derived by applying the 1958

coefficient matrix to the actual 1962 outputs. If there have been no

substantial changes in input-output coefficients since the base period

(1958), application of the base year coefficients to the industry output

levels for the more recent year should yield approximately the same esti

mate of total intermediate output as the "actual" intermediate output.

If the two estimates differ, this implies that, in the aggregate, the

intermediate industries using a particular industry's output have increased or decreased their use of this industry's product or service per

dollar of their own output.

The method is useful in determining how coefficients have changed

in the aggregate; that is, for the total intermediate use of the output

of a particular industry. It does not indicate how the change may be

distributed among the individual consuming industries. The coefficient

changes implied by the 1962 study were compared with similar estimates

derived from a 1961 input-output table being developed by the Office of

Business Economics.

This comparison attempted to determine whether the derived changes

in coefficients reflected a time trend. The rates of coefficient change

implied by the 1962 study, modified on the basis of the 1961-62 comparison, were used as a check on the independent industry coefficient projec

tions and also to determine whether further coefficient changes were

needed. In some cases the study results justified adjustments to the

independently estimated coefficients. Also, a number of previously unchanged 1958 coefficients were modified for inclusion in the 1970 inputoutput chart.

37/ The 1962 final demand estimates, used as part of the method to

determine coefficient changes between 1958 and 1962, are the same estimates used in the previous chapter on changes in the final demand "bills

of goods."

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The estimates from both approaches--the individual industry analyses

and the general approach--were combined to complete a coefficient matrix

for 1970. Precedence was given to those coefficients derived from analysis of individual industries, with the residual coefficients determined

through the more aggregative approaches. However, before inclusion in

the final set of coefficient projections, the projections developed in

the individual industry studies were reviewed. In a number of instances,

they were modified on the basis of additional information. The final

input-output coefficient projections, as in other parts of the economic

growth model, were arrived at after a series of successive approximations.

1970 coefficient projections. A change in the unit requirements

(coefficients) for intermediate materials and services affects both the

industry in which the change takes place and the industry which produces

the intermediate good or service. The projections of the input-output

coefficients can, therefore, be described in terms of the change in

input coefficients of the purchasing industry or from the viewpoint of

the net impact on the producing industry.

The section on detailed industry studies discussed coefficient projections in which the analysis was focused on the industry as a consumer

of other industry products. In this section the discussion will examine

the impact of coefficient changes on industries from a different viewpoint--namely, as a seller of output to other industries.

Table V-l summarizes the net impact of the coefficient projections

on the industries producing intermediate goods and services. It shows,

for example, that by 1970 the coal requirements per dollar of output of

all intermediate coal-using industries (excluding final demand use of

coal) is projected to be about 82 percent of the 1958 level. This is a

decline of about 18 percent. This does not mean that coal output is projected to decline by this amount. The industries using coal may grow

sufficiently so that their combined coal requirements may, in fact,

increase. Collectively, however, their coal requirements per dollar of

output are declining.

In a similar fashion column 1 of the table shows the direct effect,

on the output of each industry, of the weighted change (1958-70) in unit

requirements by all intermediate users of the industry*s output. The

second column indicates the average annual rate of change between 1958

and 1970. The third column provides information on how much of the

total output of each industry is consumed by intermediate industries,

as distinguished from consumer, government, investment, and net export

demand.

It might be useful to summarize the major impact of the coefficient

changes for selected industries. In industry 1, livestock and products,

the modest decrease is due in part to the relative decline in the sale

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of dairy products to food processing, per dollar of output. A contributing factor in this general change is the increased amount of processing by the food and kindred products industry.

Industry 2, other agricultural products, is comprised of all farm

crops. The decline here is brought about by several factors, including

reductions as inputs into food processing (industry 14), tobacco (industry 15), and textiles (industries 16 and 17). The latter involves the

substitution of synthetics for cotton. This substitution is offset

elsewhere in the table by the growth in the use of synthetic fibers

(industry 28).

The projected growth in iron ore (industry 5) results from the increased use of this ore by the primary iron and steel manufacturing

industry. This is due to the fact that the oxygen process, which is replacing the open hearth process, is limited in the quantity of scrap it

can use. As a result, more pig iron is needed, and blast furnaces which

use more iron ore will supply more of the raw material for steel.

The decline in the coefficient for coal mining (industry 7) results

from three major contributing factors. The first of these is the declining use of coal for process heat. The second is the general decline due

to the competition from other fuels, such as gas and oil. The third

factor is the increasing efficiency in the use of coal. This is true

for uses in processing, generation of electric energy, and steelmaking.

It was noted earlier that there are several reasons, other than a

change in technology, why coefficients can change in an industry. An

illustration of this can be seen in ordnance and accessories (industry

13). A part of the drastic decline projected for industry 13 is due to

the expanding practice of the defense sector to buy all items of a system directly and provide them for private prime contractors as government-furnished equipment. This operates, in the input-output system, as

a cutting back in intermediate transactions between the various sectors,

particularly the ordnance and aircraft industries. Another example can

be seen in the aircraft industry, which produces missiles as a secondary

product. That is, proportionately more and more missile production is

being done in the ordnance industry, where it is a primary product, than

in the aircraft industry. As a result, the reduction in the fictitious

sales or transfers of missiles to the ordnance industry shows up as a

coefficient reduction for the output of the aircraft industry.

In the lumber and wood products sector (industry 20) the modest

growth rate of the coefficient has masked the spectacular growth in the

use of plywood. Other lumber products are growing more slowly.

Wooden containers (industry 21) has a very sharp decline in its coefficient. This decline is attributable to competitive inroads of other

materials in providing alternative packaging or containers. Also some

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industries which still use wooden containers are purchasing the raw materials and fabricating the wooden containers themselves. The net result

of these two factors is the sharp drop in intermediate output relative

to 1958.

The printing and publishing industry (26) is another illustration

of coefficient change which is nontechnological. A large part of the

output of printing and publishing is the advertising revenue of newspapers and magazines. In the input-output system, this revenue is

transferred to industry 73, business services, which includes advertising.

In the business services sector, other forms of advertising revenue,

largely TV, are expected to grow at a very rapid rate. Since this is

true, the projected advertising revenues of publications will be a lesser

part of total advertising revenue in 1970 than in 1958. In this industry,

the coefficient decline comes from a slower growth of newspaper and magazine advertising than that expected for TV advertising.

The chemicals industry (27) coefficient index is increasing. This

is due to several factors. First, a number of basic chemicals are continuing their growth. An important example is the expansion of chemicals into the fertilizer sector.38/ Second, certain customers, such as

the apparel and textile industries, are increasing their use of chemicals. As mentioned previously, this is for the treatment of materials

to give them greater qualities of resistance to dirt and wrinkling.

Other uses of chemicals which show rapid growth are fertilizer by the

agricultural sector and oxygen by the iron and steel industry.

Petrochemicals, which are products of the petroleum industry (31),

supply the primary inputs for plastics and synthetics. Petrochemicals

are growing very rapidly. However, this growth is obscured by the relatively slower growth of fuel oils, which are the major products of the

petroleum industry. Plastics and synthetic materials (industry 28) also

show an increase which is widespread throughout most intermediate users.

At the same time, it is large in relation to the coefficient changes of

other industries. This change is a continuation of the expansion of

plastics and synthetic materials into a wide range of manufactured items,

such as textiles, containers, building materials, and a wide variety of

household items.

There is a projected decline for the coefficient in industry 33,

leather tanning and industrial leather products. It is related, in part,

to the substitution of other materials--such as "corfam" for leather.

38/ Since fertilizer and basic organic and inorganic chemicals are

both in the same sectors, this change is, in fact, an increase of the

intraindustry transactions or purchases by this industry from itself.

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The coefficient projections show moderate declines in the use per

unit of output of primary iron and steel (industry 37) and moderate increases for primary nonferrous metals (industry 38). The increase in

the nonferrous metal industry is almost entirely due to the expanded use

of aluminum rather than any of the other nonferrous metals.

The decline in the coefficient index of stampings, screw machine

products, and bolts (industry 41) is due partly to the increase in new

and alternative fastening methods. Epoxy glues are an example of these

newer developments.

Industry 51, office computing and accounting machines, shows no

change in its coefficient index. This rather surprising result is due

to two factors. First, much of the output goes into capital equipment

and thus is not in the intermediate output. Second, receipts from leasing of business machines are a declining portion of this industry's

output, since more firms are purchasing these machines directly.39/

Industry 56, radio, TV, and communication equipment, shows the

largest coefficient increase of any industry. This is related to a general and widespread increase in the use of communications. With the expansion of communications equipment, an increase in the proportion of

the cost of each industry's output must go for spare parts for this

equipment. At the same time, and perhaps the most important, there is a

very large expansion in the amount of electronic equipment --guidance,

radar, and sonar--which goes into most military hardware. Closely related to this industry is sector 57, electronic components. This industry

supplies the basic inputs--transistors, tunnel diodes, and capacitors--

used in television sets, military equipment, and computers.

The increase for electric, gas, water, and sanitary services (industry 68) reflects the widespread expansion in the power requirements, per

dollar of output, for most manufacturing and a number of nonmanufacturing

industries.

Industry 75, automobile repair and services includes truck and auto

leasing. The increased coefficients projected are related to the expanded

use of motor vehicles, particularly trucks in business and truck and auto

leasing.

Construction coefficient projections. Although the input-output

table shows all new construction as a single industry (industry 11), the

coefficients for this industry are a weighted average of coefficients

39/ Leasing receipts are considered a secondary product of sector 51

and are transferred to the primary industry--in this case sector 73.

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for many different types of new construction-highway, residential, etc.

Information on the inputs for various types of construction was developed by the Office of Business Economics as part of its basic 1958

input-output study.40/ These estimates were based, in part, on information obtained by BLS in its studies of direct and indirect employment

generated by various types of construction.41/

The coefficients for the new construction industry in the 1970

interindustry employment table are derived by combining the coefficients

for each type of construction. This method takes into account the relative growth rate projected for each type of construction between 1958

and 1970. In addition, the coefficients for two major types of construction, single family housing and highway construction, have been modified

to take account of changes in material requirements projected to 1970.42/

The study on single family housing indicates the increasing importance of prefabricated components. Although newer materials are being

used, such materials often come from the traditional supplying industries.

As a result, coefficient changes in this respect are relatively modest.

An exception occurs in the use of wood, for which the decline per unit

is noteworthy.

In the case of highways, the type of highway being built is unquestionably being improved. These better highways require more material

per mile of road. However, the unit of highway construction is $1 million of contract cost. Changes in this unit are less than the changes

would have been per mile. Further, many of the technological innovations in highway construction are laborsaving rather than material

saving. As a result, drastic changes in coefficients are the exception.

Here also, the projected decline in wood use is significant. Blasting powder (from chemicals) is declining because of cheaper explosives

rather than a lesser use of blasting. Steel use patterns are changing

in that some of the steel now comes from the prestressed and preformed

components. These components replace some of the former direct steel

use by the contractor.

The input from the stone and clay manufacturing sector is increasing due to the type of road. There is an increased use of prefab cement

and concrete products. Bitumens are declining slightly in the Federal

40/ Norman Frumkin, "Construction Activity in the 1958 Input-Output

Study," Survey of Current Business, May 1965, pp. 13-24.

41/ Claiborne M. Ball, "Employment Effects of Construction Expenditures," Monthly Labor Review, February 1965,pp. 154-158.

42/ Jack Faucett Associates, Projections to 1970 of Input Coefficients for Selected Construction Activities (unpublished), Silver Spring,

Maryland, July 1964.

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aid highway program. However, little information is available on the

status of non-Federal aid roads. Therefore, the coefficient has not been

changed.

Output Per Man-Hour

Method. The impact of changes in material and service coefficients

on output and, therefore, employment varies from industry to industry.

In some cases, as in coal mining, employment is reduced. In others, such

as plastics and synthetic materials, employment is increased as a result

of the substitution of new materials for older types. In contrast, longterm changes in unit labor requirements or its reciprocal, output per

man-hour, have almost always resulted in reductions in manpower requirements. The 1970 interindustry employment table attempts to take account

of the combined effect of both of these projected changes. The inputoutput coefficient changes have already been discussed. This section is

concerned with the other element in the table--the projections of output

per man-hour.

The projections of output per man-hour are developed initially on

the basis of preliminary estimates of past trends in industry productivity. The trend during the 1957-63 period is used for the initial projection. Prior to the current period, 1957 is the last year in which

unemployment was close to 4 percent and 1963 is the latest year for

which comprehensive, but still preliminary, estimates of industry output

are available.

Furthermore, the average annual rate of increase in total private

output per man-hour for the 1957-63 period is about the same as that for

the 1957-65 period. This period was used as the basis for projecting

private output per man-hour to 1970 in chapter II.

The initial projections of output per man-hour for a number of industries have been reviewed and modified to take into account a variety

of special factors.

The projections have been modified in most cases where the derived

industry output rate is substantially higher or lower than the past rate.

The historical trend in output per man-hour is, therefore, not considered

consistent with the projected rate of output. For some industries, both

data on employment and rough indicators of output between 1963 and 1965

imply substantial departure from the past rate of productivity. In such

instances, the projections of output per man-hour have been adjusted to

reflect, to some extent, the more recent changes. In a few industries,

the projection based on the 1957-63 trend has been modified, because the

product mix of the projected period is different from that of the past

period. Industry classification problems may also distort past rates of

increase in output per man-hour.

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In addition, for several industries where there are indications of

significant technological changes, allowances have been made for acceleration in the rate of productivity gain.

Pro jections--1963-70. As previously indicated in the discussion of

the factors underlying the 1970 projections of potential GNP (chapter

II), the average rate of increase in output per man-hour for all industries in the private sector is 3.2 percent a year. (Productivity in the

government sector, consistent with the treatment in the national income

constant dollar accounts, is assumed to remain unchanged.)

Within the private sector, there is a wide range of industry productivity gains around the 3.2 percent average. Agricultural productivity, at 5.5 percent a year, is projected to continue to grow at almost

twice the rate of the nonfarm economy. Within the nonfarm sector, the

manufacturing industries as a whole are projected to achieve a somewhat

higher rate of productivity growth than the nonfarm average of 2.9 percent a year.

Some of the nondurable manufacturing industries, particularly the

highly automated processing industries--chemicals, paints, petroleum

refining, etc. --are projected to maintain their higher than average increases in productivity. Food processing, tobacco, and the drug, cleaning, and toilet preparations industries are other nondurable manufacturing industries projected to increase faster than the average. Industries

with lower than average gains include the paperboard containers and boxes

and the leather, footwear, and leather products industries. Productivity

gains in remaining nondurable industries are projected at about the 3.2

percent average of the private sector.

In the durable manufacturing sector, above average increases in productivity are concentrated for the most part in selected machinery industries. These include office computing and accounting machines; service

industry machines; electric transmission and distribution equipment;

household appliances; radio, television and communications equipment;

and miscellaneous electrical machinery and equipment. Motor vehicles

and instruments are also projected at above average rates. Lower than

average increases are projected for furniture; stamping and screw machine

products; other fabricated metal products; farm machinery; metalworking

machinery; general industry machinery and equipment; machine shop products; electric wiring and lighting equipment; and aircraft and other

transportation equipment. Productivity in the remaining durable manufacturing industries are projected at about the average rates for the

private sector.

In the nonmanufacturing group, higher than average increases in productivity are expected to continue in mining, transportation, public util

ities, and communication. On the other hand, there are lower than average increases in trade, services, construction, and finance and real

estate. It should be pointed out that there are difficult conceptual and

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statistical problems involved in measuring the output of many of the

industries in this latter group. The available measures for these indus

tries may understate output and, therefore, understate productivity

changes.

Output per man-hour for the economy as a whole and for each industry was assumed to be the same for all the models in the first approximation for deriving employment. Theoretically, this could prove inconsistent, since the changing importance of industries with different

levels of productivity could affect the weighted averages for the total

economy and require changes in the aggregate GNP. Actually, the overall

impact of industry shift among the models was less than 0.1 percent a

year. The aggregate was not changed, nor was total employment. The

effect of industry shift, such as it was, is then implicitly reflected

in slight variations in industry productivity among the various models.

Annual Hours Per Worker

To translate output per man-hour projections into output per worker

requires projections of annual hours per worker. To be consistent with

establishment employment as explained in chapter II, hours are defined

as payroll hours per worker, including paid leave, holidays,43/ etc.

Part-time employment, either by dual jobholders or part-time workers,

lowers the level of average hours. An increase in the number of parttime employees results in a decline in average hours, even if the hours

of full-time employees have not changed. The labor force projections

imply substantial increases in workers (youths and women) who may be

seeking part-time work.

Trends in average hours were projected for major industry groups

and then applied to each industry within the group. The projections

were made after consideration of long-term trends in average hours and

changes within subperiods.

For manufacturing, stability in average hours is projected to occur

after some reduction from the high levels of overtime in the 1963-65

period. Annual hours in the nonmanufacturing sector are expected to con

tinue to decline. Hours in the trade and service industries are project

ed to decline faster than the average for nonmanufacturing. Lower hours

in trade and services are a result of increases in part-time employment

and continuation, at a reduced rate, of the secular decline in average

hours of full-time employees.

43/ For a discussion of the concepts of hours paid and hours worked

and their impact on the measurement of output per man-hour see, Trends

in Output per Man-Hour in the Private Economy, 1909-1958 (BLS Bulletin

1249, 1960).

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Average hours in construction are expected to decline at a longterm rate which is below that for the nonfarm private sector. Hours in

the other nonmanufacturing industries--mining, utilities, finance, insur

ance,and transportation--are expected to decline only slightly, as the

long-term secular reduction in hours in these areas is moderated.

Assumptions about the trend in average hours are the same in all of

the models. Differences in the average hours due to industry weighting

are negligible.

The Interindustry Employment Table

The 1970 interindustry employment table combines the projections of

input-output coefficients with those of productivity (adjusted for chang

es in hours of work). These form a comprehensive and consistent set of

estimates of total employment in 1970 attributable to a billion dollars

of delivery to final demand by each industry in the economy. The billion dollars of sales to final demand is at producers' value, 1958

prices. Employment includes proprietors and unpaid family workers, as

well as wage and salary workers. Total employment covers primary employ

ment in the industry producing the particular product or service, and

indirect employment covering employment in each of the supporting industries. These estimates refer to jobs rather than number of persons, because the employment estimates are based primarily on payroll reports

from establishments.

Primary employment covers employment initially required in the industry producing the product or service. Thus, it includes the production of parts within the industry as well as the production of the final

product. For example, workers employed in both the pig iron stage and

the finishing stages of the steelmaking process are counted as primary

employment in the steel industry. Primary employment is defined to include also some small additional employment in the initial industry, due

to the "feedback" effect. For example, the additional employment in the

steel industry required to produce steel for repair parts for trucks

which transport materials used in the steelmaking process are considered

part of primary employment.

The detailed interindustry employment table is included in the

appendix to this bulletin. (See table A-3.) However a summary version

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of the table (table V-2) is provided below.44/ For the summary table,

the detailed industry estimates of indirect employment have been aggregated into nine major sectors. Also, the manufacturing employment estimates have been further distributed into durable and nondurable industry

subgroups. As a measure of the extent to which the employment impact

ramifies beyond the initial employment, the table shows the ratio of indirect to primary employment generated by a billion dollars of delivery

to final demand.45/

An example from the summary table will illustrate the way the interindustry employment implications are traced for a billion dollars of delivery to final demand. In industry 22, household furniture, 115,930

jobs would be generated in 1970 by a billion dollars of delivery of the

products of this industry to final demand. Of this total, there would

be 66,470 jobs in the industry itself and an additional 49,460 jobs in

the industries supplying the raw materials, parts, trade and transportation, and miscellaneous services, required to produce the end product.

As the table shows, most of the indirect employment would be in manufacturing (lumber and wood products, fabrics, and rubber and plastics products), with employment of 27,988. There are 2,871 employed in agriculture and forestry, and additional numbers employed in the transportation,

trade, and service industries. Thus, for every 100 jobs in the household furniture industry, there would be about 74 additional jobs in the

various supporting industries.

44/ The consolidated 1970 interindustry employment table differs in

several respects from a similar table for the year 1962, published in the

Monthly Labor Review, July 1965, pp. 841-850. The earlier table was

based on the original 1958 input-output coefficients, and no attempt was

made to project them to a later date. However, the unit labor requirements estimates were brought forward to 1962. The delivery to final

demand was stated in 1962 prices.

The 1970 table is based on projections to 1970 of both the inputoutput coefficient and unit labor requirements. Also, in order to be

consistent with the price level used in the basic input-output table and

the constant dollar estimates of final demand, the billion dollars of

final demand expenditures for the output of each industry are in 1958

prices.

45/ The 1970 interindustry employment table excludes all producing

industries which, in the input-output system, do not purchase products

or services from other industries and would not, therefore, generate indirect employment requirements. Industries excluded are industry 80,

gross imports of goods and services; industry 83, scrap, used and secondhand goods; industry 84, government industry (covers general government

employment and excludes purchases); industry 85, rest of the world; and

industry 86, household industry (domestics).

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1 02

Analysis of the table reveals a wide range in the total employment

attributable to the sales from the various industries. The figures

range from about 31,000 jobs per billion dollars of sales by industry 71,

real estate and rentals, to about 182,000 jobs per billion dollars of

sales by industry 72, personal and repair services, excluding auto repair.

This is better than a 5 to 1 range.

Variations in employment per billion dollars of output reflect not

only differences in productivity, but also the particular definitions of

output and employment used in this study. Productivity differences may

result from the nature of the industry; capital intensive sectors, such

as petroleum refining and chemicals, generate less employment per dollar

than the service industries. Industries closer to the natural resource

level, such as mining, will generate less indirect employment than those

in the finished manufactured goods stage.

In the input-output system, imports and excise taxes are included

in total output, which is part of the employment-output ratio. An industry which has relatively high proportions of either imports or excise

taxes will, therefore, show lower employment per dollar of output. Another kind of definitional distinction involves the trade sector. Trade

output is defined as the margin between sales and cost of goods sold.

Employment per dollar of output in this industry is, therefore, much

higher than it would be if measured against total sales of wholesale and

retail trade.

At this point, it also bears repeating that employment in this study

refers to full and part-time workers, including the self-employed. Differences in employment coefficients may be due to variations in the proportion of part-time employees. These might be equalized if employment

was translated into hours.

The average employment per billion dollars of final demand in the

total private economy, excluding domestics, is about 100,000 jobs.

About 60 percent of the 100,000 would be in the industries producing,

transporting, and distributing the final goods and services. The other

40 percent would be in the supporting industries.

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103

Table V-l. Index of Coefficient Change, 1958-70—^

(1958-100)

Industry number and title

Index of

coefficient

change

1958-70

Average

annual

rate of

change

1958-70

Intermediate

output as

percent

of total

output

1970 2/

1 Livestock and livestock products.................. 96.0 93.8

2 Other agricultural products............ . 95.0 -0.4 79.7

3 Forestry and fishery products.................. 97.0 -0.2 88.9

4 Agricultural,forestry,and fishery services.......... 101.0 0.1 100.0

5 Iron and ferroalloy ores mining................. . 114.0 1.1 95.3

6 Nonferrous metal ores mining........................ 88.0 -1.1 89.6

7 Coal mining......................................... 82.0 -1.7 80.5

8 Crude ppf-rn1 eum and natural gas..................... 93.0 —0 • 6 99.6

9 Stone and clay mining and quarrying............. . 102.0 0.2 97.6

10 Chemical and fertilizer mineral mining... ........ 85.0 -1.4 86.8

11 New construction 3/...............................

12 Maintenance and repair construction..... . 80.0 -1.9 65.9

13 Ordnance and a c c e s s o r i e s ... ........... . 45.1 -6.5 8.7

14 Food and kindred products........... ........... . 101.0 0.1 28.2

15 Tobacco manufactures............................ 95.0 -0.4 21.1

16 Broad and narrow fabrics,yam apd thread mills...... 99.0 -0.1 91.6

17 Miscellaneous textile goods and floor coverings....

18 Apparel.............................................

106.0

98.0

0.5

-0.2

66.3

20.6

19 Miscellaneous fabricated textile products........... 101.0 0.1 48.0

20 Lumbar and wood products,except containers.......... 103.0 0.3 95.3

21 Wooden containers...................... ...... . 69.0 -3.0 92.9

22 Household furniture........................... 87.0 -1.2 15.9

23 Other furniture and fixtures........................ 100.0 23.4

24 Paper and allied products,except containers......... 101.0 0ol 88.1

25 Paperboard containers and boxes... . 104.0 0.3 97.7

26 Printing and publishing............................. 89.0 -1.0 77.1

27 Chemicals and selected chemical products... . 109.0 0.7 87.0

28 Plastics and synthetic materials.................... 130.0 2.2 92.8

29 Drugs,cleaning,and toilet preparations........ 123.0 1.7 33.5

30 Paints and allied products................... . 93.0 —0 • 6 97.1

31 Petroleum refining and related industries........... 98.0 -0.2 50.7

32 Rubber and miscellaneous plastics products.......... 130.0 2.2 78.1

33 Leather tanning and industrial leather products.....

34 Footwear and other leather products

88.0

100.0

-1.1 94.5

16.1

35 Glass and glass products............................ 99.0 -0.1 91.8

36 Stone and clay products........... ..... . 105.0 0.4 95.9

37 Primary iron and steel manufacturing................ 94.0 -0.5 97.6

38 Primary nonferrous metals manufacturing............. 106.0 0.5 96.2

39 Metal containers.o............................... 96.0 —0 • 3 97.6

40 Heating,plumbing,and structural metal products.... 101.0 0.1 86.8

41 Stampings,screw machine products,and bolts.......... 85.0 -1.4 91.4

42 Other fabricated metal products.............. . 100.0 85.0

43 Engines and turbines....... ...... .............. 88.0 -1.1 49.9

44 Farm machinery and equipment........................ 97.0 -0.3 28.2

45 Construction,mining,and oil field machinery....... 102.0 0.2 30.3

See footnotes at end of table.

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Table V-l. Index of Coefficient Change,

(1958-100)

1958-70—^--Continued

Industry number and title

Index of

coefficient

change

1958-70

Average

annual

rate of

change

1958-70

Intermediate

output as

percent

of total

output

1970 2/

46 Materials handling machinery and equipment...... 110.0 0.8 48.5

47 Metalworking machinery and equipment.... ..... ..... 97.0 -0.2 50.2

48 Special industry machinery and equipment.... . 91.0 -0.8 24.1

49 General industrial machinery and equipment........ 113.0 1.0 63.7

50 Machine shop products........................... 112.0 0.9 94.8

51 Office,computing,and accounting machines...... . 100.0 m m m m 27.7

52 Service industry machines.•••••..............••••• 119.0 1.5 37.0

53 Electric industrial equipment and apparatus........• 100.0 .... 58.1

54 Household appliances.......... .................. 126.0 1.8 22.6

55 Electric lighting and wiring equipment........ . 106.0 0.5 80.5

56 Radio,television,and communication equipment..... 166.0 4.3 33.4

57 Electronic components and accessories..... •••••••• 117.0 1.3 79.3

58 Miscellaneous electrical machinery and equipment...• 105.0 0.4 66.6

59 Motor vehicles and equipment......... .......... . 103.0 0.2 38.0

60 Aircraft and parts•••••....•••••.......... ...... 66.0 -3.5 20.6

61 Other transportation equipment................. . 100.0 m m m m 22.9

62 Scientific and controlling instruments.......... 125.0 1.9 51.5

63 Optical,ophthalmic,and photographic equipment••...•• 100.0 . . . . 37.8

64 Miscellaneous manufacturing...................... 100.0 mm mm mm mm 38.9

65 Transportation and warehousing................... 101.0 0.1 61.9

66 Communications; except broadcasting............... 117.0 1.3 50.0

67 Radio and television broadcasting.••••••.......... 100.0 98.8

68 Electrie,gas,water,and sanitary services.... •••••• 125.0 1.9 60.6

69 Wholesale and retail trade................. . 93.0 -0.6 27.6

70 Finance and insurance................... ........ 100.0 . . . . 54.1

71 Real estate and rental....... .................. 100.0 .... 31.2

72 Hotels;personal and repair services,except auto.... 95.0 -0.4 20.4

73 Business services..... ...... ..... ......... 119.0 1.5 88.8

74 Research and development........................ 110.0 0.8 49.5

75 Automobile repair and services................... 120.0 1.5 46.5

76 Amusements............ ............... ........ 90.0 -0.9 37.2

77 Medical,educational and nonprofit organizations....• 100.0 . . . . 5.4

78 Federal Government enterprises.... ................. 84.0 -1.5 78.0

79 State and local government enterprises.••••••••••••• 98.0 -0.2 89.0

80 Gross imports of goods and services.............. . . . . . . . . M«BMM

81 Business travel, enter ta’tnrnent , and g i£ts-----r------- 100.0 100.0

82 Office supplies......... ................................................................................................. 105.0 0.4 82.0

83 Scrap,used and secondhand goods.....................

mm m mm mm

84 Government industry.................................

m m m m m m m m

85 Rest of the world industry..........................

86 Household industry...........................................................................................................................................................................

— — —

1/ The index of coefficient change is

the weighted average change in the use of

this industry's output by intermediate

users*

2J This column shows the proportion of

each industry's total output which goes

to intermediate users. The remaining portion of total output would go to final

demand.

3/ New construction has no coefficients inasmuch as none of its output is

sold intermediate.

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105

Table V-2. Total Employmenty (Primary and Indirect) 2/ Per Billion Dollars of Delivery to Final Demand,

(Producers' value, 1958 prices)

1970

Employment

Livestock

and

livestock

products

Other

agricultural

products

Forestry

and

fishery

products

Agricultural ,

forestry,

and

fishery

services

Iron and

ferroalloy

ores

mining

Nonferrous

metal

ores

mining

Coal

mining

Crude

petroleum and

natural

8aa

Stone

and clay

mining

and

quarrying

1 2 3 4 5 6 7 8 9

Total..... 125,514 115,155 95,069 180,047 39,973 53,574 63,772 25,316 70,737

Primary.. 68,724 79,835 57,475 122,144 13,218 29,064 42,120 6,381 44,726

Indirect. 56,790 35,320 37,594 57,903 26,755 24,510 21,652 18,935 26,011

Distribution of indirect

Industry group |

(1-4) Agricultural, forestry,

and fishery services.... 31,187 11,259 16,162 42,078 / 531 393 411 726 370

(5-10) Mining..................... 271 524 172 247 1,311 662 228 94 421

(12) Construction.............. 1,269 1,467 549 852 996 750 565 1,195 665

(13-64) Manufacturing............. 8,439 7,288 6,291 5,225 8,264 9,138 9,548 4,248 11,988

(13,20-23,35-64) Durable.............. 2,103 2,689 2,122 1,761 6,144 6,763 7,223 2,492 8,946

(14-19,24-34) Nondurable........... 6,336 4,599 4,169 3,464 2,120 2,375 2,325 1,756 3,042

(65) Transportation............ 2,539 1,723 1,528 1,442 6,737 2,898 1,286 1,998 1,981

(66-68) Communications and public

utilities............... 693 809 667 611 991 1,470 1,047 604 1,248

(69) Trade...................... 5,397 4,431 2,383 2,582 2,574 3,165 3,672 1,754 3,716

(70-71) Finance, insurance,and

real estate............. 2,100 2,524 2,558 1,629 1,923 2,274 1,784 3,225 1,842

(72-79) Services and miseellaneous.................. . 4,897 5,290 7,289 3,241 3,428 3,763 3,112 5,092 3,781

Ratio of indirect to primary........... .83 .44 .65 .47 2.02 .84 .51 2.97 .58

Broad Mi scelCheadcal Mainte- and laneous

and fer- New nance and Ordnance Food and Tobacco narrow textile

tilizer construe- repair and ac- kindred menu- fabrics, goods Apparel

mineral tion construe- cessories products factures yarn and

mining tion and floor

thread covermills ings

10 11 12 13 14 15 16 17 18

Total..... 44,713 102,694 91,527 85,894 91,686 50,424 91,928 66,761 124,795

Primary.. 21,582 46,719 62,716 41,861 24,571 10,896 47,044 22,405 77,606

Indirect. 23,131 55,975 28,811 44,033 67,115 39,528 44,884 44,356 47,189

Distribution of indirect

Industry group

(1-4) Agricultural, forestry,

and fishery services.... 381 1,753 613 626 37,623 18,464 11,362 4,350 4,989

(5-10) Mining..................... 1,097 1,383 842 499 316 207 478 338 245

(12) Construction.............. 677 655 — 525 1,084 504 786 616 569

(13-64) Manufacturing............. 7,210 28,020 14,208 29,150 8,713 7,164 14,420 22,184 25,909

(13,20-23,35-64) Durable.............. 4,554 23,545 10,916 24,803 4,195 1,846 2,942 2,755 2,914

(14-19,24-34) Nondurable........... 2,656 4,475 3,292 4,347 4,518 5,318 11,478 19,429 22,995

(65) Transportation............ 4,741 3,829 2,060 2,229 4,116 1,643 3,542 3,433 2,281

(66-68) Communications and public

utilities............... 1,293 1,094 523 829 900 626 1,040 845 801

(69) Trade...................... 2,865 8,618 6,614 4,151 5,738 2,590 5,532 5,799 5,274

(70-71) Finance, insurance and

real estate............. 1,288 2,060 1,028 1,482 1,986 1,127 2,020 2,130 1,868

(72-79) Services and miscellaneous....... 3,574 8,569 2,916 4,539 6,638 7,203 5,703 4,666 5,248

Ratio of indirect to primary........... 1.07 1.20 .46 1.05 2.73 3.63 .95 1.98 .61

See footnotes at end of table.

239-877 0-66-8

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106

Table V-2. Total Employmentv (Primary and Indirect)2/

Per Billion Dollars of Delivery to Final Demand,

(Producers' value, 1958 prices)

1970--Continued

Employment

Miscellaneous

fabricated

textile

products

Lumber

and

wood

products,

except

containers

Wooden

containers

Household

furniture

Other

furniture

and

fixtures

Paper

and

allied

products,

except

containers

Paperboard

containers

and

boxes

Printing and

publishing

Chemicals

and

selected

chemical

products

19 20 21 22 23 24 25 26 27

Total..................................... 111,700

47,556

64,144

109,904

69,231

40,673

141,367

77,571

63,796

115,930

66,470

49,460

96,918

52,854

44,064

70,487

32,727

37,760

81,044

36,293

44,751

100,229

65,189

35,040

56,076

23,067

33,009

Distribution of Indirect

Industry group

(1-4) Agricultural, forestry,

and fishery services....

(5-10) Mining.....................

(12) Construction............. .

(13-64) Manufacturing..............

(13,20-23,35-64) Durable...............

(14-19,24-34) Nondurable............

(65) Transportation.............

(66-68) Communications and public

utilities................

(69) Trade.......................

(70-71) Finance, insurance,and

real estate...........

(72-79) Services and miscellaneous.....................

Ratio of indirect to primary............

5,811

333

680

38,786

4,184

34,602

3,009

946

6,894

1,990

5,696

1.35

12,705

280

774

8,384

3,655

4,729

4,712

848

5,330

1,895

5,746

.59

5,576

333

721

37,564

34,144

3,420

4,590

932

6,193

1,896

5,989

.82

2,871

408

626

27,988

16,866

11,122

3,125

1,002

6,093

1,670

5,679

.74

1,331

551

581

25,633

19,449

6,184

2,795

938

5,826

1,555

4,852

.83

1,825

777

916

17,094

9,165

7,929

3,938

1,366

4,865

1,613

5,369

1.15

1,085

457

892

25,658

5,718

19,940

4,008

1,010

5,170

1,730

4,740

1.23

1,032

287

905

13,887

3,870

10,017

2,755

1,450

3,629

2,193

8,902

.54

1,435

1,830

747

11,145

5,243

5,902

4,043

1,407

4,022

2,121

6,256

1.43

Plastics

and

synthetic

materials

Drugs,

cleaning,

and

toilet

preparations

Paints

and

allied

products

Petroleum

refining and

related

industries

Rubber

and

miscellaneous

plastics

products

Leather

tanning

and

industrial

leather

products

Footwear

and

other

leather

products

Class

and

glass

products

Stone

and

clay

products

28 29 30 31 32 33 34 35 36

Total.... 59,923 65,188 62,223 33,988 69,458 55,934 138,690 78,085 74,804

Primary. 21,753 17,378 19,012 6,117 33,523 36,602 101,157 46,934 42,488

Indirect 38,170 47,810 43,211 27,871 35,935 19,332 37,533 31,151 32,316

Distribution of indirect

Industry group

(1-4) Agricultural, forestry,

and fishery services..... 966 1,687 1,479 596 1,032 536 1,016 726 634

(5-10) Mining.................... . 981 599 828 3,594 535 381 222 976 3,939

(12) Construction............... 935 583 722 1,056 627 323 411 596 735

(13-64) Manufacturing.............. 18,686 18,054 21,480 6,331 18,734 7,367 21,417 13,945 9,875

(13,20-23,35-64) Durabl................. 3,795 5,791 5,632 3,221 4,976 2,104 3,636 6,053 4,055

(14-19,24-34) Nondurable............ 14,881 12,263 15,848 3,110 13,758 5,263 17,781 7,892 5,820

(65) Transportation.......... . 3,796 2,762 4,000 4,125 2,943 2,154 2,072 2,739 4,550

(66-68) Cosmunications and public

utilities................ 1,152 1,449 1,101 1,001 960 607 752 1,340 1,438

(69) Trade................... 3,628 3,911 5,157 2,254 4,306 3,060 3,843 4,068 3,791

(70-71) Finance, insurance and

real estate.............. 1,903 1,996 2,080 2,686 1,621 1,319 1,631 1,667 1,902

(72-79) Services and oiscellaneous..................... 6,120 16,872 6,362 6,229 5,179 3,584 6,173 5,093 5,453

Ratio of indirect to primary.......... 1.75 2.75 2.27 4.56 1.07 .53 .37 .66 .76

See footnotes at end of table.

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107

Table V-2. Total Employmenty (Primary and Indirect) 2/ Per Billion Dollars of Delivery to Final Demand, 1970— Continued

(Producers' value, 1958 prices)

Employment

Primary

iron

and

steel

manufacturing

Primary

nonferrous

metals

manufacturing

Metal

containers

Heating,

plumbing, and

structural

metal

products

Stampings ,,

screw

machine

products

and

bolts

Other

fabricated

metal

products

Engines

and

turbines

Farm

machinery and

equipment

Construction,mining and

oil field

machinery

37 38 39 40 41 42 43 44 45

71,106 60,857

29,929

70,626 83,215 99,165 82,791 70,776 83,100 78,668

38j202 24^371 38^503 58*1158 40^980 29^625

41,151

39 j096

44,004

37^030

32 j 904 3 0 9 2 8 4 6 i255 44^712 40^977 41*811 41,638

Distribution of indirect

U - 4 )

Industry group

Agricultural, forestry,

434

2,842

441 424 513 562 619 461 708 494

(5-10)

(12)

(13-64)

{13.20-23.3

3,551 1,326 1,153 1,058 1,063 724 705 783

1'186 606 752 689 670 636 504 572 567

10^540 11,217 27,309 26,274 23,749 24,062 25,705 26,115 24,964

7,488 7*627 22,554 23 j156 19^628 20*117 22,578 21^819 21*807

{14-19.24-34 ^ * Nondurable............ 3*052 3*590 4^755 3^118 4*121 3*945 3'127 4*296 3 * 157

(65)

(66-68)

5^022

1,654

2*903 3^839 3^158 3^003 2^893 2,406 2*615 2 *,693

Communications and public

1,326 1,118 1,134 1,082 1,081 844 950 981

(69)

(70-71)

Trade....................... 4^500 4*647 5*088 4^885 4 i 315

1,787

4^674 4,004

1,480

4,736 4,619

Finance, insurance,and

1,814 1,799 1,727 1,824 1,667 1,694 1,629

(72-79) Services and miscellan4,908 4,437 4,677 5,086 4,739 5,114 5,027 5,904 4,905

.86 1.03 1.90 1.16 .70 1.02 1.39 1.13 1.12

Materials

handling

machinery and

equipment

Metalworking

machinery and

equipment

Special

industry

machinery and

equipment

General

industrial

machinery and

equipment

Machineshop

products

Office,

computing,

and

accounting

machines

Service

industry

machines

Electric

industrial

equipment

and

apparatus

Household

appliances

46 47 48 49 50 51 52 53 54

87,580 86,150 85,671 82,134 117,138 65,795 71,304 77,424 76,978

Primary................................ 37*954

49,626

52*005

34,145

44^328

41,343

41^866

40,268

85^503

31,635

35*504

30,291

21,438

49,866

41,532

35,892

23,797

53,181

Distribution of indirect

Industry group

(1-4) Agricultural, forestry,

and fishery services....

(5-10) Mining......................

(12) Construction...............

(13-64) Manufacturing..............

(13,20-23,35-64) Durable...............

(14-19,24-34) Nondurable............

(65) Transportation.............

(66-68) Communications and public

utilities.........

(69) Trade................. .

(70-71) Finance, insurance and

real estate..............

(72-79) Services and miscellaneoua................••••••

Ratio of indirect to primary..........

625

682

595

31,298

27,055

4,243

2,667

986

5,501

1,844

5,427

1.31

493

587

621

19,667

17,173

2,494

1,977

1,026

3,842

1,642

4,291

.66

640

679

580

24,574

21,092

3,482

2,383

1,157

4,812

1,645

4,872

.93

553

807

597

23,062

20,126

2,936

2,515

1,160

5,231

1,552

4,789

.96

<44

797

724

16,(47

14,334

2,313

2,059

1,030

3,913

1,691

4,331

.37

628

270

414

14,816

11,168

3,648

1,852

736

4,836

1,224

5,512

.85

677

737

665

30,156

25,349

4,807

2,799

1,011

6,334

1,934

5,554

2.33

647

673

533

20,517

16,739

3,778

2,414

846

4,175

1,317

4,770

.86

657

691

606

29,125

21,767

7,358

2,769

1,305

5,339

1,524

11,167

2.23

See footnotes at end of table.

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106

Table V-2. Total Employment1/ (Primary and Indirect) 2/

Per Billion Dollars of Delivery to Final Demand,

(Producers' value, 1958 prices)

1970— Continued

Employment

Electric

lighting and

wiring

equipment

Radiotelevision,and

communication

equipment

Electronic

components

and

accessories

Miscellaneous

electrical

machinery and

equipment

Motor

vehicles

and

equipment

Aircraft

and

parts

Other

transportation

equipment

Scientific

and

controlling

instruments

Optical,

ophthalmic, and

photographic

equipment

55 56 57 58 59 60 61 62 63

Total..................................... 85,953 76,908 81,952 81,754 67,003 73,870 91,767 81,410 75,347

Primary................................. 46,230 32,168 46,812 37,118 19,653 45,264 45,892 41,891 41,918

Indirect.......... ..................... 39,723 44,740 35,140 44,636 47,350 28,606 45,875 39,519 33,429

Distribution of Indirect

Industry group

(1-4) Agricultural, forestry,

and fishery services....

(5-10) Mining........... .........

(12) Construction...............

(13-64) Manufacturing..............

(13,20-23,35-64) Durable...............

(14-19,24-34) Nondurable............

(65) Transportation.............

(66-68) Conmunicatlons and public

utilities...............

(69) Trade......................

(70-71) Finance, insurance.,and

real estate.............

(72-79) Services and miscellaneous .....................

Ratio of indirect to primary............

Total....

Primary.,

Indirect

Industry group

(1-4) Agricultural, forestry,

and fishery services....

(5-10) Mining.....................

(12) Construction........ .

(13-64) Manufacturing..............

(13,20-23,35-64) Durable...............

(14-19,24-34) Nondurable............

(65) Transportation............

(66-68) Communications and public

utilities...............

(69) Trade......................

(70-71) Finance, insurance and

real estate.............

(72-79) Services and miscellaneous ............ .

Ratio of indirect to primary...........

582

697

516

22,096

16,339

5,757

2,445

719

372

528

27,612

23,003

4,609

2,547

706

504

550

18,430

13,623

4,807

2,225

615

864

525

26,663

19,577

7,086

2,605

595

722

796

27,106

20,565

6,541

3,267

349

432

451

18,284

15,920

2,364

1,593

887

769

597

27,352

23,137

4,215

3,040

1,050

466

477

22,502

17,282

5,220

2,297

565

516

457

15,056

8,488

6,568

2,162

841

6,197

775

4,893

782

5,489

966

4,903

1,063

5,237

731

2,907

965

5,755

815

5,276

885

4,269

1,416 1,322 1,455 1,480 1,626 970 1,565 1,439 1,510

4,932 5,972 4,999 6,009 6,939 2,884 4,944 5,194 8,011

.86 1.39 .75 1.20 2.41 .63 1.00 .94 .80

Miscellaneous

manufacturing

Transportation

and

warehousing

Communications;

except

broadcasting

Radio

and

television

broadcasting

Electric ,

gas,

water,

and

sanitary

services

Wholesale

and

retail

trade

Finance

and

insurance

Real

estate

and

rental

Hotels;

personal

and

repair

services,

except

auto

64 65 66 67 68 69 70 71 72

89,890

46,857

43,033

75,989

52,493

23,496

45,745

33,552

12,193

85,764

38,862

46,902

46,150

16,876

29,274

137,074

116,010

21,064

104,377

82,724

21,653

30,992

8,024

22,968

182,177

152,615

29,562

Distribution of Indirect

1,355 575 218 725 309 1,036 694 2,890 855

517 313 83 96 1,900 162 115 174 250

721 2,953 1,803 1,117 3,875 1,044 1,092 5,166 797

22,305 6,050 4,313 7,144 3,810 5,047 5,211 3,190 12,355

10,323 3,406 2,293 3,989 2,288 2,009 1,178 1,639 6,139

11,982 2,644 2,020 3,155 1,522 3,038 4,033 1,551 6,216

2,650 — 516 1,111 2,096 1,149 1,495 833 1,496

993 910 244 1,956 316 1,273 1,317 530 1,102

6,355 3,140 931 1,948 2,044 — 1,656 2,104 4,285

1,963 2,730 878 2,216 1,351 2,420 864 3,106 2,582

6,174 6,825 3,207 30,588 13,572 8,933 9,206 4,976 5,844

.92 .45 .36 1.21 1.73 .18 .26 2.86 .19

See footnotes at end of table,

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Table V-2. Total Employmenty (Primary and Indirect)u Per Billion Dollars of Delivery to Final Demand, 1970— Continued

(Producers' value, 1958 prices)

Employment

Business

services

Research

and

development

Automobile

repair

and

services

Amusements

Medical,

educational

and

nonprofit

organizations

Federal

Government

enterprises

State

and

local

government

enterprises

Business

travel,

entertainment,

and

gifts

Office

supplies

73 74 75 76 77 78 79 81 82

105,260 102,231 110,382 158,921 170,611 156,233 86,870

63^791 gp'885 70'534 137^245 146^361 126*281 55^646

Indirect. 41^469 21^346 39*848 21*676 24^250 29^952 31^224 96,130 89,967

Distribution of indirect

Industry group

(1-4) Agricultural, forestry,

and fishery services.... 669 721 546 957 1,026 2,822 345 13,544 1,277

(5-10) Mining..................... 221 93 392 101 157 577 1,007 291 470

(12) Construction............... 744 342 1,440 1,993 2,187 1,028 13,085 1,738 868

(13-64) Manufacturing.............. 21,045 7,780 17,869 5,112 7,369 6,346 5,666 17,387 69,097

(13,20-23,35-64) Durable............... 4,530 2,495 12,360 2,337 2,634 1,885 3,368 5,167 14,433

(14-19,24-34) Nondurable............ 16,515 5,285 5,509 2,775 4,735 4,461 2,298 12,220 54,664

(65) Transportation............. 1,634 1,359 1,827 1,096 1,296 10,307 1,668 22,227 3,044

(66-68) Communications and public

utilities................ 4,313 544 1,294 890 1,101 887 2,125 924 1,344

(69) Trade....................... 2,728 2,387 7,510 1,936 2,358 2,413 2,462 7,409 4,393

(70-71) Finance, insurance, and

real estate.............. 2,335 1,485 3,533 3,517 2,235 1,099 1,516 2,329 1,992

(72-79) Services and mlscellanCOllS # e ......... 7,783 6,633 5,437 6,074 6,520 4,475 3,347 30,282 7,482

Ratio of indirect to primary............ .65 .26 .56 .16 .17 .24 .56

JJ The figures in each column shorn total employment

directly and Indirectly attributable to $1 billion of delivery to final demand by the industry named at the top.

Employment shown does not include any multiplier effects from

respending of income generated.

2/ Primary employment is employment required in the

industry producing the product or service. This includes not

only the employment initially required by this industry but

any indirect employment effect from its supporting industries

requirements. Indirect employment covers employment in each

of the supporting industries. Employment covers wage and

salary employees, self-employed and unpaid family workers.

Employment is not generated by the following industries

because they do not purchase goods and services from other

industries: Gross imports of goods and services (80); Scrap,

used and second-hand goods (83); Rest of the world (85);

Households (86); and Inventory valuation adjustment (87).

There is no employment in Business travel, entertainment and

gifts (81); and Office supplies (82) which are dumny sectors

and serve in an input-output framework as a central distributing mechanism for items produced by various industries but

with a similar distribution pattern.

NOTE: Because of rounding, sums of individual items

may not equal totals.

This table represents a sumnary of the information

shown in table A-3.

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Chapter VI. Patterns of Employment, 1970

The 1970 projections of industry employment are derived by converting the final demand projections into total employment requirements

through the use of the 1970 interindustry employment table. The derived

industry employment estimates are initially on an input-output industry

basis. They are then adjusted to be consistent with the classification

system underlying the industry estimates of employment regularly compiled

and published by the BLS.

One of the significant adjustments required to convert the employment estimates from the input-output classification to the standard

industrial classification involves the construction industry. In the

input-output system, the construction industry includes force account

construction activity.46/ To derive contract construction employment

consistent with BLS employment classification requires transfer of estimated force account construction employees to the industries performing

the construction, i.e., transportation, oil well drilling, utilities,

communications, and government.

The other transfers which affect employment to any significant

extent involve the trade and service sectors. In the input-output system, these industries are defined on an activity basis so that all services performed in the trade sector are transferred to the appropriate

services industry and vice versa. For example, automobile repair services performed by retail automobile dealers are classified in services

rather than trade. This procedure is reversed to obtain employment in

these sectors consistent with the BLS classification system. In this

sense, consistency refers to industry classification and not to types of

workers covered.

The regularly published industry employment estimates of the BLS

are limited to nonagricultural wage and salary employees, excluding

domestics. In order to cover the total work force, the BLS industry

estimates of wage and salary employment for 1957 and other selected

years have, therefore, been expanded to include self-employed, unpaid

family workers, domestics, and agricultural workers. These estimates

are included in the study to provide some historical perspective on the

projected change in the industrial composition of the total work force.

The detailed industry employment projections and estimates for

selected years are summarized by major sectors in tables VI-1 to 4. Full

46/ Force account construction is work done by government and business firms using their own employees; that is, not contracted out.

110

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detail is provided in tables VI-5 to 7.47/ In another set of tables,

the projections have been adjusted to exclude the self-employed and unpaid

family workers in nonagricultural industries in order to provide estimates

which are directly comparable with those regularly published by BLS. These

are shown, along with data for earlier years, in appendix tables A-4 and A-5.

The Changing Composition of Employment

To return to the questions raised at the very beginning of the

study:

1. How might the industrial distribution of employment

in 1970 differ from the distribution in 1965?

2. Do the projected patterns of employment reflect

a continuation of past trends or modifications

of these trends?

3. More specifically, what are the implications for

the continuation of the long-term shift from goods

producing to services industries?

4. To what extent are the results affected by different

assumptions regarding continuation of the sharp increases in recent years for consumer and investment

durable goods?

The observations which follow will try to provide some answers, based

on the employment projections for major sectors of the economy. Additional

detail is provided for some of the larger industries and industry groups.

47/ The total civilian employment shown in these tables differs from

that included in table II-l because of differences in the treatment of

government employment. Government employment in table II-l is based on

national income measures of civilian government employment. This is done

in order to assure consistency with the national income measure of government output, used in deriving total GNP. As part of the conversion of the

employment projections from the input-output classification system to that

used in the BLS establishment series, the government employment estimates

have been adjusted to conform to a level consistent with BLS estimates.

Government employment shown in the tables includes the Armed Forces.

Government employment in the summary tables includes employees of

government enterprises as well as general government workers. In the

detailed industry tables, employment in government enterprises is shown

separately.

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Employment changes since 1957. In order to put the projections into

some historical perspective, it may be useful to review some of the major

changes in the composition of employment since 1957 when the unemployment

rate was relatively low— 4.3 percent of the civilian labor force. The

years that followed, however, saw a sharp slackening in the rate of economic growth and a rise in the rate of unemployment. Between 1957 and

1960, the growth rate was only 2.5 percent a year compared with almost

4 percent during the previous decade. Unemployment increased and by 1960

was at 5.6 percent. In the recession of 1961, it jumped to 6.7 percent.

In the recovery years of 1962 and 1963, employment increased rapidly but

not enough to reduce the unemployment rate below 5.6 percent.

Over the 6-year period, 1957-63, total employment (as measured in

tables VI-1 to 7) increased by only 0.7 percent a year compared with an

average annual rate of increase of 1.2 percent over the 1947-57 decade.

In addition, much of the increase from 1957 to 1963 was concentrated in

two sectors: State and local government and personal, business, and professional services. Trade, domestic service, Federal Government, and

finance, insurance, and real estate also showed above average increases.

In contrast, employment in the other sectors either declined substantially or showed little or no increase in employment opportunities.

The agricultural work force declined by over 1.2 million during the

6-year period> almost 4 percent a year. Employment in mining, transportation, and communications and public utilities all showed substantial

reductions. The largest sector, manufacturing, still had not regained

the 1957 level of employment by 1963. Most of the reduction was in the

durable goods industries. Contract construction employment was only

slightly higher in 1963 than in 1957.

It was during this period that concern began to develop regarding

the impact of technological change on the structure of employment opportunities. It was felt that acceleration of technological change had so

altered the industrial and occupational requirements for manpower that

there existed the very real prospect that expansion of the economy would

not provide jobs for those "structurally" unemployed, particularly "bluecollar" workers with limited skills.

Economic developments since then have served to put into perspective

the problems of the structurally unemployed, including those groups requiring special training and assistance to meet the changing manpower requirements of an expanding economy.

Between 1963 and 1965, due in part to the cut in personal and corporate taxes under the Revenue Act of 1964, real growth in the economy

exceeded 5 percent a year. Expansion in aggregate demand, supported by

active manpower training and education programs, resulted in an increase

in employment of almost 3.5 million in 2 years, or 2.4 percent per year-­

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more than twice the long-term rate. Most of the increase in employment

occurred in 1965, with the unemployment rate dropping to 4.6 percent for

the year as a whole and to below 4 percent by the year's end.

State and local government, trade, and personal, business, educational, and medical services continued as major sources of increased

employment. In the goods producing area, employment in agriculture continued its long-term decline, but mining stabilized at about the 1963

level. However, employment in construction and manufacturing, particularly in durable manufacturing, increased dramatically, reversing the

previous trend. With both consumer and investment expenditures for durable goods increasing at twice the rate of real output for the economy,

manufacturing employment expanded sufficiently to reach an alltime high

and exceed the previous peak levels of World War II and the Korean conflict. Most of the gain was in durable manufacturing. This, along with

the growth in construction, provided expanded employment opportunities

for "blue-collar" workers, including those with limited skills. The

general acceleration in employment also provided the basis for some improvements in the job situation for youths and nonwhites--groups that had

been particularly affected by the sluggish growth in the past.

Employment increased sharply, particularly in manufacturing, during

the latter part of 1965 and continuing into 1966. This was due to the

expansion in demand resulting from Viet Nam defense expenditures, the

continuing investment boom for plant and equipment, and strong consumer

demand for durables.

However, the growth in demand for consumer durables and capital

goods could not continue indefinitely at the unusually high rates experienced during the past few years. In addition, the Viet Nam conflict is

projected to be resolved over the next few years, permitting a cutback in

military expenditures.

What are the implications for the industrial distribution of employment of a return to more sustainable patterns of final demand and lower

levels of defense expenditures? Within the general framework of the study,

the employment projections provide some answers to this and related questions raised at the beginning of the chapter. The analysis which follows

is based, in part, on computations of average annual rates of change in

employment between 1965 and 1970. The conversion of the employment projections into average annual rates carries no implication regarding the

timing of these changes. In fact, for some industries affected by the

current expansion in expenditures for defense and for consumer and producer durable goods, employment may increase more during the early part

of the 5-year period and less, or even be reduced, during the latter part

of the decade.

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Employment Projections--1970

As indicated in chapter II, total employment requirements over the

next 5 years are projected to increase on the average about 1.9 percent

a year under the 4-percent unemployment assumption and about 2.2 percent

under the 3-percent unemployment assumption. Both the 1.9- and 2.2-percent rates of employment increase are substantially higher than that for

most of the postwar period. The higher rates of increase are attributable

primarily to the accelerated growth in the labor force. Adding to the increase in employment is the assumed reduction in the unemployment rate,

from the 4.6 percent average in 1965 to 4 or 3 percent by 1970. The projected increases amount to 1.5-1.7 million jobs a year. Achievement of

such increases represents a major challenge, but these increases were

actually exceeded in the employment gains recorded in 1965.

Within the overall employment increases projected to 1970, the projections for individual industries show highly divergent trends for any

one model, as well as variations among the alternative models. The alternative models refer to the basic 4-percent unemployment model, but the

differences between the basic 4-percent model and either of the alternatives generally can be applied to the basic 3-percent unemployment model.

The largest annual rate of employment increase, about 5 percent, is

projected for State and local government. Growth in this sector is attributable to the continued expansion in schools, medical care, and other public

services for a growing population. Federal grants would provide additional

stimulus. In contrast, Federal Government civilian employment is projected

to increase only moderately from the 1965 level.

By 1970, State and local government employment would amount to about

10 million workers. This is about 12 percent of the total work force,

compared with somewhat more than 10 percent in 1965. The ratio of State

and local government to Federal Government employment would increase from

about 3 to 1 to almost 4 to 1. Total government employment would account

for about 15 percent of total employment compared with 13.5 percent in 1965.

The projection of employment in personal, business, private educational, and medical services in the basic models shows the next largest

increase--almost 4 percent a year. This reflects the continued shift in

demand for such services and the lower than average increases in productivity (as commonly measured) in the individual industries providing these

services.

The rate of increase for these services would be lower in the high

durable alternative, but it is still substantially higher than the overall average increase. By 1970, this major group of services would increase

to 15.7-16.9 percent of total employment, compared with about 15 percent

in 1965. For all except the high durables alternative, this represents an

acceleration in the past rate of growth in employment.

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Employment in finance, insurance, and real estate in the basic models

is projected to increase at a faster rate than the average. It would account for 4.7 percent of the total by 1970— somewhat larger than that in

1965. Under the high durable alternative, its share would remain about

the same as in 1965.

Communications and public utilities are characterized by rapid increases in productivity. Thus, although services provided by these industries are expected to increase sharply, employment would remain at about

the 1965 levels and decline as a proportion of total employment— from about

2 percent in 1965 to 1.8 percent in 1970.

Employment in the trade sector is dependent to a considerable extent

on activity in the goods producing areas. The projections of employment

in trade vary, depending on the relative importance of goods production

in the various models. Productivity gains in trade are lower than the

average for the total private economy. As a consequence, the employment

increases (1.6-2.1 percent a year) are above the rate for the private

economy and about the average for total employment in the basic model;

somewhat higher in the high durables alternative and lower in the high

services model. As a result, trade is projected to remain about the same

proportion of total employment, 20 percent, as in 1965. Trade accounts

for such a large number of workers, over 15.1 million in 1965 compared

with 18.4 in manufacturing, that the employment increase is one of the

largest among the various sectors— an additional 1.3-1.7 million by 1970.

Total transportation employment has been declining during much of

the postwar period, primarily due to the reduction in railroad employment.

Employment has increased within the past few years, largely in trucking

and air transportation. Although productivity gains in transportation are

above average, projected demand is sufficient to provide the basis for

continued further small gains in employment. The increase would not be

enough to arrest the continuing decline in the sector's share of total

employment— from 4.3 percent in 1957, to 3.7 percent in 1965, to 3.4

percent in 1970. Because transportation involves both personal transportation and transportation of goods, changes in this sector are not affected as much as those in trade, which is primarily dependent on distribution

of goods. Thus, the projections of transportation employment are approximately the same for all models.

Within the goods producing sectors, agricultural employment is projected to continue its long-term decline, both in absolute numbers and

as a percentage of the total work force. The decline is due primarily

to very high rates of increase in agricultural productivity (about 5.5

percent a year), with only moderate increases in the demand for farm

products. In line with the long-term shift in the composition of the

agricultural work force, most of the decline is projected to be among

the self-employed and family workers; the number of wage and salary

employees would remain relatively stable.

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By 1970, the agricultural work force would account for only 5 percent

of total employment, compared with about 9 percent in 1957 and 6 percent

in 1965. This is one of the lowest ratios of any nation in the world, and

it reflects the major technological revolution that has taken place and is

projected to continue in this sector of the economy. Part of the reduction in farm employment is accompanied, of course, by increases elsewhere

in the economy--in the industries producing farm machinery and tractors,

fertilizer, feed, petroleum products, trucks and autos, etc. Nevertheless

the shift from farm to nonfarm jobs presents major problems of transition,

which may be made more difficult by developments in the manufacturing

sector, to be discussed shortly.

Mining employment, until recently, had been decreasing for many years

This is attributable in large part to substantially better than average

gains in productivity and relative declines in the demand for coal--one of

the larger mining industries. Employment in mining is projected to contin

ue to decline, although at a reduced pace. By 1970, total mining employment is projected to decline to about three-quarters of 1 percent of total

employment, compared with somewhat less than 1 percent in 1965. The reduc

tions would occur chiefly in coal mining and crude petroleum production.

Contract construction employment is projected to show the largest

percentage increase of any major goods producing industry. This is due

to projected increases in construction activity to meet rising State and

local government needs, increased housing requirements, and expanding

business investment in plant. However, as noted in chapter IV on final

demand, the major impetus arises from the expansion in construction expenditures by State and local government, with more moderate increases

accounted for by the other two categories. In addition, productivity

gains in construction (as conventionally measured) are lower than the

average for the economy. The combined effect of these two factors is

a continuation of the very substantial rates of increase in construction

employment by 1970. Construction's share of total employment would be

increased from 5.4 percent of the total in 1965 to about 5.6 percent or

more by 1970. The increase is reduced in the high services model and is

a little higher than the average for the economy as a whole.

What are the prospects for increased employment in manufacturing

industries? Here the projections differ considerably, depending on the

variations among the alternatives. This is particularly true in the

durable goods industries. Nondurable industries, in the aggregate, are

projected to increase by about 0.7-1.0 percent a year, considerably below the average for the economy as a whole or for the total private

economy. This is, however, a significant improvement over the small

gains experienced during most of the postwar period, but there is some

decline from the recent very high rates of increase.

The modest increase in employment in nondurable goods represents

largely offsetting changes within the group as a whole. Employment in

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food processing, tobacco, textiles, and petroleum is projected to decline.

Employment is projected to increase in apparel, paper and paper products,

paperboard and boxes, printing and publishing, chemicals, plastics and

synthetics, drugs and toilet preparations, and rubber and miscellaneous

products.

The explanation for the divergent projections of employment among

the industries varies from industry to industry. The decline in employment projected for food processing, the largest single industry in the

group, reflects moderate increases in demand with better than average

increases in productivity. Demand for plastics and synthetic materials

is projected to increase very rapidly, but this is largely offset by

better than average increases in productivity. Average increases in the

demand for petroleum products are more than offset by higher than average

increases in productivity, resulting in a decline in employment

requirements.

As would be expected, the estimates of employment in the durable

goods area are much more affected by the various alternatives than the

nondurable goods projections. In the basic models, the projected rates

of employment increase for durable goods industries are approximately

the same as those for nondurable manufacturing. Both are considerably

below the average for the economy as a whole or for the private sector.

Here, too, the overall increase in employment reflects substantial

increases for a number of industries, offset in part by reductions or

very little change for a number of basic industries. Included among the

latter are ordnance, lumber, steel, communications equipment (defense

part), motor vehicles, and aircraft (defense part). Increases are fairly

general for all the machinery industries (particularly computers), fabricated metal products, furniture and fixtures, stone, clay and glass products, nonferrous metals, the nondefense part of communications equipment

(e.g., color television), electrical transmission and distribution equipment, household appliances, electronic components, civilian aircraft,

railroad and other transportation equipment, instruments, and optical and

photographic equipment.

In the aggregate, the basic 4-percent unemployment model indicates

modest increase in employment for durable goods industries of about 0.7

percent a year between 1965 and 1970. However, the high durable alternative, with its assumption of higher than average increases in demand

for consumer and producer durables, indicates a rate of increase twice

as high--1.5 percent a year. This is lower than the very unusual increases from 1963-65. It is about the same as the projected rate of

increase in employment for the total private economy.

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The high service model, on the other hand, would lower the potential

increase in durable goods manufacturing employment to only 0.4 percent

a year. In absolute numbers, the difference in 1970 between the high

durable and high service models is substantial; the former indicating

an increase of 826,000 from 1965 to 1970, the latter an increase of only

194,000. The differences affect almost all the durable manufacturing industries, except those which are heavily dependent on defense expenditures.

For manufacturing as a whole, covering both nondurable and durable

goods industries, the range of projections of manufacturing employment

in the alternative models indicate that there is some prospect for increased growth in factory jobs of about 0,5 percent a year between 1965

and 1970, even under the lowest estimate. The high durable set of projections implies an increase of about 1.2 percent a year. (The 3-percent

unemployment model, roughly adjusted to reflect a high durable goods

alternative, would show an even higher rate of increase--about 1.5 percent

a year.)

The projected increase in manufacturing employment represents a

reversal of the 1957-63 experience when manufacturing employment showed

no increase over the period. It should be noted, however, that the projected rate of increase in employment in manufacturing, even at the upper

end of the range of estimates, would still be substantially lower than

that for the economy as a whole. The projections also represent a slowdown from the more recent gains in manufacturing employment in 1965 and

early 1966. The basic models imply even smaller increases in manufacturing employment between 1965 and 1970. Under all the alternatives,

manufacturing would continue to decline as a proportion of total employment from 25.9 percent of the total in 1957, to 24.8 percent in 1965, and

to 23.1-23.9 percent by 1970.

A major qualification needs to be made regarding these projections.

Expansion of defense expenditures, if the Viet Nam buildup continues,

will involve increased employment in defense oriented manufacturing industries and their supplying industries. The projections developed by

BLS assume that by 1970, the Viet Nam conflict will have been resolved

and defense expenditures would be reduced to a more normal level. During the period of the buildup, manufacturing employment may exceed the

projected employment in a number of industries.

The military buildup since the early part of 1965, coupled with a

continuation of the capital goods boom and consumer demand for durables,

has resulted in greater than average increases in manufacturing employment, particularly in the durable goods industries. By mid-1966, manufacturing employment had almost reached the levels projected for 1970

under the high durable goods alternative.

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A resolution of the Viet Nam situation and a return to more sustainable rates of increase in the demand for durable goods would imply substantial reductions in employment in some industries, particularly defense

oriented industries--ordnance, aircraft, communication equipment and electronic components, shipbuilding, etc. This still leaves room for growth

in employment for a number of industries under the high durables alternative--furniture, paper, printing and publishing, chemicals, computers, and

selected metal fabricating and machinery industries. However, the projections indicate little increase or even reductions from mid-1966 levels for

two of the basic industries--automobiles and steel.

The structure of employment which emerges from these projections is

a continuation of the long-term shift towards the service industries.

The shift is at a somewhat reduced rate, however, compared with the period

1957-63 when manufacturing employment showed no growth for a period of 6

years.

Goods producing industries declined from about 42 percent of total

employment in 1957 to 37 percent in 1965. The projections indicate a

further decline by 1970 for all the alternative models. By 1970, the *

share would be down to 34 or 35 percent of the total.

Goods related industries, i.e., trade and transportation, have been

about 24 percent of total employment and are projected to remain at about

the same proportion.

Service industries, including utilities and government, increased

from 34 percent of the total in 1957 to 39 percent in 1965. They are

projected to increase to 41 or 42 percent of the total by 1970.

The differential impact on employment of changes in final demand,

input-output coefficients and productivity, varies from industry to industry; the shift towards services seems to be largely due to the lower

rate of productivity gains among the major service sectors relative to

goods producing industries, and partly to changes in the structure of

final demand. Even in the high durables alternative, service industries

are projected to increase their share of total employment.

The shift to services is also reinforced by the direction of the

interindustry coefficient changes. The effect of coefficient changes

on several service industries (e.g., electric, gas, water, communications,

business services, and auto repair) is to increase employment. The

changes are largely offsetting among the goods producing industries.

However, the effect of coefficient changes on the major goods related

industry, trade, is to reduce employment.

The full implications of these results for manpower policy, training programs, and occupational outlook will be explored as part of the

further review of the projections and evaluation of the results. This

will involve conversion of the employment projections into occupational

requirements.

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Table VI-1. Civilian Employment,— by Major Industry Group,

Selected Years and Projected 1970

(In thousands)

Major industry group

Selected years Projected 1970

1957 1963 1965

3 percent

unemployment

4 percent unemployment

Basic

model

High

durables

High

services Basic

model

Total— ^........................................................ 68,006 70,727 74,190 82,823 81,613 81,613 81,613

Agriculture................ ................................. 6,222 4,946 4,585 4,080 4,080 4,080 4,080

Mining....................................................... 863 671 662 624 618 622 616

Construction................................................. 3,691 3,728 3,987 4,620 4,576 4,701 4,423

Manufacturing................................................ 17,586 17,396 18,383 19,282 19,075 19,519 18,856

Durable.................................................... 10,099 9,856 10,626 11,134 11,022 11,452 10,820

Nondurable........................................... . 7,487 7,540 7,757 8,148 8,053 8,067 8,036

Transportation....................... ............. ......... 2,888 2,654 2,721 2,799 2,770 2,781 2,760

Communications and public utilities........................ 1,555 1,451 1,519 1,523 1,504 1,478 1,514

Trade.............................................. ......... 13,466 14,296 15,114 16,718 16,535 16,779 16,374

Finance, insurance, and real estate..... .......... ....... 2,803 3,201 3,371 3,896 3,838 3,665 3,846

Services and miscellaneous.................................. 8,873 10,503 11,198 13,598 13,405 12,802 13,783

Government................................................. 7,616 9,225 10,046 12,683 12,262 12,236 12,411

Federal..................................... ............... 2,217 2,358 2,379 2,524 2,510 2,497 2,508

State and local........................................... 5,399 6,868 7,667 10,159 9,752 9,739 9,903

Private households.......................................... 2,444 2,656 2,604 3,000 2,950 2,950 2,950

Addendum:

68,006 70,727 74,190 82,823 81,613 81.613 81.613

Government................................................... 7,616 9,225 10,046 12,683 12,262 12,236 12,411

Private...................................................... 60,391 61,502 64,144 70,140 69,351 69,377 69,202

Goods producing industries............................... 28,362 26,741 27,617 28,606 28,349 28,922 27,975

Goods related industries 3/.............................. 16,354 16,950 17,835 19,517 19,305 19,560 19,134

Service industries................. ...................... 15,675 17,811 18,692 22,017 21,697 20,895 22,093

Percent distribution

100.0 100.0 100.0 100.0 100.0 100.0 100.0

Agriculture.................................................. 9.15 6.99 6.18 4.93 5.00 5.00 5.00

Mining....................................................... 1.27 .95 .89 .75 .76 .76 .75

Construction................................................. 5.43 5.27 5.37 5.58 5.61 5.76 5.42

Manu fac tur ing................................................ 25.86 24.60 24.78 23.28 23.37 23.92 23.10

Durable......................................... ....... . 14.85 13.94 14.32 13.44 13.51 14.03 13.26

Nondurable................. ........... ................. 11.01 10.66 10.46 9.84 9.87 9.88 9.85

Transportation............................................... 4.25 3.75 3.67 3.38 3.39 3.41 3.38

Communications and public utilities........................ 2.29 2.05 2.05 1.84 1.84 1.81 1.86

Trade........................................................ 19.80 20.21 20.37 20.19 20.26 20.56 20.06

Finance, insurance, and real estate....................... 4.12 4.53 4.54 4.70 4.70 4.49 4.71

Services and miscellaneous................................ 13.05 14.85 15.09 16.42 16.43 15.69 16.89

Government........................ ....... ................... 11.20 13.04 13.54 15.31 15.02 14.99 15.21

Federal..... ...... ..................... .................. 3.26 3.33 3.21 3.05 3.08 3.06 3.08

State and local........................................... 7.94 9.71 10.33 12.27 11.95 11.93 12.13

Private households.......................................... 3.59 3.76 3.51 3.62 3.61 3.61 3.61

Addendum:

100.0 100.0 100.0 100.0 100.0 100.0 100.0

Government............................................. ...... 11.20 13.04 13.54 15.31 15.02 14.99 15.21

Private................................................... 88.80 86.96 86.46 84.69 84.98 85.01 84.79

Goods producing industries............................... 41.71 37.81 37.22 34.54 34.74 35.44 34.28

Goods related industries 3/.............................. 24.05 23.97 24.04 23.56 23.65 23.97 23.44

Service industries........................................ 23.05 25.18 25.19 26.58 26.59 25.60 27.07

1/ Covers wage and salary employees, self-employed, and NOTE: Because of rounding, sums of Individual items

unpaid family workers. may not equal 100.

2J See footnote 3, table II-l.

3/ Trade and transportation; part of the latter is for

transportation of persons.

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Table VI-2. Change in Civilian Employment,^ by Major Industry Group,

Selected Periods and Projected 1965-70

Major industry group

Selected periods Projected 1965-70

1957-65 1957-63 1963-65

3 percent

unemployment

4 percent unemployment

Basic

model

High

durables

High

Basic services

model

Aggregate change

Total.......................................... 6.184 2.721 3.463 8.633 7,423 7,423 7.423

Agriculture................................. -1,637 -1,276 -361 -505 -505 -505 -505

Mining............. ......................... -201 -192 -9 -38 -44 -40 -46

Construction................................ 296 37 259 633 589 714 436

Manu f ac turing............................... 797 -190 987 899 692 1,136 473

Durable.................................... 527 -243 770 508 396 826 194

Nondurable................................ 270 53 217 391 296 310 279

Transportation.............................. -167 -234 67 78 49 60 39

Communications and public utilities........ -36 -104 68 4 -15 -41 -5

Trade........................................ 1,648 830 818 1,604 1,421 1,665 1,260

Finance, insurance, and real estate....... 568 398 170 525 467 294 475

Services and miscellaneous................. 2,325 1,630 695 2,400 2,207 1,604 2,585

Government.................................. 2,430 1,609 821 2,637 2,216 2,190 2,365

Federal.................................... 162 141 21 145 131 118 129

State and local........................... 2,268 1,469 799 2,492 2,085 2,072 2,236

Private households........ ................. 160 212 -52 396 346 346 346

Addendum:

Total............... .......................... 6.184 2.721 3,463 8.633 7.423 7.423 7.423

Government.................................. 2,430 1,609 ----- 2,637 2,216 2,190 2,365

Private....................... .............. 3,753 1,111 2,642 5,996 5,207 5,233 5,058

Goods producing industries............... -745 -1,621 876 989 732 1,305 358

Goods related industries 2/.............. 1,481 596 885 1,682 1,470 1,725 1,299

Service industries........................ 3,017 2,136 881 3,325 3,005 2,203 3,401

3/ Average annual rate of change—

Total........................ .................. 1.1 0.7 2.4 2.2 1.9 1.9 1.9

Agriculture................................. -3.8 -3.8 -3.8 -2.3 -2.3 -2.3 -2.3

Mining....................................... -3.3 -4.1 -0.6 -1.2 -1.4 -1.2 -1.4

Construction............................... . 1.0 0.2 3.4 3.0 2.8 3.3 2.1

Manufacturing............. .................. 0.6 -0.2 2.8 1.0 0.7 1.2 0.5

Durable.................................... 0.6 -0.4 3.9 0.9 0.7 1.5 0.4

Nondurable................................ 0.4 0.1 1.4 1.0 0.7 0.8 0.7

Transportation.... ......................... -0.8 -1.4 1.2 0.6 0.4 0.4 0.3

Communications and public utilities........ -0.3 -1.2 2.3 0.1 -0.2 -0.6 -0.1

Trade................ ....................... 1.5 1.0 2.8 2.0 1.8 2.1 1.6

Finance, insurance, and real estate....... 2.3 2.2 2.6 2.9 2.6 1.7 2.7

Services and miscellaneous................. 3.0 2.9 3.3 4.0 3.7 2.7 4.2

Government................................... 3.5 3.2 4.4 4.8 4.1 4.0 4.3

Federal................. .................. 0.9 1.0 0.5 1.2 1.1 1.0 1.1

State and local.... ...................... 4.5 4.1 5.6 5.8 4.9 4.9 5.3

Private households.......................... 0.8 1.4 -1.0 2.9 2.5 2.5 2.5

Addendum:

Total.......................................... 1.1 0.7 2.4 2.2 1.9 1.9 1.9

Government................................... 3.5 3.2 4.4 4.8 4.1 4.0 4.3

Private...................................... 0.8 0.3 2.1 1.8 1.6 1.6 1.5

Goods producing industries............... -0.3 -1.0 1.6 0.7 0.5 0.9 0.3

Goods related industries 2/.............. 1.1 0.6 2.6 1.8 1.6 1.9 1.4

Service industries........................ 2.2 2.1 2.4 3.3 3.0 2.3 3.4

1J Covers wage and salary employees, self-employed, and NOTE: Because of rounding, sums of individual items may

unpaid family workers. not equal totals.

2/ Trade and transportation; part of the latter is for

transportation of persons.

3/ Compound interest rates based on terminal years.

239-877 0-66— 9

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Table VI-3. Civilian Employment,— by ISP Industry,

Selected Years and Projected 1970

(In thousands)

Industry number and title

Selected years Projected 1970

1958 1962 1963 1964 1965

3 percent

unemployment

4 percent unemployment

Basic

model

High

durables

High

services

Basic

model

Total— ^...................................................... 66.336 70.127 70.727 72.194 74,190 82.823 81,613 81.613 81,613

1,2 Agriculture......................................... 5,844 5,190 4,946 4,761 4,585 4,080 4,080 4,080 4,080

3 Forestry and fishery products...................... 110 109 110 114 115 119 118 119 116

4 Agricultural.forestry,and fishery services........ 211 212 219 224 228 242 241 241 241

3 Iron and ferroalloy ores mining................... 38 28 28 28 30 30 30 31 29

6 Nonferrous metal ores mining....................... 57 56 54 53 55 52 52 53 51

7 Coal mining......................................... 224 161 157 156 150 133 131 131 131

8 Crude petroleum and natural gas..... ............. 350 319 310 309 302 262 260 260 261

9,10 Nonmetallic mining and quarrying.................. 120 123 122 122 125 147 145 147 144

11,12 Construction........................................ 3,521 3,689 3,728 3,831 3,987 4,620 4,576 4,701 4,423

13 Ordnance and accessories........................... 145 269 266 247 236 235 235 236 234

14 Food and kindred products.......................... 1,816 1,803 1,793 1,783 1,778 1,735 1,725 1,705 1,714

IS Tobacco manufactures............................... 95 90 89 89 84 81 80 79 80

16 Broad and narrow fabrics,yarn and thread mills.... 609 579 569 571 579 565 558 561 558

17 Miscellaneous textile goods and floor coverings... 105 105 105 107 111 101 99 104 99

18 Apparel.............................................. 1,284 1,363 1,372 1,389 1,445 1,540 1,520 1,572 1,520

19 Miscellaneous fabricated textile products......... 127 147 151 155 162 179 176 178 177

20,21 Lumber and wood products........................... 711 685 683 693 699 668 661 676 646

22 Household furniture................................ 273 290 294 308 326 375 371 400 369

23 Other furniture and fixtures....................... 107 118 118 122 127 159 157 166 152

24 Paper and allied products,except containers....... 400 429 430 432 436 497 491 494 490

25 Paperboard containers and boxes................... 165 187 190 194 202 229 226 229 226

26 Printing and publishing............................ 948 1,004 1,010 1,024 1,053 1,228 1,213 1,217 1,215

27 Chemicals and selected chemical products.......... 403 417 411 411 422 428 424 427 422

28 Plastics and synthetic materials.................. 143 165 175 183 199 224 221 226 219

29 Drugs,cleaning,and toilet preparations............ 190 208 221 223 221 239 235 233 238

30 Paints and allied products................. ....... 61 63 63 64 65 65 64 65 59

31 Petroleum refining and related industries......... 224 195 189 183 178 167 164 164 165

32 Rubber and miscellaneous plastics products........ 346 411 420 436 466 505 499 514 496

33 Leather tanning and industrial leather products... 41 36 34 35 35 33 32 33 32

34 Footwear and other leather products............... 320 329 318 316 321 332 326 326 326

35 Glass and glass products....................... 144 160 162 164 169 182 179 184 179

36 Stone and clay products............................ 434 450 456 464 468 492 488 498 477

37 Primary iron and steel manufacturing.............. 847 841 845 899 935 940 931 966 910

38 Primary nonferrous metals manufacturing........... 308 327 330 334 363 389 386 399 379

39 Metal containers.................................... 70 70 72 73 73 76 75 75 75

40 Heating,plumbing,and structural metal products.... 429 416 425 446 467 521 518 533 504

41 Stampings,screw machine products,and bolts........ 253 282 287 292 317 352 349 364 343

42 Other fabricated metal products................... 343 379 385 398 425 476 471 487 464

43 Engines and turbines............................... 90 84 85 87 90 90 89 93 88

44 Farm machinery and equipment....................... 116 115 123 129 138 149 147 154 141

45 Construction,mining,and oil field machinery....... 145 149 152 163 172 203 201 209 194

46 Materials handling machinery and equipment........ 61 62 66 72 77 80 79 83 78

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Table VI-3. Civilian Employment,—^ by ISP Industry--Continued

Selected Years and Projected 1970

(In thousands)

Industry number and title

Selected years Projected 1970

1958 1962 1963 1964 1965

3 percent

unemployment

4 percent unemployment

Basic

model

High

durables

High

services

Basic

model

47 Metalworking machinery and equipment.............. 246 274 283 296 314 352 349 363 339

48 Special industry machinery and equipment.......... 164 174 175 184 193 220 217 228 209

49 General industrial machinery and equipment........ 210 235 240 249 264 283 280 292 271

50 Machine-shop products.............................. 156 189 191 193 205 233 231 238 230

51 Office,computing,and accounting machines.......... 133 159 163 175 197 238 234 263 230

52 Service industry machines.......................... 90 101 102 106 111 110 109 115 105

53 Electric industrial equipment and apparatus...... 304 350 339 341 366 395 392 410 378

54 Household appliances............................... 148 150 156 161 167 182 179 192 179

55 Electric lighting and wiring equipment............ 124 147 153 159 170 194 191 198 188

56 Radio,television,and communication equipment..... 400 555 549 532 568 530 523 548 516

57 Electronic components and accessories............. 179 266 262 265 304 325 322 333 318

58 Miscellaneous electrical machinery and equipment.. 97 103 99 94 101 113 112 117 112

59 Motor vehicles and equipment..... .......... . 604 693 742 757 852 789 778 826 763

60 Aircraft and parts................................. 785 635 640 605 618 551 551 547 546

61 Other transportation equipment.................... 218 219 231 248 274 324 320 336 311

62 Scientific and controlling instruments............ 223 249 253 254 262 281 278

CM00

m

275

63 Optical.ophthalmic,and photographic equipment.... 103 112 115 119 127 140 138 142 138

64 Miscellaneous manufacturing.................... . 395 418 414 424 451 487 481 496 479

65 Transportation and warehousing.................... 2,703 2,661 2,654 2,672 2,721 2,799 2,770 2,781 2,760

66 Communications;except broadcasting................ 775 732 727 747 775 742 732 718 735

67 Radio and television broadcasting................. 89 97 101 105 110 123 121 121 121

68 Electric,gas.water,and sanitary services.......... 622 624 623 626 634 658 651 639 658

69 Wholesale and retail trade............... ......... 13,589 14,262 14,296 14,677 15,114 16,718 16,535 16,779 16,374

70 Finance and insurance........................... 2,137 2,410 2,471 2,544 2,608 3,031 2,994 2,864 2,999

71 Real estate and rental............................. 676 707 730 748 763 865 844 801 847

72 Hotels{personal and repair services.except auto... 2,503 2,683 2,714 2,804 2,866 3,161 3,102 2,953 3,111

73 74 Business services and research and development.... 1,526 2,008 2,064 2,139 2,201 2,781 2,752 2,753 2,746

75 Automobile repair and services...... ............. 399 480 452 466 476 535 527 507 527

76 Amusements........... .................... .......... 635 689 698 733 753 889 879 830 883

77 Medical.educational and nonprofit organizations... 3,486 4,046 4,246 4,409 4,559 5,871 5,786 5,399 6,159

78 Government enterprises - Federal....... .......... See NOTE.

79 Government enterprises - State and local.......... See N0TE.

84 Government, total............................... . 7,839 8,890 9,225 9,565 10,046 12,683 12,262 12,236 12,411

Federal........................................... 2,191 2,340 2,358 2,348 2,379 2,524 2,510 2,497 2,510

State and local................................... 5,648 6,550 6,868 7,248 7,667 10,159 9,752 9,739 9,901

86 Private households................................. 2,550 2,694 2,656 2,683 2,604 3,000 2,950 2,950 2,950

1/ Covers wage and salary employees, self-employed and unpaid NOTE: ISP»interindustry sales and purchases. ISP 78

family workers. and 79 are included in ISP 84.

2/ See footnote 3, table II-l. Because of rounding, sums of individual items may not

equal totals.

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Table VI-4. Civilian Employment,— by ISP Industry,

Selected Years and Projected 1970

(Percent distribution)

Industry number and title

Selected Years Projected 1970

1958 1962 1963 1964 1965

3 percent

unemployment

4 percent unemployment

Basic

model

High

durables

High

services

Basic

model

Total.. 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

1,2 Agriculture..... ...... ............................. 8.81 7.40 6.99 6.59 6.18 4.93 5.00 5.00 5.00

3 Forestry and fishery products...................... .17 .16 .16 .16 .16 .14 .14 .14 .14

4 Agricultural.forestry and fishery services........ .32 .30 .31 .31 .31 .29 .30 .30 .30

5 Iron and ferroalloy ores mining...... . .06 .04 .04 .04 .04 .04 .04 .04 .04

6 Nonferrous metal ores mining.................. . .09 .08 .08 .07 .07 .06 .06 .06 .06

7 Coal mining................................. ........ .34 .23 .22 .22 .20 .16 .16 .16 .16

8 Crude petroleum and natural gas........... .53 .45 .44 .43 .41 .32 .32 .32 .32

9,10 Nonmetallic mining and quarrying.................. .18 .18 .17 .17 .17 .18 .18 .18 .18

11,12Construction............................... ........ 5.31 5.26 5.27 5.31 5.37 5.58 5.61 5.76 5.42

13 Ordnance and accessories.... ...................... .22 .38 .38 .34 .32 .28 .29 .29 .29

14 Food and kindred products.......................... 2.74 2.57 2.54 2.47 2.40 2.09 2.11 2.09 2.10

15 Tobacco manufactures............. .................. .14 .13 .13 .12 .11 .10 .10 .10 .10

16 Broad and narrow fabrics,yam and thread mills.... .92 .83 .80 .79 .78 .68 .68 .69 .68

17 Miscellaneous textile goods and floor coverings... .16 .15 .15 .15 .15 .12 .12 .13 .12

18 Apparel.... ........................................ 1.94 1.94 1.94 1.92 1.95 1.86 1.86 1.85 1.86

19 Miscellaneous fabricated textile products......... .19 .21 .21 .21 .22 .22 .22 .22 .22

20,21 Lumber and wood products.... ......... .......... . 1.07 .98 .97 .96 .94 .81 .81 .83 .79

22 Household furniture................................ .41 .41 .42 .43 .44 .45 .45 .49 .45

23 Other furniture and fixtures....................... .16 .17 .17 .17 .17 .19 .19 .20 .19

24 Paper and allied products,except containers....... .60 .61 .61 .60 .59 .60 .60 .61 .60

25 Paperboard containers and boxes.................... .25 .27 .27 .27 .27 .28 .28 .28 .28

26 Printing and publishing............................ 1.43 1.43 1.43 1.42 1.42 1.48 1.49 1.49 1.49

27 Chemicals and selected chemical products......... .61 .59 .58 .57 .57 .52 .52 .52 .52

28 Plastics and synthetic materials.................. .22 .24 .25 .25 .27 .27 .27 .28 .27

29 Drugs,cleaning,and toilet preparations............ .29 .30 .31 .31 .30 .29 .29 .29 .29

30 Paints and allied products................ ........ .09 .09 .09 .09 .09 .08 .08 .08 .07

31 Petroleum refining and related industries......... .34 .28 .27 .25 .24 .20 .20 .20 .20

32 Rubber and miscellaneous plastics products........ .52 .59 .59 .60 .63 .61 .61 .63 .61

33 Leather tanning and industrial leather products... .06 .05 .05 .05 .05 .04 .04 .04 .04

34 Footwear and other leather products........... .48 .47 .45 .44 .43 .40 .40 .40 .40

35 Glass and glass products................. ......... .22 .23 .23 .23 .23 .22 .22 .23 .22

36 Stone and clay products................ .......... .65 .64 .64 .64 .63 .59 .60 .61 .58

37 Primary iron and steel manufacturing.... . 1.28 1.20 1.19 1.25 1.26 1.13 1.14 1.18 1.12

38 Primary nonferrous metals manufacturing........... .46 .47 .47 .46 .49 .47 .47 .49 .46

39 Metal containers..... .............................. .11 .10 .10 .10 .10 .09 .09 .09 .09

40 Heating,plumbing,and structural metal products.... .65 .59 .60 .62 .63 .63 .63 .65 .62

41 Stampings,screw machine products,and bolts........ .38 .40 .41 .40 .43 .43 .43 .45 .42

42 Other fabricated metal products................... .52 .54 .54 .55 .57 .57 .58 .60 .57

43 Engines and turbines............................... .14 .12 .12 .12 .12 .11 .11 .11 .11

44 Farm machinery and equipment....................... .17 .16 .17 .18 .19 .18 .18 .19 .17

45 Construction,mining,and oil field machinery....... .22 .21 .21 .23 .23 .25 .25 .26 .24

See footnotes at end of table.

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Table VI-4. Civilian Employment,— by ISP Industry— Continued

Selected Years and Projected 1970

(Percent distribution)

Industry number and title

Selected years Projected 1970

1958 1962 1963 1964 1965

3 percent

unemploymen t

4 percent unemployment

Basic

model

High

durables

High

services

Basic

model

46 Materials handling machinery and equipment........ .09 .09 .09 .10 .10 .10 .10 .10 .10

47 Metalworking machinery and equipment............... .37 .39 .40 .41 .42 .43 .43 .44 .42

48 Special industry machinery and equipment.......... .25 .25 .25 .25 .26 .27 .27 .28 .26

49 General industrial machinery and equipment........ .32 .34 .34 .34 .36 .34 .34 .36 .33

50 Machine-shop products.............................. .24 .27 .27 .27 .28 .28 .28 .29 .28

51 Office,computing,and accounting machines.......... .20 .23 .23 .24 .27 .29 .29 .32 .28

52 Service industry machines................... ...... .14 .14 .14 .15 .15 .13 .13 .14 .13

53 Electric industrial equipment and apparatus...... .46 .50 .48 .47 .49 .48 .48 .50 .46

54 Household appliances............................... .22 .21 .22 .22 .23 .22 .22 .24 .22

55 Electric lighting and wiring equipment............ .19 .21 .22 .22 .23 .23 .23 .24 .23

56 Radio,television,and communication equipment..... .60 .79 .78 .74 .77 .64 .64 .67 .63

57 Electronic components and accessories............. .27 .38 .37 .37 .41 .39 .39 .41 .39

58 Miscellaneous electrical machinery and equipment.. .15 .15 .14 .13 .14 .14 .14 .14 .14

59 Motor vehicles and equipment...................... .91 .99 1.05 1.05 1.15 .95 .95 1.01 .93

60 Aircraft and parts................................. 1.18 .91 .90 .84 .83 .67 .68 .67 .67

61 Other transportation equipment.................... .33 .31 .33 .34 .37 .39 .39 .41 .38

62 Scientific and controlling instruments............ .34 .36 .36 .35 .35 .34 .34 .35 .34

63 Optical,ophthalmic,and photographic equipment.... .16 .16 .16 .16 .17 .17 .17 .17 .17

64 Miscellaneous manufacturing........................ .60 .60 .59 .59 .61 .59 .59 .61 .59

65 Transportation and warehousing..................... 4.07 3.79 3.75 3.70 3.67 3.38 3.39 3.41 3.38

66 Communications;except broadcasting................ 1.17 1.04 1.03 1.03 1.04 .90 .90 .88 .90

67 Radio and television broadcasting................. .13 .14 .14 .15 .15 .15 .15 .15 .15

68 Electric,gas,water,and sanitary services.......... .94 .89 .88 .87 .85 .79 .80 .78 .81

69 Wholesale and retail trade......................... 20.49 20.34 20.21 20.33 20.37 20.19 20.26 20.56 20.06

70 Finance and insurance........... ................... 3.22 3.44 3.49 3.52 3.52 3.66 3.67 3.51 3.67

71 Real estate and rental............. . 1.02 1.01 1.03 1.04 1.03 1.04 1.03 .98 1.04

72 Hotels;personal and repair services.except auto... 3.77 3.83 3.84 3.88 3.86 3.82 3.80 3.62 3.81

73 74 Business services and research and development.... 2.30 2.86 2.92 2.96 2.97 3.36 3.37 3.37 3.36

75 Automobile repair and services..................... .60 .68 .64 .65 .64 .65 .65 .62 .65

76 Amusements.................. ................... . .96 .98 .99 1.02 1.01 1.07 1.08 1.02 1.08

77 Medical,educational and nonprofit organizations... 5.26 5.77 6.00 6.11 6.15 7.09 7.09 6.62 7.55

78 Government enterprises, Federal................... See NOTE.

79 Government enterprises, State and local........... See NOTE.

84 Government, total..... ............................. 11.82 12.68 13.04 13.25 13.54 15.31 15.02 14.99 15.21

Federal........................................... 3.30 3.34 3.33 3.25 3.21 3.05 3.08 3.06 3.08

State and local................................... 8.51 9.34 9.71 10.03 10.33 12.27 11.95 11.93 12.13

86 Private households................................. 3.84 3.84 3.76 3.72 3.51 3.62 3.61 3.61 3.61

1J Covers wage and salary employees, self-employed and unpaid are included in ISP 84.

family workers. Because of rounding, sums of individual items may not

NOTE: ISP“interindustry sales and purchases. ISP 78 and 79 equal 100.

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2/

(Average annual rate of change)—

T a ble VI-5. C i v i l i a n E m p l o y m e n t , — by ISP Industry, P r o j e c t e d 1965-70

Industry number and title

Projected 1965-70

3 percent

unemployment

4 percent unemployment

Basic

model

High

durables

High

services

Basic model

2.2 1.9 1.9 1.9

1,2 Agriculture....... ................................ -2.3 -2.3 -2.3 -2.3

3 Forestry and fishery products..................... 0.7 0.5 0.7 0.2

4 Agricultural,forestry and fishery services....... 1.2 1.1 1.1 1.1

5 Iron and ferroalloy ores mining................... — — 0.7 -0.7

6 Nonferrous metal ores mining...................... -1.1 -1.1 -0.7 -1.5

7 Coal mining........................................ -2.3 -2.7 -2.7 -2.7

8 Crude petroleum and natural gas................... -2.8 -2.9 -2.9 -2.9

9,10 Nonmetallic mining and quarrying.................. 3.3 3.0 3.3 2.9

11,12 Construction...................................... 3.0 2.8 3.3 2.1

13 Ordnance and accessories.......................... -0.1 -0.1 — -0.2

14 Food and kindred products......................... -0.5 -0.6 -0.8 -0.7

15 Tobacco manufactures.............................. -0.7 -1.0 -1.2 -1.0

16 Broad and narrow fabrics,yarn and thread mills.... -0.5 -0.7 -0.6 -0.7

17 Miscellaneous textile goods and floor coverings... -1.9 -2.2 -1.3 -2.2

18 Apparel........ ................................... 1.3 1.0 0.9 1.0

19 Miscellaneous fabricated textile products........ 2.0 1.7 1.9 1.8

20,21 Lumber and wood products.......................... -0.9 -1.1 -0.7 -1.6

22 Household furniture............................... 2.8 2.6 4.2 2.5

23 Other furniture and fixtures...................... 4.6 4.3 5.5 3.7

24 Paper and allied products,except containers...... 2.7 2.4 2.5 2.4

25 Paperboard containers and boxes................... 2.5 2.3 2.5 2.3

26 Printing and publishing........................... 3.1 2.9 2.9 2.9

27 Chemicals and selected chemical products........ . 0.3 0.1 0.2 —

28 Plastics and synthetic materials.................. 2.4 2.1 2.6 1.9

29 Drugs,cleaning,and toilet preparations.......... . 1.6 1.2 1.1 1.5

30 Paints and allied products........................ — -0.3 — -2.0

31 Petroleum refining and related industries.... . -1.3 -1.7 -1.7 -1.5

32 Rubber and miscellaneous plastics products....... 1.6 1.4 2.0 1.2

33 Leather tanning and industrial leather products... -1.2 -1.8 -1.2 -1.8

34 Footwear and other leather products............ . 0.7 0.3 0.3 0.3

35 Glass and glass products.......................... 1.5 1.2 1.7 1.2

36 Stone and clay products....... ................... 1.0 0.8 1.2 0.4

37 Primary iron and steel manufacturing......... . 0.1 -0.1 0.6 -0.6

38 Primary nonferrous metals manufacturing.......... 1.4 1.2 1.9 0.9

39 Metal containers.................................. 0.8 0.5 0.5 0.5

40 Heating,plumbing,and structural metal products.... 2.2 2.1 2.7 1.5

41 Stampings,screw machine products,and bolts....... 2.1 1.9 2.8 1.6

42 Other fabricated metal products................... 2.3 2.1 2.8 1.8

43 • • • -0.2 0.7 -0.4

44 Farm machinery and equipment..................... . 1.6 1.3 2.2 0.4

45 Construction,mining,and oil field machinery...... 3.4 3.2 4.0 2.4

46 Materials handling machinery and equipment....... 0.8 0.5 1.5 0.3

See footnotes at end of table.

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T a ble VI-5.

2/

(Average annual rate of change)—

C i v i l i a n E m p l o y m e n t , — ^ b y ISP Industry, P r o j e c t e d 1 9 6 5 - 7 0 --Continued

Industry number and title

Projected 1965-70

3 percent

unemployment

4 percent unemployment

Basic

model

High

durables

High

services

Basic model

47 Metalworking machinery and equipment............... 2.3 2.1 2.9 1.6

48 Special industry machinery and equipment.... ...... 2.7 2.4 3.4 1.6

49 General industrial machinery and equipment........ 1.4 1.2 2.0 0.5

50 Machine-shop products........................ . 2.6 2.4 3.0 2.3

51 Office,computing,and accounting machines.......... 3.9 3.5 5.9 3.2

52 Service industry machines.......................... -0.2 -0.4 0.7 -1.1

53 Electric industrial equipment and apparatus....... 1.5 1.4 2.3 0.7

54 Household appliances............................... 1.7 1.4 2.8 1.4

55 Electric lighting and wiring equipment............ 2.7 2.4 3.1 2.0

56 Radio,television,and communication equipment...... -1.4 -1.7 -0.7 -1.9

57 Electronic components and accessories............. 1.3 1.2 1.8 0.9

58 Miscellaneous electrical machinery and equipment... 2.3 2.1 3.0 2.1

59 Motor vehicles and equipment..... ................. -1.6 -1.8 -0.6 -2.2

60 Aircraft and parts............. ............ ....... -2.2 -2.2 -2.4 -2.4

61 Other transportation equipment..................... 3.4 3.2 4.2 2.6

62 Scientific and controlling instruments............ 1.4 1.2 1.7 1.0

63 Optical.ophthalmic,and photographic equipment..... 2.0 1.7 2.3 1.7

64 Miscellaneous manufacturing.......... ........... . 1.6 1.3 1.9 1.2

65 Transportation and warehousing..................... 0.6 0.4 0.4 0.3

66 Communications;except broadcasting............... . -0.9 -1.1 -1.6 -1.1

67 Radio and television broadcasting................ . 2.3 1.9 1.9 1.9

68 Electric,gas,water,and sanitary services.......... 0.7 0.5 0.2 0.7

69 Wholesale and retail trade....... ................. 2.0 1.8 2.1 1.6

70 Finance and insurance.......... ................. . 3.0 2.8 1.9 2.8

71 Real estate and rental.......................... . 2.5 2.0 1.0 2.1

72 Hotels;personal and repair services.except auto.... 2.0 1.6 0.6 1.6

73, 74 Business services and research and development.... 4.8 4.6 4.6 4.5

75 Automobile repair and services...... . 2.4 2.1 1.3 2.1

76 Amusements.......... ............... ............ . 3.4 3.1 2.0 3.2

77 Medical,educational and nonprofit organizations.... 5.2 4.9 3.4 6.2

78 Government enterprises - Federal................... 1.4 1.2 0.9 1.2

79 Government enterprises - State and local.......... 3.5 3.2 2.7 3.3

84 Government - general............................... 5.1 4.3 4.3 4.6

86 Private households................... .......... . 2.9 2.5 2.5 2.5

1/ Covers wage and salary employees, self-employed and 2J Compound interest rates based on

unpaid family workers. terminal years.

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BIBLIOGRAPHY OF REPORTS USED IN ECONOMIC GROWTH STUDIES

A. Labor Force Projections

Cooper, Sophia and Johnston, Denis F., "Labor Force Projections for 1970-80"

(Special Labor Force Report No. 26) Monthly Labor Review, February 1965,

pp. 129-140.

B. Projections of Final Demand

1. Federal Government

Colm, Gerhard and Wagner, Peter, Federal Budget Projections, Studies of

Government Finance, The Brookings Institution, Washington, D.C., 1965.

2. State and Local Government

Financing Public Hospitals and Health Services: 1970 Projections,

Council of State Governments, Research Memorandum.

Public Spending for Higher Education, 1970, Council of State Governments,

Research Memorandum 374, February 1965.

Transportation Outlays of States and Cities: 1970 Projections, Council

of State Governments, Research Memorandum 375, May 1965

Financing Public Welfare: 1970 Projections, Council of State Governments,

Research Memorandum 380, July 1965.

Local School Expenditures: 1970 Projections, Council of State Governments,

Research Memorandum 382, November 1965.

Mushkin, Selma J., and Lupo, Gabrielle C., "Project *70: Projecting the

State-Local Sector," The George Washington University, State-Local

Finances Project, Washington, D.C., March 1966.

3. Residential Construction

Atkinson, L. Jay, "Long-Term Influences Affecting the Volume of New

Housing Units," Survey of Current Business, Vol. 43, No. 11, Office of

Business Economics, U.S. Department of Commerce, November 1963, pp. 8-19.

4. Plant and Equipment Investment

Projections of Business Investment Levels to 1970, Jack Faucett

Associates, Inc., Silver Spring, Maryland, August 1965 (unpublished).

128

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Bibliography--Continued

5. Net Exports

Parrish, Evelyn M., "A Pattern of Balances of Payments between World

Regions in 1970," Staff Working Paper in Economics and Statistics,

No. 9, Office of Business Economics, U.S. Department of Commerce,

September 1964.

6. Consumption Expenditures

Friedman, Charles S., "Stocks of Passenger Cars: Postwar Growth and

Distribution," Survey of Current Business, Vol. 43, No. 9, Office of

Business Economics, U.S. Department of Commerce, September 1963,

pp. 17-24.

Houthakker, Hendrik and Taylor, Lester D., Consumer Demand in the

United States, 1929-1970, Vol. 126, Harvard University Press, 1966.

Simon, Nancy W . , "Personal Consumption Expenditures in the 1958

Input-Output Study," Survey of Current Business. Vol. 45, No. 10,

Office of Business Economics, U.S. Department of Commerce,

October 1965, pp. 7-20.

C. Interindustry Relationships

1. Agriculture

"Agriculture 1970: Its Markets and Selected Characteristics of Its

Structure," Economic Research Service, U.S. Department of Agriculture,

June 1963 (unpublished).

2. Bureau of Mines

"Methodology Used to Estimate 1970 Inputs and Outputs of Six Interindustry

Sales and Purchases (ISP) Mining and Two Refining Sectors," Bureau of

Mines, U.S, Department of Interior, January 1964 (unpublished).

(Industries covered were: 5, Iron and steel; 6, Nonferrous metals: mining;

7, Coal mining; 8, Petroleum and related products: mining; 9, Stone and

clay and their products: mining; 10, Chemicals: mining; 31, Petroleum

and related products: manufacturing; and 38, Nonferrous metals:

manufacturing.)

3. Harvard Economic Research Project, Harvard University, Cambridge,

Massachusetts (unpublished)

(a) Projections of 1958 Input-Output Coefficients to 1970

(b) Projections of Input Structure for the Textile Industry,

(ISP 16, 17, 18, 19)

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Bibliography--Continued

(c) Projections of Input Structure for the Paper and Allied Products

Industry, Except Containers (ISP 24); Paperboard (ISP 25)

(d) Projections of Input Structure for the Petroleum Refining

Industry (ISP 31)

(e) Projections of Input Structure for the Glass Industry (ISP 35)

(f) Projections of Input Structure for the Iron and Steel

Manufacturing Industry (ISP 37)

(g) Input Structure for Metal Containers (ISP 39)

(h) Projections of Input Structure for Heating, Plumbing, Fabricated

Structural Metal Products (ISP 40)

(i) Projections of Input Structure for Screw Machine Products and

Other Fabricated Metal Products (ISP 41 and 42)

(j) Projections of Input Structure for Engines and Turbines (ISP 43)

(k) Projections of Input Structure for Farm Machinery and Equipment

(ISP 44)

(l) Projections of Input Structure for Construction and Mining

Machinery and Equipment (ISP 45)

(m) Projections of Input Structure for Household Appliances (ISP 54)

(n) Projections of Input Structure for Motor Vehicles (ISP 59)

(o) Projections of Input Structure for Other Transportation Equipment

(ISP 61)

(p) Input Structure for Transportation and Warehousing (ISP 65)

(q) Projections of Input Structure for Electricity (Part ISP 68)

(r) Projections of Input Structure for the Gas Utility Industry

(Part ISP 68)

(s) Coefficient Projections in the Metalworking Sectors: General

Considerations

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Bibliography--Continued

4. Construction

Frumkin, Norman, "Construction Activity in the 1958 Input-Output

Study," Survey of Current Business, Vol. 45, No* 5, Office of

Business Economics, U.S. Department of Commerce, May 1965, pp. 13-24.

Projections to 1970 of Input Coefficients for Selected Construction

Activities, Jack Faucett Associates, Inc., Silver Spring, Maryland,

July 1964 (unpublished).

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Table A-l. Gross National Product, by Major Components, 1950-65

(Billions of 1958 dollars)

Major components Selected years

1950 1951 1952 1953 1954 1955 1956 1957

Gross national product............................. 355.3 383.4 395.1 412.8 407.0 438.0 446.1 452.5

Personal consumption expenditures............... 230.5 232.8 239.4 250.8 255.7 274.2 281.4 288.2

Gross private domestic investment............... 69.3 70.0 60.5 61.2 59.4 75.4 74.3 68.8

Fixed investment............................... 61.0 59.0 57.2 60.2 61.4 69.0 69.5 67.6

Nonresidential............................... 37.5 39.6 38.3 40.7 39.6 43.9 47.3 47.4

Structures................................. 12.7 14.1 13.7 14.9 15.2 16.2 18.5 18.2

Producers' durable equipment.... ......... 24.8 25.5 24.6 25.8 24.5 27.7 28.8 29.1

Residential structures....................... 23.5 19.5 18.9 19.6 21.7 25.1 22.2 20.2

Change in business inventories................ 8.3 10.9 3.3 0.9 -2.0 6.4 4.8 1.2

Net exports of goods and services............... 2.7 5.3 3.0 1.1 3.0 3.2 5.0 6.2

Exports............. ............................ 16.3 19.3 18.2 17.8 18.8 20.9 24.2 26.2

Imports......................................... 13.6 14.1 15.2 16.7 15.8 17.7 19.1 19.9

Government purchases of goods and services..... 52.8 75.4 92.1 99.8 88.9 85.2 85.3 89.3

Federal......................................... 25.3 47.4 63.8 70.0 56.8 50.7 49.7 51.7

State and local................................ 27.5 27.9 28.4 29.7 32.1 34.4 35.6 37.6

Percent distribution

Gross national product.............. ............... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Personal consumption expenditures............... 64.9 60.7 60.6 60.8 62.8 62.6 63.1 63.7

Gross private domestic investment............... 19.5 18.3 15.3 14.8 14.6 17.2 16.7 15.2

Fixed investment............................... 17.2 15.4 14.5 14.6 15.1 15.8 15.6 14.9

Nonresidential............ ................... 10.6 10.3 9.7 9.9 9.7 10.0 10.6 10.5

Structures...... ............ .......... . 3.6 3.7 3.5 3.6 3.7 3.7 4.1 4.0

Producers' durable equipment.............. 7.0 6.7 6.2 6.3 6.0 6.3 6.5 6.4

Residential structures....................... 6.6 5.1 4.8 4.7 5.3 5.7 5.0 4.5

Change in business inventories................ 2.3 2.8 0.8 0.2 -0.5 1.5 1.1 0.3

Net exports of goods and services............... 0.8 1.4 0.8 0.3 0.7 0.7 1.1 1.4

Exports......... ................................ 4.6 5.0 4.6 4.3 4.6 4.8 5.4 5.8

Imports......................................... 3.8 3.7 3.8 4.0 3.9 4.0 4.3 4.4

Government purchases of goods and services..... 14.8 19.7 23.3 24.2 21.8 19.5 19.1 19.7

Federal......................................... 7.1 12.4 16.2 17.0 14.0 11.6 11.1 11.4

State and local.... ............................ 7.7 7.3 7.2 7.2 7.9 7.9 8.0 8.3

See footnotes at end of table

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Table A-l. Gross National Product, by Major Components, 1950-65--Continued

(Billions of 1958 dollars)

Major components

Selectee years

1958 1959 1960 1961 1962 1963 1964 19651'

Gross national product............................. 447.3 475.9 487.8 497.3 530.0 550.0 577.6 609.0

Personal consumption expenditures............... 290.1 307.3 316.2 322.6 338.6 352.4 372.1 394.1

Gross private domestic investment............... 60.9 73.6 72.4 69.0 79.4 82.3 86.3 96.1

Fixed investment............................... 62.4 68.8 68.9 67.0 73.4 76.6 81.7 88.9

Nonresidential............................... 41.6 44.1 47.1 45.5 49.7 51.9 57.1 65.0

Structures................................. 16.6 16.2 17.4 17.4 17.9 18.0 18.9 21.2

Producers' durable equipment.............. 25.0 27.9 29.6 28.1 31.7 33.8 38.3 43.8

Residential structures....................... 20.8 24.7 21.9 21.6 23.8 24.7 24.6 23.9

Change in business inventories................ -1.5 4.8 3.5 2.0 6.0 5.7 4.6 7.2

Net exports of goods and services............... 2.2 0.3 4.3 5.1 4.5 5.6 8.5 6.0

Exports......................................... 23.1 23.8 27.3 28.0 30.0 32.2 36.5 37.3

Imports............... ......................... 20.9 23.5 23.0 22.9 25.5 26.5 27.9 31.3

Government purchases of goods and services..... 94.2 94.7 94.9 100.5 107.5 109.8 110.7 112.8

Federal.............. ........... ............... 53.6 52.5 51.4 54.6 60.0 59.7 57.8 57.2

State and local................................ 40.6 42.2 43.5 45.9 47.5 50.0 52.8 55.6

Percent distribution

Gross national product.......................... . 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Personal consumption expenditures............... 64.9 64.6 64.8 64.9 63.9 64.1 64.4 64.7

Gross private domestic investment............... 13.6 15.5 14.8 13.9 15.0 15.0 14.9 15.8

Fixed investment............................... 14.0 14.5 14.1 13.5 13.8 13.9 14.1 14.6

Nonresidential............................... 9.3 9.3 9.7 9.1 9.4 9.4 9.9 10.7

Structures.................................. 3.7 3.4 3.6 3.5 3.4 3.3 3.3 3.5

Producers' durable equipment.............. 5.6 5.9 6.1 5.7 6.0 6.1 6.6 7.2

Residential structures....................... 4.7 5.2 4.5 4.3 4.5 4.5 4.3 3.9

Change in business inventories....... ........ -0.3 1.0 0.7 0.4 1.1 1.0 0.8 1.2

Net exports of goods and services........... 0.5 0.1 0.9 1.0 0.8 1.0 1.5 1.0

Exports......................................... 5.2 5.0 5.6 5.6 5.7 5.9 6.3 6.1

Imports...... .................................. 4.7 4.9 4.7 4.6 4.8 4.8 4.8 5.1

Government purchases of goods and services..... 21.1 19.9 19.5 20.2 20.3 20.0 19.2 18.5

Federal............................. ........... 12.0 11.0 10.5 11.0 11.3 10.9 10.0 9.4

State and local................................ 9.1 8.9 8.9 9.2 9.0 9.1 9.1 9.1

1J Preliminary estimate. SOURCE: Historical data on gross national product are from

U.S. Department of Commerce, Office of Business Economics.

NOTE: Because of rounding, sums of individual items may

not equal totals.

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Table A-2. Personal Consumption Expenditures, by Major Type, 1950-65

(Billions of 1958 dollars)

Major type Selected years

1950 1951 1952 1953 1954 1955 1956 1957

Total, personal consumption expenditures.......... 230.5 232.8 239.4 250.8 255.7 274.2 281.4 288.2

Durable goods.................................... 34.7 31.5 30.8 35.3 35.4 43.2 41.0 41.5

Automobiles and parts........................ 15.9 13.3 12.3 16.0 15.7 21.2 17.9 18.8

Furniture and household equipment........... 15.1 14.3 14.4 15.0 15.3 17.1 17.9 17.4

Other......................................... 3.7 3.8 4.0 4.2 4.4 4.8 5.2 5.3

Nondurable goods................................ 114.0 116.5 120.8 124.4 125.5 131.7 136.2 138.7

Food and beverages........................... 63.2 64.5 66.3 68.4 69.4 72.4 74.8 76.2

Clothing and shoes........................... 21.8 21.6 22.7 22.9 22.8 24.0 24.6 24.4

Gasoline and oil............................. 6.5 7.2 7.8 8.5 8.8 9.6 10.1 10.5

Other......................................... 22.5 23.3 24.0 24.6 24.6 25.8 26.8 27.5

Services......................................... 81.8 84.8 87.8 91.1 94.8 99.3 104.1 108.0

Housing....................................... 26.8 28.8 30.7 32.3 33.9 35.7 37.4 39.2

Household operation.......................... 11.7 12.4 12.7 13.2 13.7 15.1 16.1 16.7

Transportation................................ 8.5 8.8 8.7 8.9 8.7 8.9 9.4 9.5

Other......................................... 34.8 34.9 35.8 36.6 38.5 39.7 41.2 42.5

Percent distribution

Total, personal consumption expenditures.......... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Durable goods.................................... 15.1 13.5 12.8 14.1 13.8 15.8 14.6 14.4

Automobiles and parts........................ 6.9 5.7 5.1 6.4 6.1 7.8 6.4 6.5

Furniture and household equipment........... 6.6 6.1 6.0 6.0 6.0 6.2 6.4 6.0

Other......................................... 1.6 1.7 1.7 1.7 1.7 1.8 1.8 1.9

Nondurable goods................................ 49.4 50.0 50.5 49.6 49.1 48.0 48.4 48.1

Food and beverages........................... 27.3 27.6 27.7 27.3 27.2 26.3 26.6 26.4

Clothing and shoes........................... 9.5 9.3 9.5 9.1 8.9 8.8 8.7 8.5

Gasoline and o il............................. 2.8 3.1 3.3 3.4 3.4 3.5 3.6 3.6

Other......................................... 9.8 10.0 10.0 9.8 9.6 9.4 9.5 9.6

Services......................................... 35.5 36.5 36.7 36.3 37.1 36.2 37.0 37.5

Housing....................................... 11.6 12.4 12.8 12.9 13.3 13.0 13.3 13.6

Household operation.......................... 5.1 5.3 5.3 5.3 5.4 5.5 5.7 5.8

Transportation............................... 3.7 3.8 3.6 3.5 3.4 3.2 3.3 3.3

Other......................................... 15.1 15.0 15.0 14.6 15.0 14.5 14.7 14.8

See footnotes at end of table

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Table A-2. Personal Consumption Expenditures, by Major Type, 1950-65— -Continued

(Billions of 1958 dollars)

Major type

Selected years

1958 1959 1960 1961 1962 1963 1964 1 9 6 5 ^

Total, personal consumption expenditures.......... 290.1 307.3 316.2 322.6 338.6 352.4 372.1 394.1

Durable goods.................................... 37.9 43.7 44.9 43.9 49.2 53.2 58.5 65.4

Automobiles and parts........................ 15.4 19.0 20.0 18.4 21.8 24.1 25.6 30.1

Furniture and household equipment........... 17.1 18.8 18.7 19.2 20.5 22.0 24.9 26.5

Other................... ..................... 5.4 5.9 6.2 6.4 6.8 7.1 8.0 8.8

Nondurable goods................................ 140.2 146.9 149.7 153.1 158.4 161.8 169.4 177.0

Food and beverages..... ..................... 76.4 79.7 80.9 82.3 84.1 85.3 88.3 91.7

Clothing and shoes........................... 24.7 26.1 26.6 26.9 28.4 29.0 31.4 32.8

Gasoline and oil............................. 11.0 11.5 11.8 12.0 12.5 13.0 13.7 13.9

Other......................................... 28.2 29.6 30.4 31.9 33.4 34.4 36.1 38.6

Services............. ............................ 112.0 116.8 121.6 125.6 131.1 137.3 144.2 151.6

Housing...... ................................ 41.1 42.9 44.9 46.6 49.1 51.9 55.0 59.2

Household operation.......................... 17.3 18.0 18.8 19.4 20.4 21.2 22.3 23.3

Transportation............................... 9.3 9.7 10.1 9.7 9.9 10.3 10.4 10.6

Other......................................... 44.3 46.1 47.9 49.8 51.7 54.0 56.5 58.4

Percent distribution

Total, personal consumption expenditures.......... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Durable goods.............................. . 13.1 14.2 14.2 13.6 14.5 15.1 15.7 16.6

Automobile and parts......................... 5.3 6.2 6.3 5.7 6.4 6.8 6.9 7.6

Furniture and household equipment........... 5.9 6.1 5.9 6.0 6.1 6.3 6.7 6.7

Other......................... ................ 1.9 1.9 2.0 1.9 2.0 2.0 2.1 2.2

Nondurable goods................................ 48.3 47.8 47.3 47.5 46.8 45.9 45.5 44.9

Food and beverages.......................... . 26.3 25.9 25.6 25.6 24.8 24.2 23.7 23.3

Clothing and shoes.... ...................... 8.5 8.5 8.4 8.3 8.4 8.2 8.4 8.3

Gasoline and oil............................. 3.8 3.8 3.7 3.7 3.7 3.7 3.7 3.5

Other......................................... 9.7 9.6 9.6 9.9 9.9 9.8 9.7 9.8

Services............ .......... .................. 38.6 38.0 38.5 38.9 38.7 39.0 38.8 38.5

Housing................ ...................... 14.2 14.0 14.2 14.4 14.5 14.7 14.8 15.0

Household operation.......................... 6.0 5.9 5.9 6.0 6.0 6.0 6.0 5.9

Transportation............................... 3.2 3.1 3.2 3.0 2.9 2.9 2.8 2.7

Other......................................... 15.2 15.0 15.2 15.5 15.3 15.4 15.2 14.8

1/ Preliminary estimate. SOURCE: Historical data on personal consumption expenditures are from U.S. Department of Commerce, Office of Business

NOTE: Because of rounding, sums of individual items may Economics,

not equal totals.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
TABLE A-3. TOTAL EMPLOYMENT (PRIMARY AND INDIRECT)" PER BILLION DOLLARS OF DELIVERY TO FINAL DEMAND, 1970-'1/

(Producer*' valu*,— 1958 prices) 3/

Industry number and title

Livestock

and

livestock

products

Other

agricultural

products

Forestry

and

fishery

products

Agricultural,

forestry,

and

fishery

services

Iron and

ferroalloy

ores

mining

Nonferrous

metal

ores

mining

Coal

mining

Crude

petroleum and

natural

8**

Stone

and clay

mining

and

quarrying

ChesdLcal

and fertilizer

mineral

mining

1 2 3 4 5 6 7 8 9 10

1. Livestock end livestock products.................... 68,724 6,059 4,305 11,209 173 142 130 256 138 152

2. Other agricultural products......................... 26,516 79,835 9,771 30,841 266 195 19C 408 181 179

3. Forestry and fishery products....................... 67 39 57,475 28 57 27 60 18 22 23

4. Agricultural, forestry and fishery services......... 4,604 5, 161 2,086 122,144 35 29 31 44 29 27

5. Iron end ferroalloy ores mining..................... 9 13 6 8 13,218 222 30 8 44 40

6. Nonferrous metal ores mining........................ 15 25 10 14 875 29,064 45 14 41 46

7. Coal mining.......................................... 60 65 34 39 280 223 42,120 43 201 157

d. Crude petroleum and natural gas..................... HI 163 72 77 86 92 78 6,381 1C9 103

9. Stone and clay mining and quarrying................. 75 179 35 1b 48 76 62 21 44,726 753

10. Chemical and fertilizer mineral mining.............. 01 79 15 33 22 49 13 8 26 21,582

11. New construction....................................

12. Maintenance and repair construction................. i, 269 1,467 549 852 396 7 50 565 1,195 665 677

13. Ordnance and accessories............................ 1 1 1 1 1 1 1

14. Food and kindred products........................... 3,748 430 652 775 109 116 100 106 112 143

15. Tobacco manufactures............... ................. 2 2 1 1 2 3 2 2 3 3

16. Broad and narrow fabrics, yarn and thread mills..... 79 114 133 144 51 120 92 32 70 58

17. Miscellaneous textile goods and floor coverings..... 47 69 222 236 23 18 36 2 C 42 23

18. Apparel.............................................. 26 22 19 17 23 23 25 18 26 20

19. Miscellaneous fabricated textile products........... 77 106 32 52 19 19 15 13 18 19

20. Lumber and wood products, except containers......... 164 247 164 144 491 195 541 131 165 149

21. Wooden containers.................................... 125 31.6 45 129 11 9 8 6 13 9

22. Household furniture................................. 5 6 10 5 9 5 8 5 5 4

23. Other furniture and fixtures........................ 3 4 6 3 4 3 5 3 3. 3

24. Paper and allied products, except containers........ 251 233 489 246 141 3 76 268 165 516 326

25. Paperboard containers and boxes..................... 2 03 98 291 220 54 60 86 41 162 93

26. Printing and publishing............................. 597 835 1 ,288 476 395 452 287 774 488 403

27. Chemicals and selected chemical products............ 704 1,775 337 744 661 861 274 225 410 910

28. Plastics and synthetic materials.................... 85 141 121 107 96 99 136 53 171 104

29. Drugs, cleaning, and toilet preparations............ 69 47 21 30 25 32 20 16 34 31

30. Paints and allied products.......................... 26 22 39 18 27 .25 26 30 21 21

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
239-877 0-66— 10

31. Petroleum refining and related Industries.......... .. 1 37 288 123

32. Rubber and miscellaneous plastics products......... .. 2 54 377 3 81

33. Leather tanning and Industrial leather products.... . 3 3 3

34. Footwear and other leather products................ . 18 27 12

35. Glass and glass products........................... . 129 47 41

36. Stone and clay products............................ .. 95 152 57

37. Primary iron and steel manufacturing............... . 229 245 168

38. - Primary nonferrous metals manufacturing............ . 9 3 121 69

39. Metal containers................................... . 131 56 31

40. Heating, plumbing and structural metal products.... 53 62 49

41. Stampings, screw machine products and bolts........ . 126 75 47

42. Other fabricated metal products.................... 1 34 200 114

43. Engines and turbines............................... ’ 4 24 29

44. Farm machinery and equipment........................ . 137 370 6 8

45. Construction, mining and oil field machinery....... 17 30 14

46. Materials handling machinery and equipment......... 6 9 6

47. Metalworking machinery and equipment............... 39 48 32

48. Special Industry machinery and equipment........... 75 51 19

49. General Industrial machinery and equipment......... . 36 59 35

50. Machine shop products.............................. 60 70 37

51. Office, computing and accounting machines.......... . 29 44 69

52. Service Industry machines.......................... . 7 9 12

53. Electric industrial equipment and apparatus........ . 34 46 45

54. Household appliances..... ......................... 7 9 7

55. Electric lighting and wiring equipment.............. 23 28 21

56. Radio, television and consunlcation equipment...... . 28 32 30

57. Electronic components and accessories.............. . 22 27 24

58. Miscellaneous electrical machinery and equipment.... 46 58 17

59. Motor vehicles and equipment....................... 78 73 29

60. Aircraft and parts................................. 13 11 11

61. Other transportation equipment..................... . 31 31 6 Cl

62. Scientific and controlling Instruments............. 72 20 14

63. Optical, ophthalmic and photographic equipment..... 20 28 40

64. Miscellaneous manufacturing........................ o 7 80 159

65. Transportation and warehousing..................... 2,539 1,723 1,52 8

66. Communications; except broadcasting................ 314 326 2 95

67. Radio and television broadcasting.................. 85 135 22 9

68. Electric, gas, water and sanitary services......... 254 348 143

69. Wholesale and retail trade......................... 5,397 4,431 2,383

70. Finance and Insurance........ ..................... 1,703 1,832 2,181

71. Real estate and rental............................. 397 692 377

72. Hotels; personal and repair services, except auto... 272 305 255

73. Business services.................................. 2, 108 3,360 5,707

74. Research and development........................... 14 25 8

75. Automobile repair and services..................... 615 444 222

76. Amusements......................................... 104 141 139

77. Medical, educational and nonprofit organizations.... 1,146 281 24 0

78. Federal Government enterprises.......... .......... 3 76 455 513

79. State and local government enterprises............. 262 279 .150

80. Gross Imports of goods and services................

81. Business travel, entertainment and gifts...........

82. Office supplies............ ........................

TOTAL............................................ . 125,514 115,156 95,069

See footnotes at end of table,

134 126 115 107 61 159 120

248 356 245 662 185 755 369

2 3 2 2 2 3 2

14 9 9 12 5 12 11

42 35 29 37 27 39 31

7b 352 615 223 83 2,564 155

179 1,260 2,329 1,007 229 1,364 1 ,C34

78 201 525 393 115 183 231

42 i5 17 13 1C 15 18

38 128 88 1C3 81 83 69

57 121 133 441 81 125 123

342 204 242 426 271 245 187

12 68 54 5b 62 56 49

147 46 37 46 20 46 32

15 1 ,686 1, 183 1,650 158 1,564 1,017

5 184 30 221 8 5t>0 242

3 5 114 142 2 32 52 124 87

26 31 37 28 51 34 35

32 196 2 32 294 331 363 204

40 114 126 132 51 154 105

24 21 23 20 42 25 21

5 9 8 9 11 1C 7

27 127 273 411 230 328 285

5 8 8 9 8 8 7

18 49 59 126 27 50 31

23 104 34 35 33 35 35

17 57 36 39 136 39 37

28 40 30 29 2C 29 28

40 128 67 103 47 82 89

8 31 17 14 14 17 23

20 177 48 267 29 51 75

14 33 48 34 26 41 36

16 17 19 15 26 20 18

67 67 61 143 67 105 77

1 ,442 6,737 2,898 1,286 1,598 1,581 4,741

341 223 226 161 165 219 219

73 53 59 5 C 133 66 54

197 715 1,185 836 3C2 563 1,02 0

2 ,582 2,574 3, 165 3,672 1,754 3,716 2,865

1,239 1,264 1,950 1,476 1, 701 1,523 1,090

390 659 324 306 1,524 319 198

197 435 479 349 406 486 500

1 ,817 1,316 1,457 1,247 3,284 1,629 1,353

.12 15 20 12 6 14 17

273 356 220 195 308 227 272

81 96 90 76 162 53 93

352 221 2 70 273 222 2 54 232

332 414 509 462 393 454 438

177 575 718 496 311 622 669

180,047 39,973 53,574 63,771 25,316 70,737 44,716

137

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
TABLE A-3. TOTAL EMPLOYMENT (PRIMARY AND INDIRECT) —^ PER BILLION DOLLARS OF DELIVERY TO FINAL DEMAND

(Producers1 value,—^ 1958 prices)

, 1970-/--Continued

Industry number and title

New

construction

Maintenance and

repair

construction

Ordnance

and accessories

Food and

kindred

products

Tobacco

manufactures

Broad

and

narrow

fabrics,

yarn and

thread

mills

Miscellaneous

textile

goods

and floor

coverings

Apparel

Miscellaneous

fabricated

textile

products

Lumber

and wood

products,

except

containers

11 12 13 14 15 16 17 18 19 20

1. Livestock and livestock products................... .. 272 141 262 20,520 1,4 20 1*627 1,422 719 969 906

2. Other agricultural products................. ......... 847 235 287 14,941 15,959 9,048 2,641 3, 312 4,427 4,009

3. Forestry and fishery products...................... .. 522 189 34 338 36 45 44 653 ac 7,173

4. Agricultural, forestry and fishery services........ . 1)2 48 43 1,824 1 ,047 o4 2 242 265 335 617

5. Iron and ferroalloy ores mining.................... . 88 43 50 19 7 16 12 13 11

6. Nonferrous metal ores mining....................... .. 123 9C 239 22 17 35 27 22 28 25

7. Coal mining..................................... . 170 88 93 99 54 191 130 92 128 75

8. Crude petroleum and natural gas.................... .. 118 105 45 82 52 96 69 51 65 92

9. Stone and clay mining and quarrying................ .. 859 496 53 67 49 57 4 c 30 45 54

10. Chemical and fertilizer mineral mining............. . 25 20 14 27 28 63 5e 40 50 23

11.

12.

New construction.....................................

Maintenance and repair construction................ .

46,719

. 655 62,716 526 1,084 504 7 86 6 16 569 68C 774

13. Ordnance and accessories........................... .. 3 1 41,361 l 1 1 1 1 1

14. Food and kindred products............................. 190 120 265 24,571 334 354 290 236 2 92 249

15. Tobacco manufactures............................... . 4 2 7 3 10,896 3 '

4 4 4

16. Broad and narrow fabrics, yarn and thread mills.... . Ill 56 139 129 70 47,044 9,606 15,642 21,953 119

17. Miscellaneous textile goods and floor coverings.... .. 50 26 73 44 30 702 22,405 402 2,213 73

18. Apparel.............................................., 55 3 0 107 78 38 2 07 289 7 / » 6 C 6 8 74 147

19. Miscellaneous fabricated textile products.......... . 94 20 25 137 37 282 338 826 47,556 42

20. Lumber and wood products, except containers........ 4,975 1, 779 232 2 88 2 86 258 z n 2C3 358 69,231

21. Wooden containers................................... . 45 23 65 168 164 50 24 24 32 193

22. Household furniture................................. 3 36 1 7 71 8 4 12 156 11 197 169

23. Other furniture and fixtures....................... . 226 60 16 4 3 5 6 7 157 32

24. Paper and allied products, except containers....... 656 36 5 336 Ibi y48 764 955 5 64 1,165 671

25. Paperboard containers and boxes.................... 209 138 27i 8fci 6 13 614 498 557 750 343

26. Printing and publishing............................ 1,336 417 763 1,059 1 ,353 6 35 68C 768 8 71 967

27. Chemicals and selected chemical products...........

569 545 374 603 723 2,526 1 9 7 8 8 1,189 1,482 647

28. Plastics and synthetic materials................... 237 253 3C3 122 715 4,094 2t 544 1, 867 2,377 433

29. Drugs, cleaning, and toilet preparations........... 5) 39 47 1 24 62 165 101 75 115 64

30. Paints and allied products......................... 128 716 39 37 19 64 5S 37 158

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
31. Petroleum refining and related Industries........... . 159 185 67

32. Rubber and miscellaneous plastics products.......... . 619 363 1,416

33. Leather tanning and industrial leather products..... . 6 3 9

3A. Footwear and other leather products................. . 21 13 46

35. Glass and glass products............................ . 192 286 159

36. Stone and clay products................ ............ . 3,764 1,629 387

37. Primary Iron and steel manufacturing................ . 2,995 1,416 l ,580

38. Primary nonferrous metals manufacturing............. . 1,080 eo7 2,2 79

39. Metal containers.................................... . 27 55 21

40. Heating, plumbing and structural metal products..... . 3,8 93 2, G49 167

41. Stampings, screw machine products and bolts......... . All 231 724

42. Other fabricated metal products..................... . 1, 1 68 381 866

43. Engines and turbines................................ . 48 21 77

44. Farm machinery and equipment........................ . 48 17 66

45. Construction, mining and oil field machinery........ . ?17 95 73

46. Materials handling machinery and equipment.......... . 2 30 36 18

47. Metalworking machinery and equipment................ . 208 100 921

48. Special Industry machinery and equipment............ . 68 3 8 1 18

49. General industrial machinery and equipment.......... . AA5 148 53 l

50. Machine shop products............................... . 2 36 116 8,276

51. Office, computing and accounting machines........... . 75 23 84

52. Service Industry machines......... ................. . 141 56 126

53. Electric Industrial equipment and apparatus......... 578 313 1,255

54. Household appliances............................... . . 145 131 3 7

55. Electric lighting and wiring equipment.............. 83 3 407 73 2

56. Radio, television and communication equipment....... . 117 118 1 t 6l C

57. Electronic components and accessories........... . 195 73 7.71

58. Miscellaneous electrical machinery and equipment.... 12 44 91

59. Motor vehicles and equipment........................ 86 45 l 35

60. Aircraft and parts.................................. 33 17 1,529

61. Other transportation equipment...................... 10A 51 235

62. Scientific and controlling instruments.............. . 305 111 1 ,223

63. Optical, ophthalmic and photographic equipment...... . 48 18 74

64. Miscellaneous manufacturing......................... . 238 204 254

65. Transportation and warehousing...................... 3, 829 2, 06C 2,229

66. Communications; except broadcasting................. . A ’ 0 204 4G7

67. Radio and television broadcasting................... 216 55 8 4

68. Electric, gas, water and sanitary services.......... 468 264 338

69. Wholesale and retail trade............... .......... . 8,6'.8 6,614 4,151

70. Finance and Insurance............................... . 1,806 880 1 ,307

71. Real estate and rental.............................. . 25 A 148 1 75

72. Hotels; personal and repair services, except auto.... 605 322 963

73. Business services................................... . 5,384 ) ,371 2,099

74. Research and development............................ 26 19 27

75. Automobile repair and services...................... 904 368 22 5

76. Amusements....... ...................................

? I Q 80 152

77. Medical, educational and nonprofit organizations.... 37 2 204 326

78. Federal Government enterprises...................... 647 319 679

79. State and local government enterprises.............. 412 233 269

80. Gross Imports of goods and services.................

81. Business travel, entertainment and gifts............

82. Office supplies.....................................

TOTAL............................................. • 102,694 91,527 85,894

Sea footnotes at end of table

135 88 150

385 291 679

3 4 14

18 13 25

626 33 217

116 63 118

591 147 25b

162 114 167

716 63 54

56 25 49

256 49 86

229 169 210

18 16 15

85 91 54

20 14 28

7 4 11

79 37 83

31 32 44 3

50 30 76

84 37 63

46 64 39

10 10 10

51 28 71

11 5 9

51 23 48

37 27 43

31 22 36

40 20 24

74 29 40

22 10 19

49 23 42

27 15 31

31 41 49

120 148 225

4,116 1,643 3,542

379 227 336

142 210 108

379 189 596

5,738 2,590 5,532

1 ,667 905 1,745

319 22 2 275

522 347 809

3,531 5,2 38 2,691

23 19 106

901 257 405

160 177 141

614 290 423

518 706 676

369 169 452

>1,685 50,425 91,929

78 105 152

466 1,944 630

129 37 4

131 328 26

97 163 132

74 110 326

178 269 306

126 167 179

29 37 31

33 45 7 C

6 7 112 235

189 296 583

11 13 19

26 34 32

16 21

6 9 34

47 80 73

163 230 117

4C 82 129

44 81 113

35 40 32

6 10 9

46 67 60

10 12 10

29 46 108

3e 50 39

33 47 34

16 22 39

28 43 81

13 29 24

36 39 175

35 2C5 30

34 41 26

1, 161 1 ,C39 193

2,281 3, C09 4,712

352 374 341

95 1C1 93

354 471 414

5,274 6,894 5 ,330

1,595 1,687 1,632

273 303 263

1,027 971 808

2,364 2,518 2,315

47 60 16

288 455 1,258

136 149 134

412 432 347

687 723 454

287 386 414

:4,788 111,699 109 ,905

107

G91

15

65

131

12 7

2C5

136

AO

37

76

2ul

13

37

20

S

67

165

51

57

32

7

53

6

A 1

36

31

2G

A2

25

39

26

AO

512

A 23

327

85

A33

799

ess

231

&5A

116

71

357

n s

352

635

362

761

139

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
TABLE A-3. TOTAL EMPLOYMENT (PRIMARY AND INDIRECT)PER BILLION DOLLARS OF DELIVERY TO FINAL DEMAND, 1970^--Continued

(Producers' v a l u e d 1958 prices)

Industry number end title

Wooden

containers

Household

furniture

Other

furniture

and

fixtures

Paper

and

allied

products

except

containers

Paperboard

containers

and

boxes

Printing

and publishing

Chemicals

and

selected

chemical

products

Plastics

and

synthetic

materials

Drugs,

cleaning,

and

toilet

preparations

Paints

and

allied

products

21 22 23 24 25 26 27 28 29 30

1. Livestock end livestock products..................... 497 564 282 409 286 366 555 384 805 676

2. Other agricultural products.......................... 1,804 1,338 539 710 443 458 645 432 717 636

3. Forestry and fishery products........................ 2, 993 808 42 9 604 289 147 151 53 72 81

4. Agricultural, forestry and fishery services.......... 282 160 81 102 67 61 8 C 57 53 86

5. Iron and ferroalloy ores mining...................... 50 50 117 14 12 9 98 42 28 55

6. Nonferrous metal ores mining......................... 25 69 96 33 23 23 233 97 49 89

7. Coal mining........................................... 113 143 184 292 170 102 336 293 133 193

8. Crude petroleum and natural gas...................... 84 55 56 110 85 52 294 179 ICO 150

9. Stone and clay mining and quarrying.................. 47 61 79 248 124 68 17C 96 93 129

10. Chemical and fertilizer mineral mining............... 14 26 19 80 43 33 695 274 56 212

11.

12.

New construction......................................

Maintenance and repair construction.................. 721 626 581 916 .892 905 747 935 583 722

13. Ordnance and accessories............................. 1 1 3 1 2 4 1 1 2 1

14. Food and kindred products............................ 217 423 2C9 366 258 338 507 358 843 74 3

15. Tobacco sianufactures............. .................... 4 4 5 4 4 8 7 4 5 6

16. Broad and narrow fabrics, yarn and thread mills...... 92 3,03S 494 531 293 169 156 187 135 121

17. Miscellaneous textile goods and floor coverings...... 46 506 524 136 90 86 52 73 69 43

18. Apparel............................................... 79 1C2 135 104 125 41 73 ec 70 75

19. Miscellaneous fabricated textile products............ 31 112 84 170 91 55 174 83 79 70

20. Lumber and wood products, except containers.......... 26,848 7,697 4,057 5,706 2,696 1,297 482 487 44 8 394

21. Wooden containers..................................... 77,571 51 44 61 62 20 32 31 25 25

22. Household furniture................................... 406 66.47C 1,564 22 13 11 8 7 10 7

23. Other furniture and fixtures......................... 78 411 52,854 17 10 30 5 5 6 4

24. Paper and allied products, except containers......... 489 788 757 32,727 14,820 7,119 843 1,710 1,362 1,059

25. Paperboard containers and boxes.................... . 2 72 932 981 1,337 36,293 545 426 476 1,466 671

26. Printing and publishing............................... 853 851 73 3 1 ,494 1,398 65,189 586 502 3,327 1,079

27. Chemicals and selected chemical products............. 366 715 502 1 ,404 841 807 23.C67 8,887 3,073 6,914

28. Plastics and synthetic materials..................... 228 762 383 691 539 210 907 21,753 391 3,768

29. Drugs, cleaning, and toilet preparations............. 52 55 45 55 73 46 39 7 365 17,378 397

30. Paints and allied products........................... 100 475 355 47 34 25 125 196 85 19,012

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
31. Petroleum refining and related Industries........... . 134 89 81

32. Rubber and miscellaneous plastics products.......... 432 2,157 762

33. Leather tanning and Industrial leather products..... • 4 51 57

34. Footwear and other leather products................. n 61 32

35. Glass and glass products............................ • 89 782 1,865

36. Stone and clay products............... ............. . 274 312 330

37. Primary Iron and steel manufacturing................ . 1,750 1,673 4,125

38. Primary nonferrous metals manufacturing............. 179 581 811

39. Metal containers.................................... 23 54 41

40. Heating, plumbing and structural metal products..... 33 201 5 86

41. Stampings, screw machine products and bolts......... . 262 458 613

42. Other fabricated metal products..................... . 633 2,753 1,894

43. Engines and turbines................................ 17 18 22

44. Farm machinery and equipment........................ 23 27 51

45. Construction, mining and oil field machinery........ . 27 38 62

46. Materials handling machinery and equipment.......... . 20 4C 18

47. Metalworking machinery and equipment................ 102 221 323

48. Special Industry machinery and equipment............ . 227 197 75

49. General Industrial machinery and equipment.......... . 109 12C 206

50. Machine shop products.............. ............... . . 156 149 220

51. Office, computing and accounting machines........... . 29 40 110

52. Service industry machines........................... . 10 18 263

53. Electric industrial equipment and apparatus......... . 70 99 189

54. Household appliances................................ . 11 52 59

55. Electric lighting and wiring equipment.............. 162 106 114

56. Radio, television and communication equipment....... 41 70 147

57. Electronic components and accessories............... . 37 66 103

58. Miscellaneous electrical machinery and equipment.... . 41 29 33

59. Motor vehicles and equipment...................... . . 90 61 120

60. Aircraft and parts.................................. . 23 24 47

61. Other transportation equipment...................... . 116 59 89

62. Scientific and controlling Instruments.............. . 31 53 3 84

63. Optical, ophthalmic and photographic equipment...... . 24 33 29

64. Miscellaneous manufacturing......................... . 152 372 852

65. Transportation and warehousing...................... . 4,590 3,125 2,795

66. Communications; except broadcasting................. . 3 36 445 383

67. Radio and television broadcasting................... . 80 111 85

68. Electric, gas, water and sanitary services.......... 516 446 470

69. Wholesale and retail trade.......................... . 6,193 6, 093 5,826

70. Finance and insurance............................... . 1,624 1,404 1,316

71. Real estate and rental.............................. . 272 266 239

72. Hotels; personal and repair services, except auto.... . 1,043 928 855

73. Business services................................... . 2,003 2, 766 2,121

74. Research and development............................ . 15 28 30

75. Automobile repair and services...................... . 1,426 545 485

76. Amusements............................... ........... . 136 152 133

77. Medical, educational and nonprofit organizations.... . 381 362 333

78. Federal Government enterprises........ ............. . 519 533 531

79. State and local government enterprises.......... . . 466 365 364

80. Gross Imports of goods and services.................

81. Business travel, entertainment and gifts............

82. Office supplies.....................................

TOTAL............................................. 141,367 115,930 96,918

See footnotes at end of table,

162 130 74

1 ,391 1,199 458

5 6 5

32 39 31

76 152 47

394 219 135

330 323 192

213 158 165

38 118 24

56 51 44

186 166 95

716 477 293

16 14 16

17 13 23

38 26 21

15 11 7

120 112 64

202 256 191

96 94 52

108 103 58

43 32 81

10 9 12

88 71 74

10 12 12

111 84 46

41 39 90

36 34 59

24 22 19

42 39 36

22 22 48

55 48 38

48 35 40

45 33 2 38

162 162 288

3,938 4,008 2,755

351 333 806

99 80 2C2

916 597 442

4,865 5,170 3,629

1,412 1,493 1,721

201 2 37 472

646 7 39 1,111

2 ,464 2,005 5,025

49 29 19

453 437 390

130 123 247

329 365 349

620 563 1,399

o78 479 362

70,487 81,044 100,228

296 166 249

1,202 1,159 628

4 5 4

18 24 21

118 987 101

195 22 9 609

406 626 1 ,125

352 244 359

150 572 1,142

63 48 78

141 279 156

302 564 299

17 33 17

16 54 25

49 35 44

22 11 19

147 105 122

273 158 183

99 70 91

106 92 122

47 167 49

11 32 11

119 80 89

10 18 14

56 39 46

59 67 49

44 60 40

22 22 25

37 42 45

22 22 24

47 42 48

49 248 45

140 101 56

155 253 168

3, 796 2,762 4,000

377 508 446

110 534 123

665 407 532

3,628 3,911 5,157

1,660 1,705 1,780

243 291 300

602 765 807

2,754 13,340 3,070

365 45 126

371 408 503

143 437 174

338 32 8 376

1,052 1,215 869

495 334 437

59,922 65,189 62,224

H

4="

W

487

652

5

22

159

298

709

736

257

62

159

393

2C

20

SC

46

135

527

121

126

65

14

159

12

46

55

5C

28

46

24

53

53

57

195

,C43

425

112

87C

i,022

,818

302

820

,785

261

459

171

337

80C

613

i,C75

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
TABLE A-3. TOTAL EMPLOYMENT (PRIMARY AND INDIRECT)—^ PER BILLION DOLLARS OF DELIVERY TO FINAL DEMAND, 1970^/— Continued

(Producer*' value,^ 1958 prices)

Industry number and title

Petroleum

refining

and

related

industries

Rubber

and miscellaneous

plastics

products

Leather

tanning

and industrial

leather

products

Footwear

and

other

leather

products

Glass and

glass

products

Stone and

clay

products

Primary

iron

and

steel

manufacturing

Primary

nonferrous

metals

manufacturing

Metal

containers

Beating,

plumbing

and structural

metal

products

31 32 33 34 35 36 37 38 39 40

1. Livestock and livestock products..................................... . 220 336 198 257 194 219 161 16C 159 187

2. Other agricultural products............... .......... . 313 572 214 574 293 215 200 210 194 233

3. Forestry and fishery products....................... . 25 6 C 91 122 192 58 39 3 6 36 54

4. Agricultural, forestry and fishery services......... . 38 64 33 63 47 42 34 35 35

5. Iron and ferroalloy ores mining.................. . . 16 22 11 9 12 35 1,057 96 399 269

6. Nonferrous metal ores mining........................ 24 48 26 20 30 49 181 3,059 214 319

7. Coal sdning.......................................... 100 175 147 79 165 340 1,223 199 502 358

8. Crude petroleum and natural gas..................... . 3,228 30 59 38 70 108 132 77 6 2 78

9. Stone and clay mining and quarrying................. 194 102 60 43 657 3, 312 216 87 107 111

10. Chemical and fertilizer mineral sdning.............. 32 108 81 33 42 95 31 33 22 16

11.

12.

New construction....................................

Maintenance and repair construction................. . 1,056 627 323 411 596 735 I f 186 6C6 752 689

13. Ordnance and accessories............................ 1 2 1 1 1 1 1 2 2 4

14. Food and kindred products........................... . 140 240 202 178 174 206 147 147 148 177

15. Tobacco manufactures................................ . 2 4 2 4 4 4 3

3 3

16. Broad and narrow fabrics, yarn and thread mills..... 44 1,476 96 1 ,759 94 189 74 188 90 114

17. Miscellaneous textile goods and floor coverings..... . 21 1,450 38 549 32 54 29 45 51 33

18. Apparel................... ........................... 32 249 22 479 118 29 66 81 59 121

19. Miscellaneous fabricated textile products........... 25 83 103 82 30 52 29 36 25 42

20. Lumber and wood products, except containers......... 168 395 158 945 1,764 468 305 272 2 84 452

21. Wooden containers................................... 10 20 117 52 295 95 24 12 41 74

22. Household furniture................................. 6 24 4 30 135 7 14 10 11 74

23. Other furniture and fixtures........................ 4 13 2 6 5 5 6 5 6 99

24. Paper and allied products, except containers........ 354 849 335 864 1,575 1,213 335 377 582 397

25. Paperboard containers and boxes..................... 142 515 177 651 3,233 5 06 123 135 546 278

26. Printing and publishing............................. . 907 943 555 1 ,301 778 819 691 631 84 6 707

27. Chemicals and selected chemical products............ 970 2,795 2,029 837 1,058 997 658 795 541 42 7

28. Plastics and synthetic materials.................... 114 4,659 174 679 164 551 137 603 301 181

29. Drugs, cleaning, and toilet preparations............ . 91 128 593 152 72 179 79 64 10i 48

30. Paints and allied products.......................... 39 62 20 22 25 54 51 46 384

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
31. Petroleum refining and related Industries...........

. 6,1!7 124 89

32. Rubber and miscellaneous plastics products..........

217 33,523 595

33. Leather tanning and Industrial leather products.....

.2 40 36,602

34. Footwear and other leather products.................

. io 141 233

35. Glass and glass products............................ 42595 68

36. Stone and clay products.............................190 292 501

37. Primary Iron and steel manufacturing................

3 86 423 153

38. Primary nonferrous metals manufacturing.............

. >55 270 110

39. Metal containers....................................

186 51 46

40. Heating, plumbing and structural metal products.....

73 63 21

41. Stampings, screw machine products and bolts.........

94 262 85

42. Other fabricated metal products.....................

657 643 166

43. Engines and turbines................................

43 158

44. Farm machinery and equipment.........................

20 188

45. Construction, mining and oil field machinery........ 98 31

19

46. Materials handling machinery and equipment..........11 13

7

47. Metalworking machinery and equipment................ 76

121 67

48. Special Industry machinery and equipment............

5 2 137 56

49. General Industrial machinery and equipment..........

195 103 38

50. Machine shop products....

...........................

62 33 C 48

51. Office, computing and accounting machines...........

49 39 22

52. Service Industry machines...........................

. 11 10

5

53. Electric Industrial equipment and apparatus......... 15

1 97 58

54. Household appliances................................

9 245

55. Electric lighting and wiring equipment.............. 29

116 63

56. Radio, television and communication equipment....... 52 89

23

57. Electronic components and accessories............... 90 70 21

58. Miscellaneous electrical machinery and equipment.... 23 26 13 59. Motor vehicles and equipment........................ 47 35 23

60. Aircraft and parts..................................

21 73 12

61. Other transportation equipment......................

47 51 25

62. Scientific and controlling Instruments..............

31 109 40

63. Optical, ophthalsiic and photographic equipment...... 31

64 21

64. Miscellaneous manufacturing.........................

103 352 90

65. Transportation and warehousing......................

4,125 2,943 2,154

66. Communications; except broadcasting.................

253 344 244

67. Radio and television broadcasting................... 15

1 103 58

68. Electric, gas, water and sanitary services..........

597 513 305

69. Wholesale and retail trade..........................

2,254 4,306 3,060

70. Finance and Insurance...............................

1,786 1, 390 1,200

71. Real estate and rental..............................

900 231 119

72. Hotels; personal and repair services, except auto.... 375 733 460

73. Business services...................................

3, 738 2,570 1,441

74. Research and development...........................

.

53 92 26

75. Automobile repair and services......................

434 300 242

76. Amusements.

..........................................

1.64 138 79

77. Medical, educational and nonprofit organizations....

315 333 247

78. Federal Government enterprises......................

657 624 83 7

79. State and local government enterprises..............

493 389 252

80. Gross Imports of goods and services.................

81. Business travel, entertainment and gifts............

82. Office supplies.....................................

TOTAL.............................................

. 33,989 69,460 55,934

See footnotes at end of table,

57 83 153

3,099 4 32 785

7,0683

8

1C1 ,157 17 21

97 46,934 101

279 1,455 42,488

212 260 509 38

130 194 226

23 30 30

34 54 76

113 2°6 173

494 337 7071

12 13 19

20 21 18

15 42 151 7 15 52

63 130 143

54 58 81

44 113 92

74 116 122

1

46 32 34 9 13 11

50 85 123 9 21 10

76 162 228

40 33 42

71 32 52

16 22 31

27 34 59

19 15 26

30 36 52

133 73 60

81 29 31

324 132 220

2,072 2,739 4,550

5

335 293 339

137 88 94

280 959 1,005

1

3,843 4,063 3,791

4

1 ,425 1,480 1,675

1

206 187 227

955 7 32 714

3 ,421 2,192 2,350

1

21 101 22

266 332 627

156 123 132

342 296 314

776 711 562

236 606 732

138,690 78,085 74,805 71,

99 120 lit.

320 924 349 3 17 10

15 17 20

54 54 240

482 451 606

1,346 14,270 9,494

29,929 1,767 2,894

21 24,371 23

79 298 38,503

787 934 1,200

836 725 1 ,786

25 28 144

20 44 109

159 112 218

21 24 69

642 901 611

54 67 208

324 504 778

575 5C6 798

29 32 52

19 18 243

347 254 780

3C 93 249

451 94 214

125 50 93

95 47 156

318 41 66

109 89 189

22 100 68

81 76 405

73 65 561

27 28 36

175 139 163

2,903 3,839 3,158

336 301 407

77 86 92

913 731 635

4,647 5,088 4,885

1,606 1,524 1 ,613

193 203 211

576 6C3 772

1,919 2,152 2 ,285

88 55 67

313 336 463

110 117 134

335 358 351

507 536 555

587 520 459

60,858 70,626 83,214w

■p-Ul

19C

3933

1A

47

745

202

945

22

2oe

543

117

37

86

246

41

558

104

304

013

32

15

343

18

87

54

52

37

118

30

125

60

26

125

C22

371

8C

203

50C

579

235

600

985

116

367

115

337

579

809

106

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
TABLE A-3. TOTAL EMPLOYMENT (PRIMARY AND INDIRECT)^ PER BILLION DOLLARS OP DELIVERY TO PINAL DEMAND, 1970^--Continued

(Producer*' v a l u e 1958 prices)

Industry number sad title

Stampings, screw

machine

products,

and bolts

Other

fabricated

metal

products

Engines

and

turblnaa

Farm

machinery and

equipment

Construction, mining and

oil field

machinery

Materials

handling

machinery and

equipment

Metalworking

machinery and

equipment

Special

industry

machinery and

equipment

General

industrial

machinery and

equipment

Machineshop

products

41 42 43 44 45 46 47 48 49 50

1. Livestock and livestock products...................... 196 205 184 199 192 241 192 233 217 179

2. Other agricultural products........................... 251 272 211 266 224 2 94 230 288 252 209

3. Forestry and fishery products......................... 75 98 30 55 38 43 35 74 42 23

4. Agricultural, forestry and fishery services........... 40 44 36 188 40 47 36 45 42 33

5. Iron and ferroalloy ores and nlnlng................... 244 239 145 170 207 162 117 127 145 111

6. Nonferrous natal ores mining.......................... 280 291 187 100 101 131 159 215 172 311

7. Coal mining............................................ 342 330 241 268 299 228 169 187 215 176

8. Crude petroleum and natural gaa....................... 81 74 57 60 65 61 55 62 58 75

9. Stona and clay mining and quarrying................... 101 105 82 92 97 85 76 74 2C4 113

10. Chemical and fertiliser mineral mining................ 20 24 12 15 14 15 11 14 13 11

11.

12.

New construction.......................................

Maintenance and repair construction................... 670 636 504 572 567 595 621 58C 597 724

13. Ordnance and accessories.............................. 5 3 4 14 4 3 4 9 7 2

14. Pood and kindred products............................. 183 191 179 175 186 230 178 224 212 167

15. Tobacco manufactures................................... 4 5 5 4 5 6 5 6 6 4

16. Broad and narrow fabrics, yarn and thread mills....... 122 157 103 125 100 220 10 3 166 119 83

17. Miscellaneous textile goods and floor coverings....... 48 71 46 73 46 72 39 49 34 24

18. Apparel................................................ 129 128 105 107 110 121 124 127 122 137

19. Miscellaneous fabricated textile products............. 45 30 36 32 29 32 43 25 26 22

20. Lumber and wood products, except containers........... 645 864 218 461 291 320 274 626 32 7 152

21. Wooden containers...................................... 43 59 13 31 16 19 15 25 22 12

22. Household furniture.................................... 29 82 15 16 26 20 15 42 42 12

23. Other furniture and fixtures.......................... 16 62 9 40 10 37 8 11 20 6

24. Paper and allied products, except containers.......... 568 4 94 365 341 299 368 238 352 387 215

25. Paperboard containers and boxes.;..................... 468 318 294 205 144 189 113 133 183 83

26. Printing and publishing................................ 729 866 726 895 709 812 588 723 6 91 563

27. Chemicals and selected chemical products.............. 513 605 288 376 324 372 262 364 321 240

28. Plastics and synthetic materials...................... 330 231 193 276 193 304 158 238 169 132

29. Drug*, cleaning, and toilet preparations.............. 58 50 44 49 47 55 38 49 43 44

30. Paints and allied products............................ 142 68 59 113 64 95 3* 39 48 25

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
31. Petroleum refining and related Industries............

• 1 20 109 87

32. Rubber and miscellaneous plastics products...........

• 600 584 561

33. Leather tanning and Industrial leather products......

• 12

9 12

34. Footwear and other leather products..................

• 50 29 24

35. Glass and glass products.............................

• 126 74 98

36. Stone and clay products..............................

• 64 3 6C7 586

37. Primary Iron and steel manufacturing.................

• 8,589 8,401 5,075

38. Primary nonferrous metals manufacturing..............

• 2,529 2,572 1,701

3?. Metal containers.....................................

107 40 18

40. Heating, plumbing and structural metal products......

• 410 450 193

41. Stampings, screw machine products and bolts..........

• 58,188 1,515 1,509

42. Other fabricated smtal products......................

• 1,763 40,980 569

43. Engines and turbines.................................

• 71 61 29,625

44. Farm machinery and equipment.........................

• 76 77 603

45. Construction, mining and oil field machinery.........

• 98 201 1 ,192

46. Materials handling machinery and equipment...........

. 31 68 94

47. Metalworking machinery and equipment.................

. 871 1, 600 1,337

48. Special industry machinery and equipment.............

• 79 168 116

49. General Industrial swchlnery and equipment...........

• 218 606 1,636

50. Machine shop products....... ........................

• 726 64 3 3,41 8

51. Office, computing and accounting machines............

• 55 44 35

52. Service Industry machines............................

. 65 56 29

53. Electric Industrial equipment and apparatus..........

. 374 396 1,064

54. Household appliances.................................

. 98 86 24

55. Electric lighting and wiring equipment...............

. 293 207 157

56. Radio, television and communication equipment........

. 90 89 106

57. Electronic components and accessories................

. 124 116 117

58. Miscellaneous electrical machinery and equipment.....

. 88 69 784

59. Motor vehicles and equipment.........................

. 661 212 718

60. Aircraft and parts...................................

. 58 47 269

61. Other transportation equipment.......................

. 77 102 527

62. Scientific and controlling Instruments...............

• 169 237 139

63. Optical, ophthalmic and photographic equipment.......

. 48 36 30

64. Miscellaneous manufacturing..........................

. 353 267 175

65. Transportation and warehousing.......................

. 3,003 2, 893 2,406

66. Communications; except broadcasting..................

. 331 349 331

67. Radio and television broadcasting....................

. 83 97 88

68. Electric, gas, water and sanitary services...........

. 668 635 425

69. Wholesale and retail trade...........................

• 4,315 4, 674 4,004

70. Finance and Insurance................................

• 1,567 1,468 1 ,305

71. Real estate and rental...............................

. 220 199 175

72. Hotels; personal and repair services, except auto....

. 802 e2 5 748

73. Business services....................................

. 2,071 2,422 2,190

74. Research and development.............................

. 44 42 553

75. Automobile repair and services.......................

. 339 358 256

76. Amusements........................................... 128

140 137

77. Medical, educational and nonprofit organisations.....

. 342 332 32 5

78. Federal Government enterprises.......................

. 541 545 497

79. State and local government enterprises...............

. 472 450 321

80. Gross Imports of goods and services..................

81. Business travel, entertainment and gifts.............

82. Office supplies......................................

TOTAL..............................................

• 99,165 82,791 70,776

See footnotes at end of table,

91 97 92 83 96 86 113

1 ,366 773 1,213 452 619 455 277

43 11 18

9 45 15 25

25 20 44 27 23 22 154

82 68 104 88 77 70 44

526 558 485 559 451 695 1 ,048

6,062 7,385 5,725 4,009 4,415 5,093 3,783

819 807 1,134 1,455 1,985 1,557 2,950

23 19 23 23 19 19 15

241 837 6 83 269 576 8 84 171

2,119 893 1,293 1,68C 982 947 528

712 1,065 1,432 1,322 1,127 1,261 1 ,249

1 ,271 895 482 103 90 406 164

39,096 783 263 93 146 131 54

556 37,030 2,002 148 378 396 194

60 287 37,954 132 246 368 38

1 ,274 1,280 1,244 5 2 , C05 1,480 1,250 1,197

184 152 265 402 44,328 350 316

2,775 2,956 3,701 1,805 2,927 41,866 671

1 ,905 920 1,9 54 892 697 925 85,503

47 48 82 33 93 41 53

47 53 90 81 160 263 34

608 783 2,493 1,423 2,007 2,571 411

129 31 31 84 70 42 21

128 139 273 137 152 186 130

88 123 140 116 712 258 110

87 108 201 127 488 242 85

375 139 165 90 72 1C5 137

483 419 338 1,140 168 252 175

104 73 106 158 132 418 98

184 330 301 77 230 330 205

160 133 167 152 218 467 127

38 31 37 32 116 43 31

170 145 1,442 223 165 138 111

2,615 2,693 2,667 1,577 2,383 2,515 2,059

356 374 420 525 616 597 469

131 96 107 80 89 88 75

463 511 459 421 450 475 486

4,736 4,619 5,501 3,842 4,812 5,231 3,913

1,500 1,438 1,604 1,377 1,420 1,348 1,440

194 191 240 265 225 204 251

733 779 913 819 505 874 836

3,274 2,392 2,674 1,985 2,225 2,204 1 ,874

52 47 38 26 25 34 26

344 3 30 338 266 377 315 325

157 139 161 126 144 143 121

325 337 345 303 331 329 314

661 506 607 453 518 531 489

358 375 351 307 339 355 346

83,099 78,665 87,580 86,148 85,672 82,135 117,138H

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
TABLE A-3 TOTAL EMPLOYMENT (PRIMARY AMD INDIRECT)^ PER BILLION DOLLARS OF DELIVERY TO FINAL DEMAND, 1970^ — Continued

(Producer*1 value,2^ 1958 prices)

Industry number and tltl.

Office,

computing,

and

accounting

machines

Service

industry

machines

Electric

Industrial

equipment

and

apparatus

Household

appliances

Electric

lighting

and

wiring

equlpsMnt

Radio,

television,and

comaunlcation

equipment

Electronic

components

and accessories

Miscellaneous

electrical

machinery and

equipment

Motor

vehicles

and

equipment

Aircraft

and

parts

51 52 53 54 55 56 57 58 59 60

1. Livestock and livestock products..................... . 268 244 266 236 224 2 82 285 245 201 126

2. Other agricultural products.......................... . 283 305 293 310 2 63 325 323 290 306 162

3. Forestry and fishery products........................ . 33 77 44 63 49 63 48 36 43 36

4. Agricultural, forestry and fishery services.......... . 44 51 44 48 46 49 50 44 45 25

5. Iron and ferroalloy ores mining...................... . 34 122 93 120 97 36 4S 89 151 61

6. Nonferrous metal oras mining......................... . 85 246 2 92 202 271 127 177 442 147 164

7^ . 72 203 153 205 161 95 114 143 256 110

8.

9.

. 32 61 51 56 52 40 50 56 63 38

Stone and clay mining and quarrying.................. . 37 83 66 85 90 55 77 96 84 49

10. Chemical and fertilizer mineral mining............... . 10 22 18 23 26 19 .37 38 21 10

11.

12.

13.

14.

Hew construction......................................

. 414 665 533 6 06 516 528 550 525 796 451

. 13 8 15 7 3 132 47 5 6 336

Food and kindrad products............................ . 274 229 269 220 217 281 276 237 172 116

15.

16.

17.

. 8 6 7 5 5 8 7 6 4 3

. 91 149 115 292 120 163 115 217 548 104

Miscellaneous textile goods and floor coverings...... . 42 62 41 104 58 51 38 127 252 50

18. Apparel............................................... . 103 120 117 121 123 119 143 134 115 113

19. Miscellaneous fabricated textile products............ . 20 37 25 36 27 27 29 49 474 20

20. Lumber and wood products, except containers.......... , 223 651 325 519 379 498 335 229 341 293

2 1 .

22.

. 29 306 16 316 25 17 21 17 22 11

. 49 92 49 33 22 1,207 356 29 41 68

2 3 .

2 4 .

. ia 53 10 33 7 15 9 7 27 113

Paper and allied products, except containers......... . 542 619 612 671 707 652 798 519 557 230

2 5 . Paperboard containers and boxes...................... . 182 518 292 550 895 416 426 449 267 134

2 6 . Printing and publishing.............................. . 1.021 8C6 692 1,879 706 928 660 869 1, C81 457

2 7 . Chemicals and selected chemical products............. . 261 582 493 622 742 5 54 1,114 1,090 557 262

2 8 . Plastics and synthetic materials..................... . 214 330 413 4 86 8 29 465 438 685 478 184

2 9 . Drugs, cleaning, and toilet preparations............. . 29 58 39 51 50 42 46 53 66 33

3 0 . Paints and allied products........................... . 40 160 93 165 135 47 46 42 150 4 1

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
31. Petroleum refining and related Industrie*........... . 91 76

32. Rubber and miscellaneous plastics products........... 992 460

33. leather tanning and Industrial leather products..... . 13 9

34. Footwear and other leather products.................. 35 25

35. Glass and glass products............................ . 247 165

36. Stone and clay products.............................. 573 473

37. Primary Iron and steel manufacturing................. 4,164 2,816

38. Primary nonferrous metals manufacturing............. . 2,280 2,756

39. Metal containers..................................... 33 25

40. Heating, plumbing and structural metal products...... 1,096 199

41. Stampings, screw machine products and bolts.......... 2, 546 1,161

42. Other fabricated metal products..................... . 1,577 686

43. Engines and turbines.............................. . 116 43 7

44. Farm machinery end equipment......................... 52 39

45. Construction, mining and oil field machinery..... . .. 3C 97 113

46. Materials handling machinery and equipment............. 12 74 35

47. Metalworking suchlnery and equipment................. 527 875

48. Special industry machinery and equipment............. 185 95

49. General Industrial machinery and equipment........... 1,027 601

50. Machine shop products................................ 405 432

51. Office, computing end accounting machines........... ...35, 504 57 68

52. Service Industry machines........................... . 21,438 26

53. Electric Industrial equipment and apparatus............ 95>4 4,234 41,532

54. Household appliances................................ . 1,617 40

55. Electric lighting and wiring equipment................. 296 54C 974

56. Radio, television and communication equipment.......... 775 359 801

57. Electronic component* and accessories.................. 7.586 349 1,844

58. Miscellaneous electrical machinery and equipment....... 51 83 174

59. Motor vehicles end equipment......................... 52 389 122

60. Aircraft and parts................................... .. 179 189 62

61. Other transportation equipment......................... 36 118 300

62. Scientific and controlling Instruments................. 263 1,035 799

63. Optical, ophthalmic and photographic equipment....... 41 48 64

64. Miscellaneous manufacturing.......................... 181 222 142

65. Transportation and warehousing......................... 1,852 2,799 2,414

66. Coomunicatlons; except broadcasting.................... 3 59 416 364

67. Radio and television broadcasting...................... 121 109 81

68. Electric, gas, water and sanitary services............. 256 486 401

69. Wholesale and retail trade...........................^ 4,836 6,334 4,175

70. Finance and insurance............................... . 1,039 1,657 1,122

71. Real estate and rental............................... ,. 1 85 277 195

72. Hotels; personal and repair services, except auto.... ,. 1,014 881 1,004

73. Business services.................................... 3,025 2, 708 2,021

74. Research and development............................ . 17 34 33

75. Automobile repair and services...... ...... ......... .. 225 399 271

76. Amusements........................................... .. 181 160 151

77. Medical, educational and nonprofit organizations.....,. 269 361 324

78. Federal Government enterprises.......................,. 566 634 652

79. State and local government enterprises...............,. 2 15 377 309

80. Gross Imports of goods end services..................

81. Business travel, entertainment and gifts.............

82. Office supplies......................................

TOTAL.............................................. ^.65,796 71,305 77,425

See footnotes st end of table,

81 77 61 73 82 92 55

1,890 1,029 755 564 2,486 1,675 537

26 12 13 7 10 21 5

159 25 27 25 31 28 19

196 1,470 555 1, 120 220 765 89

614 551 373 515 681 455 363

4,108 3,219 1,156 1,505 2,186 5,311 2,076

1,843 2,168 1,179 1,620 3,924 1,274 1,543

34 31 23 29 28 30 15

756 162 91 82 92 173 101

3,271 1,591 1,469 1,637 1, 626 2,708 1 ,345

1 ,724 1,052 813 855 693 2,557 801

61 35 28 30 76 165 69

51 35 21 18 55 95 26

80 65 44 66 121 98 51

23 14 11 12 22 34 35

693 511 461 474 1,005 1,113 1 ,317

71 52 59 70 69 79 63

720 218 172 154 995 570 738

381 379 268 253 1,068 1,162 1 ,347

119 39 133 214 72 61 56

786 37 32 14 27 89 38

2,119 1,628 1,157 1,595 1,305 376 425

23,797 31 35 42 103 29 95

526 46,230 607 515 2,013 414 178

158 238 32,168 1,227 432 544 1 ,495

218 375 11,197 46,812 550 313 938

73 1,211 67 75 37,118 887 205

165 92 64 62 849 19,653 242

53 24 220 30 53 50 45,264

165 52 52 44 62 120 53

1 ,461 223 436 341 321 397 1,083

136 37 146 48 58 46 127

254 363 225 192 180 213 185

2,769 2,445 2,547 2,225 2,605 3,267 1,593

515 324 362 310 385 384 349

318 94 122 81 125 162 49

472 423 291 391 456 517 333

5 ,339 6,197 4, 893 5,485 4,503 5,237 2,907

1 ,290 1,194 1,106 1,157 1,263 1,428 823

234 222 216 298 217 198 147

894 860 1,045 1, C89 526 700 385

7,933 2,3 36 3,056 2,014 3,131 4,040 1,231

33 37 70 10 2 43 102 118

337 286 265 24C 305 340 168

298 145 184 156 170 177 78

351 328 338 320 346 395 274

955 609 758 77C 737 785 387

366 331 256 308 351 400 243

76,978 85,951 76,908 81,953 81,752 67,003 73,870

4="

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
TABLE A-3 TOTAL EMPLOYMENT (PRIMARY AND INDIRECT)^ PER BILLION DOLLARS OF DELIVERY TO FINAL DEMAND, 1970^--Continued

(Producers' value,2/ 1958 prices)

Industry number and title

Other

transportation

equipment

Scientific

and controlling

instruments

Optical,

ophthalmic and

photographic

equipment

Miscellaneous

manufacturing

Transportation and

warehousing

Communications;

except

broadcasting

Radio and

television

broadcasting

Electric,

M *.

water,

and

sanitary

services

Wholesale

and

retail

trade

Finance

and

insurance

61 62 63 64 65 66 67 68 69 70

1. Livestock and livestock products...................... 233 383 213 339 201 85 302 120 359 276

2. Other agricultural products........................... 359 553 261 700 308 105 343 143 408 356

3. Forestry and fishery products......................... 235 46 51 231 27 14 24 23 28 21

4. Agricultural, forestry and fishery services........... 60 68 40 85 39 14 56 23 241 41

5. Iron and ferroalloy ores mining....................... 160 51 26 48 10 3 4 9 5 3

6. Nonferrous metal ores mining.......... ................ 163 202 127 185 21 16 13 20 9 6

7. Coal mining............................................ 257 100 140 126 65 24 33 1,325 64 49

8. Crude petroleum and natural gas....................... 69 41 55 60 166 18 24 4S3 53 35

9. Stone and clay mining and quarrying................... 98 55 110 63 43 19 18 46 26 18

10. Chemical and fertilizer mineral mining................ 22 17 58 35 8 3 4 7 5 4

11.

12.

New construction.......................................

Maintenance and repair construction................... 597 477 457 721 2,953 1,803 1,117 3,675 1,044 1,092

13. Ordnance and accessories.............................. 3 151 11 3 2 4 7 1 1 1

14. Food and kindred products...... ....................... 208 378 203 274 169 72 233 1C6 328 204

15. Tobacco manufactures.................................. 5 8 4 6 2 2 7 2 5 5

16. Broad and narrow fabrics, yarn and thread mills....... 174 567 133 1 ,155 76 39 101 31 65 81

17. Miscellaneous textile goods and floor coverings....... 69 111 48 289 46 20 54 13 27 47

18. Apparel....... ........................................ 139 259 97 176 29 10 22 15 56 19

19. Miscellaneous fabricated textile products............. 55 55 36 105 42 34 1C7 11 40 87

20. Lumber and wood products, except containers........... 2,161 318 367 1,822 196 108 157 188 195 147

21. Wooden containers..................................... 28 33 17 43 34 3 7 6 56 6

22. Household furniture.................................... 412 94 21 39 10 32 60 5 14 4

23. Other furniture and fixtures.......................... 251 215 8 58 8 3 4 5 10 4

24. Paper and allied products, except containers.......... 394 613 1,494 1 ,687 221 221 473 183 446 555

25. Paperboard containers and boxes....................... 187 470 432 1,598 70 38 128 42 198 102

26. Printing and publishing............................... 699 769 1 ,295 1 ,271 740 1,305 1,542 555 1,264 2,427

27. Chemicals and selected chemical products.............. 588 448 1,768 992 203 70 112 190 137 107

28. Plastics and synthetic materials...................... 624 348 236 1 ,171 116 41 74 52 63 60

29. Drugs, cleaning, and toilet preparations.............. 60 79 53 116 26 10 17 15 43 29

30. Paints and allied products........................... . 221 44 29 192 72 24 20 5C 24 18

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
31. Petroleum refining and related Industries........... 61 86

32. Rubber and miscellaneous plastics products.......... 843 576

33. Leather tanning and Industrial leather products..... 41 10

34. Footwear and other leather products................. 126 68

35. Glass and glass products............................ 295 575

36. Stone and clay products............................. 359 979

37. Primary iron and steel manufacturing................ 1,660 618

38. Primary nonferrous metals manufacturing............. 1, 800 1,101

39. Metal containers.................................... 83 31

40. Heating, plumbing and structural metal products..... 130 43

41. Stampings, screw machine products and bolts......... 1,243 439

42. Other fabricated metal products..................... 1,054 607

43. Engines and turbines................ .......... . 41 24

44. Farm machinery and equipment...................... ... 38 26

45. Construction, mining and oil field machinery........ 68 42

46. Materials handling machinery and equipment.......... 15 10

47. Metalworking machinery and equipment................ 872 331

48. Special Industry machinery and equipment............ 127 116

49. General industrial machinery and equipment.......... 444 79

50. Machine shop products...................... ..... . 966 164

51. Office, computing and accounting machines........... 537 96

52. Service industry machines........................... 63 15

53. Electric industrial equipment and apparatus......... 1,731 657

54. Household appliances................................ 52 12

55. Electric lighting and wiring equipment.............. 306 258

56. Radio, television and communication equipment....... 887 357

57. Electronic components and accessories............... 1, 990 205

58. Miscellaneous electrical machinery and equipment.... 102 169

59. Motor vehicles and equipment........................ 402 49

60. Aircraft and parts.................................. 398 25

61. Other transportation equipment...................... 121 60

62. Scientific and controlling instruments.............. 41,891 76 8

63. Optical, ophthalmic and photographic equipment...... 2 83 41,918

64. Miscellaneous manufacturing......................... 404 208

65. Transportation and warehousing...................... 2,297 2,162

66. Communications; except broadcasting................. 396 357

67. Radio and television broadcasting................... 100 213

68. Electric, gas, water and sanitary services.......... 319 315

69. Wholesale and retail trade.......................... 5,276 4,269

70. 1,215 1,269

71. Real estate and rental.............................. 224 241

72. Hotels; personal and repair services, except auto.... 1,096 74 8

73. Business services................................... 2,180 2,490 5,324

74. Research and development............................ 27 144

75. Automobile repair and services...................... 264 2 93

76. Amusements.......................................... 173 216

77. Medical, educational and nonprofit organizations.... 329 285

78. Federal Government enterprises...................... 547 742

79. State and local government enterprises.............. 268 259

80. Gross imports of goods and services.................

81. Business travel, entertainment and gifts............

82. Office supplies.....................................

TOTAL....... .................................... . 81,410 75,348

See footnotes at end of table,

93 300 25

1 ,937 514 98

269 6 2

651 12 9

338 70 31

279 132 67

1 ,511 310 101

1 ,710 178 149

41 20 5

81 126 64

818 106 58

982 201 69

22 81 6

35 15 8

37 23 7

12 25 2

183 89 25

85 15 8

135 75 15

355 117 22

140 31 25

22 11 5

350 109 51

80 13 7

221 59 33

22 7 84 824 1,

225 90 322

49 125 27

79 172 15

39 190 9

139 453 32

122 72 20

41 20 20

46,857 144 116

2,650 52,493 516 1,

456 556 33,552 1,

129 83 68 38,

408 271 176

6,355 3,140 931 1:

1,681 2,344 700 1

282 386 178

931 289 217

3,218 2,052 1,704 4,

37 10 4

431 2,072 215

172 193 112 24,

343 247 183

7 04 502 633

338 1,460 139

89,890 75,989 45,745 85

106 73 53

141 23C 216

2 5 3

8 34 20

32 91 27

199 119 53

298 144 82

131 75 50

11 18 11

140 82 42

63 73 31

438 115 61

17 16 12

11 27 18

74 23 9

12 9 3

52 39 21

15 26 14

56 40 16

4C 67 28

4C 72 63

8 20 9

88 46 24

11 18 8

47 33 17

42 87 48

35 54 32

16 40 16

39 99 32

11 24 9

36 25 41

19 44 18

16 52 40

86 155 181

2,096 1,149 1,495

246 579 918

70 179 175

16,876 515 224

2,044 116,010 1,656

1,126 1,897 82,724

225 523 864

265 902 598

1,733 4,460 4,362

6 5 5

325 925 517

eo 315 230

229 244 1,054

2,490 1,538 2,054

8,444 544 386

46,150 137,074 104,377

33

160

8

64

50

6 6

131

112

11

45

99

90

12

19

10

3

39

14

21

33

59

11

78

11

44

530

547

12

20

17

21

35

82

532

111

744

862

212

948

630

586

726

419

7

250

219

28C

501

186

, 764

•6"

VO

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
TABLE A-3. TOTAL EMPLOYMENT (PRIMARY AND INDIRECT)^ PER BILLION DOLLARS OF DELIVERY TO FINAL DEMAND, 1970^/--Continued

(Producer*1 value,!/ 1958 price*)

Industry number and title

Real

estate

and

rental

Hotel*;

personal

and

repair

service*,

except

auto

Business

service*

Research

and

development

Automobile

repair

and

servlcas

Aanisements

Medical,

educational

and nonprofit

organisations

Federal

Government

enterprises

State

and

local

government

enterprises

Business

travel,

entertainment,

and

gifts

Office

supplies

71 72 73 74 75 76 77 78 7* 81 * 82

1. Livestock and livestock products.................... 951 284 263 303 193 415 453 1,493 108 6,662 371

2. Other agricultural product*.......................... 1,747 474 317 345 277 387 485 1,145 151 5, 944 558

3. Forestry and fishery product*........................ 26 41 46 30 27 22 30 41 48 257 273

4. Agricultural, forestry and fishery services.......... 166 56 43 43 49 133 58 143 38 681 75

5. Iron and ferroalloy ores mining...................... 7 10 8 6 36 4 fc 11 13 13 20

6. Nonferrou* metal ores mining......................... 14 27 19 10 59 10 13 10 26 24 55

7. Coal mining......................................... 38 77 110 30 160 36 57 454 715 77 159

8. Crude petroleum and natural ga*...................... 53 76 45 20 56 24 42 59 130 108 70

9. Stone and clay mining and quarrying.................. 56 43 28 17 66 23 3C 37 112 52 115

10. Chemical and fertilizer mineral mining............... 6 17 11 10 15 4 5 6 11 17 51

11. New construction......................................

12. Maintenance and repair construction.................. 797 744 342 1,440 1,593 2,187 1,028 13,065 1,738 868

13. Ordnance and accessories............................. 1 3 2 1 2 1 3 1 1 7 3

14. Food and kindred products............................ 125 224 228 293 143 203 420 1,716 87 7,487 334

15. Tobacco manufactures................................. 1 5 5 8 3 6 6 3 2 238 6

16. Broad and narrow fabrics, yarn and thread mills...... 45 960 113 258 266 65 126 55 43 241 426

17. Miscellaneous textile goods and floor coverings...... 14 122 56 173 183 39 52 21 27 59 142

18. Apparel............................................... 41 612 41 90 64 18 145 18 35 198 81

19. Miscellaneous fabricated textile products............ 17 554 76 250 207 74 96 51 14 141 93

20. Lumber and wood product*, except container*.......... 210 265 370 188 202 149 187 158 430 273 2,461

21. Wooden container*..................................... 13 16 11 9 17 7 5 21 8 79 34

22. Household furniture.................................. 6 69 12 10 16 4 8 4 6 31 15

23. Other furniture and fixtures......................... 7 24 9 6 10 5 8 3 14 9 31

24. Paper and allied products, except containers......... 149 728 1,729 669 344 284 467 534 268 533 12,512

25. Paperboard containers and boxes...................... 44 225 191 221 178 81 158 164 59 3 76 905

26. Printing and publishing.............................. 621 931 13,170 897 150 1,334 1,832 1, 328 86C 989 36,805

27. Chemicals and selected chemical products............. 155 506 280 249 400 103 241 136 306 418 1,189

28. Plastics and synthetic materials..................... 51 225 113 277 3 94 60 87 59 88 160 530

29. Drugs, cleaning, and toilet preparations............. 22 339 47 239 60 20 679 20 30 204 63

30. Paint* and allied product*........................... 66 28 20 15 213 29 33 25 1 54 50 58

150

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31. Petroleum refining and related Industries......... 115 64 31 73 31 54 86 114 187 103

32. Rubber and miscellaneous plastics products........ 526 345 1 ,575 2,000 136 284 211 197 479 1,240

33. Leather tanning and Industrial leather products.... 14 7 7 7 23 4 4 2 36 47

34. Footwear and other leather products............... 94 30 33 24 249 31 30 8 425 130

35. Glass and glass products.......................... 114 46 63 773 32 91 74 73 270 133

36. Stone and clay products........................... 296 88 52 431 77 97 197 373 166 236

37. Primary iron and steel manufacturing.............. 286 223 162 1,198 114 161 172 42 5 409 538

38. Primary nonferrous metals manufacturing........... 215 1 56 80 508 87 10 2 78 216 198 444

39. Metal containers..... ............................. 27 14 20 26 10 39 55 18 233 32

40. Heating, plumbing and structural metal products.... 55 42 43 93 71 81 45 435 87 55

41. Stampings, screw machine products and bolts....... 167 103 60 544 42 106 67 85 191 245

42. Other fabricated metal products................... 279 149 102 1,138 66 106 139 343 2 54 647

43. Engines and turbines.............................. 14 122 19 41 11 11 21 12 42 17

44. Farm machinery and equipment...................... 17 225 18 30 18 16 15 11 43 23

45. Construction, mining and oil field machinery...... 17 48 11 38 10 12 27 53 21 29

46. Materials handling machinery and equipment........ 5 5 5 12 3 4 9 13 14 11

47. Metalworking machinery and equipment.............. 66 98 116 273 22 35 40 48 85 109

48. Special Industry machinery and equipment.......... 37 54 21 39 11 21 13 18 27 179

49. General industrial machinery and equipment........ 48 61 33 151 17 27 30 52 63 82

50. Machine shop products............................. 73 75 42 1,551 24 43 74 66 97 126

51. Office, computing and accounting machines......... 54 74 9 45 47 55 54 28 27 45 256

52. Service industry machines......................... 106 100 81 24 10 1C 6 15 28 14

53. Electric industrial equipment and apparatus....... 160 90 56 166 33 6C 40 90 115 132

54. Household appliances.............................. 32 6 18 17 16 11 13 7 30 171 22

55. Electric lighting and wiring equipment............ 83 38 21 337 24 31 30 S8 65 94

56. Radio, television and communication equipment..... 132 177 40 134 41 84 36 45 431 104

57. Electronic components and accessories............. 1,083 131 30 99 30 73 31 32 326 93

58. Miscellaneous electrical machinery and equipment... 38 31 10 755 10 34 45 27 72 27

59. Motor vehicles and equipment...................... 67 54 21 3,198 15 33 129 82 109 45

60. Aircraft and parts......................... ...... 15 22 12 23 7 14 40 10 89 41

61. Other transportation equipment.................... 62 62 509 99 28 61 96 29 2 07 59

62. Scientific and controlling Instruments............ 374 40 27 203 20 6 36 24 32 167 64

63. Optical, ophthalmic and photographic equipment.... 407 405 34 33 267 172 22 20 161 495

64. Miscellaneous manufacturing................ ...... 1,137 700 531 133 1,005 186 108 131 582 7,533

65. Transportation and warehousing.................... 1,496 1,634 1 ,359 1,827 1,096 1,296 10,307 1,668 22,227 3,044

66. Communications; except broadcasting............... 402 1,369 293 521 440 486 305 335 451 621

67. Radio and television broadcasting................. 134 2,552 144 130 173 126 8C 74 120 162

68. Electric, gas, water and sanitary services........ 566 3 92 107 643 277 485 502 1,716 353 561

69. Wholesale and retail trade........................ 4,285 2,728 2,387 7,510 1,936 2,356 2,413 2,462 7,409 4,393

70. Finance and Insurance............................. 2,068 1,838 1,223 3,052 2,909 1, 583 88C 1,290 1,950 1,62 6

71. Real estate and rental............................ 514 497 262 431 608 652 219 226 379 366

72. Hotels; personal and repair services, except auto.. ... 771 152,615 1,333 847 475 614 1,356 365 465 21,036 954

73. Business services................................. 3, 337 63,791 3,602 3,229 4, 299 3, 181 2,001 1,856 2,996 4,032

74. Research and development.......................... 15 12 80,885 28 4 165 35 6 17 34

75. Automobile repair and services.................... 1,057 654 150 70,534 153 360 1,284 277 1,300 410

76. Amusements.................... ................... 163 1,832 1 ,348 152 137,245 630 117 83 2,398 203

77. Medical, educational and nonprofit organizations... 280 184 246 3 32 284 146,361 130 113 1,171 342

78. Federal Government enterprises.................... 533 3,465 324 637 493 475 126,281 545 567 1,067

79. State and local government enterprises............ 459 303 117 5 84 227 353 543 55,646 797 440

80. Gross imports of goods and services...............

81. Business travel, entertainment and gifts..........

82. Office supplies...................................

TOTAL........................................... i 82;176 105,259 102,231 110,382 158,921 170,611 156*233 86,869 96,130 89,966

1/ Primary mnployment ia employment required in the induatry producing the product or aervlce.

Thia lncludea not only the employment initially required by thia Induatry but any indirect employment effect from ita aupportlng induatriea requiramanta. Indirect maployment covera employment in

each of the aupportlng induatriea. Employment covera wage and salary amployeaa, aelf-employed and

unpaid family workere.

Employment ia not generated by the following induatriea becauae they do not purchase goods and

services from other industries: Gross imports of goods and services (80); Scrap, used and secondhand goods (83); Rest of the world (85); Household (86); and Inventory valuation adjustment (87).

There is no eaiployment in Business travel, entertainment and gifts (81); and Office supplies (82)

which are duemy sectors and serve in an input-output framework as a central distributing mechanism

for itama produced by various industries but with a similar distribution pattern.

U The figures in each column show total amployment directly and indirectly attributable to

$1 billion of delivery to final demand by the Industry named at the top. Employment shown does

not Include any multiplier effects from responding of income generated. 2/ Valuation of final demand is at the site of production and excludes cost of transporting

and handling necessary to bring the item to the final user.

151

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152

Table A-4. Wage and Salary Employment, by ISP Industry, Selected Years and Projected 1970

(In thousands)

Industry number and title

Sele cted years Projected 1970

1958 1962 1963 1964 1965

3 percent

unemployment

Basic

model

4 percent unemployment

Basic

model

High

durables

High

services

59,762 63,398 64,208 65.600 67,621 75,823 74,673 74,673 74,673

1,2 Agriculture— ^...................................... 5,844 5,190 4,946 4,761 4,585 4,080 4,080 4,080 4,080

3 Forestry and fishery products..................... 61 61 63 66 68 69 68 69 67

4 Agricultural,forestry,and fishery services...... 118 121 126 132 136 143 143 142 143

5 Iron and ferroalloy ores mining.,.,..... ........ 37 27 27 27 28 29 29 30 28

6 Nonferrous metal ores mining...................... 56 55 53 52 55 51 51 52 50

7 Coal mining............................... ........ 215 152 149 148 142 124 122 122 122

8 Crude petroleum and natural gas.................. 328 298 289 289 282 240 238 238 239

9,10 Nonmetallic mining and quarrying................. 115 118 117 117 120 142 140 142 139

11,12 Construction.......................... ............. 2,777 2,902 2,963 3,056 3,211 3,700 3,663 3,753 3,535

13 Ordnance and accessories.......... ............... 145 269 266 247 236 235 235 236 234

14 Food and kindred products......................... 1,773 1,762 1,752 1,746 1,738 1,693 1,683 1,664 1,673

IS Tobacco manufactures.............................. 95 90 89 89 84 81 80 79 80

16 Broad and narrow fabrics,yarn and thread mills... 608 578 568 570 578 564 557 560 557

17 Miscellaneous textile goods and floor coverings.. 104 104 104 106 110 100 98 103 98

18 Apparel............................................. 1,256 1,337 1,346 1,363 1,419 1,514 1,494 1,487 1,495

19 Miscellaneous fabricated textile products........ 126 146 150 154 161 178 175 177 176

20,21 Lumber and wood products................. ........ 615 590 593 603 606 578 571 583 558

22 Household furniture............................... 260 275 279 293 311 360 356 384 354

23 Other furniture and fixtures...................... 100 110 110 113 118 151 149 158 144

24 Paper and allied products,except containers..... 399 428 429 431 435 496 490 493 489

25 Paperboard containers and boxes.................. 165 187 190 194 202 229 226 229 226

26 Printing and publishing................. ......... 873 926 931 950 977 1,128 1,114 1,117 1,116

27 Chemicals and selected chemical products......... 401 414 408 409 419 425 421 424 419

28 Plastics and synthetic materials.... ............. 143 165 175 183 199 224 221 226 219

29 D r u g s ,c l e a n i n g ,and toilet p r e p a r a t i o n s............ 189 207 219 221 219 237 233 231 236

30 Paints and allied products....................... 61 63 63 64 65 65 64 65 59

31 Petroleum refining and related industries........ 224 195 189 183 178 167 164 164 165

32 Rubber and miscellaneous plastics products...... 344 408 418 434 464 503 497 512 494

33 Leather tanning and industrial leather products.. 41 36 34 35 35 33 32 33 32

34 Footwear and other leather products......... 318 325 315 314 319 329 323 323 323

35 Glass and glass products.......... ............... 142 158 160 162 167 180 177 182 177

36 Stone and clay products........................... 421 435 441 450 454 477 473 483 462

37 Primary iron and steel manufacturing......... 846 840 844 898 934 939 930 965 909

38 Primary nonferrous metals manufacturing.......... 307 326 329 333 362 388 385 398 378

39 Metal containers................................... 70 70 72 73 73 76 75 75 75

40 Heating.plumbing,and structural metal products... 421 407 416 435 456 512 509 524 495

41 Stampings.screw machine products,and bolts...... 249 278 283 288 313 348 345 360 339

42 Other fabricated metal products....... .......... 336 373 379 392 419 470 465 481 458

43 Engines and turbines......................... . 90 84 85 87 90 90 89 93 88

44 Farm machinery and equipment...................... 113 112 120 126 135 146 144 151 138

45 Construction,mining,and oil field machinery..... 145 149 152 163 172 203 201 209 194

See footnotes at end of table

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
153

Table A-4. Wage and Salary Employment, by ISP Industry and Selected Years and Projected 1970--Continued

(In thousands)

Industry number and title

Selected years Projected 1970

1958 1962 1963 1964 1965

3 percent

unemployment

4 percent unemployment

Basic

model

High

durables

High

services

Basic

model

46 Materials handling machinery and equipment........ 61 62 66 72 77 80 79 83 78

47 Metalworking machinery and equipment.............. 231 259 267 281 299 336 333 346 323

48 Special industry machinery and equipment.......... 161 171 172 181 190 217 214 225 206

49 General industrial machinery and equipment........ 204 229 234 243 258 277 274 286 265

50 Machine-shop products.............................. 136 167 169 172 184 211 209 215 208

51 Office,computing,and accounting machines.......... 133 159 163 175 197 238 234 263 230

52 Service industry machines.......................... 90 101 102 106 111 110 109 115 105

53 Electrical industrial equipment and apparatus.... 304 350 339 340 365 395 392 410 378

54 Household appliances............................... 148 150 156 161 167 182 179 192 179

55 Electric lighting and wiring equipment............ 121 143 150 156 167 191 188 195 185

56 Radio,television,and communication equipment..... 400 555 549 532 568 530 523 548 516

57 Electronic components and accessories............. 179 266 262 265 304 325 322 333 318

58 Miscellaneous electrical machinery and equipment.. 97 103 99 94 101 113 112 117 112

59 Motor vehicles and equipment....................... 603 692 741 755 850 788 777 825 762

60 Aircraft and parts................. ................ 784 634 639 604 617 550 550 546 545

61 Other transportation equipment.................... 217 217 229 246 272 322 318 334 309

62 Scientific and controlling instruments............ 221 246 250 250 258 277 274 281 271

63 Optical.ophthalmic,and photographic equipment.... 103 112 115 119 127 140 138 142 138

64 Miscellaneous manufacturing........................ 369 390 387 398 424 461 455 469 453

65 Transportation and warehousing.................... 2,506 2,472 2,470 2,486 2,530 2,600 2,573 2,580 2,563

66 Communications;except broadcasting..... .......... 773 729 725 745 773 740 730 716 733

67 Radio and television broadcasting................. 87 95 99 103 108 121 119 119 119

68 Electric,gas,water,and sanitary services.......... 610 610 610 614 620 645 638 626 645

69 Wholesale and retail trade......................... 10,750 11,566 11,778 12,132 12,588 14,195 14,037 14,237 13,898

70 Finance and insurance.............................. 2,013 2,270 2,334 2,406 2,468 2,864 2,828 2,704 2,833

71 Real estate and rental........... 492 518 543 558 574 650 631 597 632

72 Hotels{personal and repair services,except auto... 1,672 1,787 1,804 1,878 1,951 2,168 2,119 2,011 2,121

73 74 Business services and research and development.... 1,127 1,532 1,597 1,664 1,730 2,258 2,233 2,230 2,226

75 Automobile repair and services.................... 257 321 288 302 314 360 354 339 354

76 Amusements.... ..................................... 542 583 591 615 639 750 741 698 744

77 Medical.educational and nonprofit organizations... 3,051 3,554 3,757 3,912 4,065 5,349 5,268 4,908 5,600

78 Government enterprises, Federal...... ............ See NOTE.

79 Government enterprises, State and local.......... See NOTE.

84 Government, total................................... 7,839 8,890 9,225 9,595 10,046 12,683 12,262 12,236 12,411

Federal........................................... 2,191 2,340 2,358 2,348 2,379 2,524 2,510 2,497 2,510

State and local................................... 5,648 6,550 6,868 7,248 7,667 10,159 9,752 9,739 9,901

86 Private households........................... ...... 2,550 2,694 2,656 2,683 2,604 3,000 2,950 2,950 2,950

1/ Agricultural employment includes self-employed and unpaid are included in ISP 84.

family workers, as well as wage and salary employees. Because of rounding, sums of individual items may not

NOTE: ISP=interindustry sales and purchases. ISP 78 and 79 equal totals.

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Federal Reserve Bank of St. Louis
154

Table A-5. Wage and Salary Employment, by ISP Industry, Selected Years and Projected 1970

(Percent distribution)

Industry number and title

Selected years Projected 1970

1958 1962 1963 1964 1965

3 percent

unemployment

4 percent unemployment

Basic

model

High

durables

High

services

Basic

model

100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

1,2 Agriculture— ^................................... 9.78 8.19 7.70 7.26 6.78 5.38 5.46 5.46 5.46

3 Forestry and fishery products...................... .10 .10 .10 .10 .10 .09 .09 .09 .09

4 Agricultural,forestry,and fishery services........ .20 .19 .20 .20 .20 .19 .19 .19 .19

5 Iron and ferroalloy ores mining.................... .06 .04 .04 .04 .04 .04 .04 .04 .04

6 Nonferrous metal ores mining....................... .09 .09 .08 .08 .08 .07 .07 .07 .07

7 Coal mining......................................... .36 .24 .23 .23 .21 .16 .16 .16 .16

8 Crude petroleum and natural gas................... .55 .47 .45 .44 .42 .32 .32 .32 .32

9,10 Nonmetallic mining and quarrying.................. .19 .19 .18 .18 .18 .19 .19 .19 .19

11,12 Construction........................................ 4.65 4.58 4.61 4.66 4.75 4.88 4.91 5.03 4.73

13 Ordnance and accessories........... ................ .24 .42 .41 .38 .35 .31 .31 .32 .31

14 Food and kindred products.......................... 2.97 2.78 2.73 2.66 2.57 2.23 2.25 2.23 2.24

15 Tobacco manufactures................................ .16 .14 .14 .14 .12 .11 .11 .11 .11

16 Broad and narrow fabrics,yarn and thread mills.... 1.02 .91 .88 .87 .85 .74 .75 .75 .75

17 Miscellaneous textile goods and floor coverings... .17 .16 .16 .16 .16 .13 .13 .14 .13

18 Apparel.............................................. 2.10 2.11 2.10 2.08 2.10 2.00 2.00 1.99 2.00

19 Miscellaneous fabricated textile products......... .21 .23 .23 .23 .24 .23 .23 .24 .24

20,21 Lumber and wood products........................... 1.03 .93 .92 .92 .90 .76 .76 .78 .75

22 Household furniture.... ................. .......... .44 .43 .43 .45 .46 .47 .48 .51 .47

23 Other furniture and fixtures...................... .17 .17 .17 .17 .17 .20 .20 .21 .19

24 Paper and allied products.except containers...... .67 .68 .67 .66 .64 .65 .66 .66 .65

25 Paperboard containers and boxes...... ............ .28 .30 .30 .30 .30 .30 .30 .31 .30

26 Printing and publishing....................... . 1.46 1.46 1.45 1.45 1.44 1.49 1.49 1.50 1.49

27 Chemicals and selected chemical products..... . .67 .65 .64 .62 .62 .56 .56 .57 .56

28 Plastics and synthetic materials.................. .24 .26 .27 .28 .29 .30 .30 .30 .29

29 Drugs,cleaning,and toilet preparations............ .32 .33 .34 .34 .32 .31 .31 .31 .32

30 Paints and allied products......................... .10 .10 .10 .10 .10 .09 .09 .09 .08

31 Petroleum refining and related industries......... .37 .31 .29 .28 .26 .22 .22 .22 .22

32 Rubber and miscellaneous plastics products.... . .58 .64 .65 .66 .69 .66 .67 .69 .66

33 Leather tanning and industrial leather products... .07 .06 .05 .05 .05 .04 .04 .04 .04

34 Footwear and other leather products............... .53 .51 .49 .48 .47 .43 .43 .43 .43

35 Glass and glass products.... ...................... .24 .25 .25 .25 .25 .24 .24 .24 .24

36 Stone and clay products......... ......... ........ .70 .69 .69 .69 .67 .63 .63 .65 .62

37 Primary iron and steel manufacturing.......... . 1.42 1.32 1.31 1.37 1.38 1.24 1.25 1.29 1.22

38 Primary nonferrous metals manufacturing........... .51 .51 .51 .51 .54 .51 .52 .53 .51

39 Metal containers............................ . .12 .11 .11 .11 .11 .10 .10 .10 .10

40 Heating,plumbing,and structural metal products.... .70 .64 .65 .66 .67 .68 .68 .70 .66

41 Stampings.screw machine products and bolts........ .42 .44 .44 .44 .46 .46 .46 .48 .45

42 Other fabricated metal products................... .56 .59 .59 .60 .62 .62 .62 .64 .61

43 Engines and turbines........................... . .15 .13 .13 .13 .13 .12 .12 .12 .12

44 Farm machinery and equipment............ .......... .19 .18 .19 .19 .20 .19 .19 .20 .18

45 Construction,mining,and oil field machinery....... .24 .24 .24 .25 .25 .27 .27 .28 .26

See footnotes at end of table.

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155

Table A-5. Wage and Salary Employment, by ISP Industry, Selected Years and Projected 1970— Continued

(Percent distribution)

Industry number and title

Selected years Projected 1970

1958 1962 1963 1964 1965

3 percent

unemployment

4 percent unemployment

Basic

model

High

durables

High

services

Basic

model

46 Materials handling machinery and equipment........ .10 .10 .10 .11 .11 .11 .11 .11 . u

47 Metalworking machinery and equipment.............. .39 .41 .42 .43 .44 .44 .45 .46 .43

48 Special industry machinery and equipment.......... .27 .27 .27 .28 .28 .29 .29 .30 .28

49 General industrial machinery and equipment........ .34 .36 .36 .37 .38 .37 .37 .38 .35

50 Machine-shop products.............................. .23 .26 .26 .26 .27 .28 .28 .29 .28

51 Office,computing,and accounting machines.......... .22 .25 .25 .27 .29 .31 .31 .35 .31

52 Service industry machines.... ...... ............... .15 .16 .16 .16 .16 .15 .15 .15 .14

53 Electric industrial equipment and apparatus...... .51 .55 .53 .52 .54 .52 .52 .55 .51

54 Household appliances............................... .25 .24 .24 .25 .25 .24 .24 .26 .24

55 Electric lighting and wiring equipment............ .20 .23 .23 .24 .25 .25 .25 .26 .25

56 Radio,television,and communication equipment..... .67 .88 .86 .81 .84 .70 .70 .73 .69

57 Electronic components and accessories...... . .30 .42 .41 .40 .45 .43 .43 .45 .43

58 Miscellaneous electrical machinery and equipment.. .16 .16 .15 .14 .15 .15 .15 .16 .15

59 Motor vehicles and equipment.................. . 1.01 1.09 1.15 1.15 1.26 1.04 1.04 1.10 1.02

60 Aircraft and parts............................ 1.31 1.00 1.00 .92 .91 .73 .74 .73 .73

61 Other transportation equipment.................... .36 .34 .36 .38 .40 .42 .43 .45 .41

62 Scientific and controlling equipment.............. .37 .39 .39 .38 .38 .37 .37 .38 .36

63 Optical.ophthalmic,and photographic equipment.... .17 .18 .18 .18 .19 .18 .18 .19 .18

64 Miscellaneous manufacturing....................... .62 .62 .60 .61 .63 .61 .61 .63 .61

65 Transportation and warehousing.................. . 4.19 3.90 3.85 3.79 3.74 3.43 3.45 3.46 3.43

66 Communications;except broadcasting............... . 1.29 1.15 1.13 1.14 1.14 .98 .98 .96 .98

67 Radio and television broadcasting................. .15 .15 .15 .16 .16 .16 .16 .16 .16

68 Electric,gas .water and sanitary services.......... 1.02 .96 .95 .94 .92 .85 .85 .84 .86

69 Wholesale and retail trade..... ........... ....... 17.99 18.24 18.34 18.49 18.61 18.72 18.80 19.07 18.61

70 Finance and insurance........................... 3.37 3.58 3.64 3.67 3.65 3.78 3.79 3.62 3.79

71 Real estate and rental............................. .82 .82 .85 .85 .85 .86 .85 .80 .85

72 Hotelsjpersonal and repair services.except auto... 2.80 2.82 2.81 2.86 2.89 2.86 2.84 2.69 2.84

73, 74 Business services and research and development.... 1.89 2.42 2.49 2.54 2.56 2.98 2.99 2.99 2.98

75 Automobile repair and services............. .43 .51 .45 .46 .46 .47 .47 .45 .47

76 Amusements .91 .92 .92 .94 .94 .99 .99 .93 1.00

77 Medical.educational and nonprofit organizations... 5.11 5.61 5.85 5.96 6.01 7.05 7.05 6.57 7.50

78 Government enterprises, Federal....... . See NOTE.

79 Government enterprises, State and local.......... See TOTE.

84 Government, total........................... ....... 13.12 14.02 14.37 14.63 14.86 16.73 16.42 16.39 16.62

Federal.................................. ........ 3.67 3.69 3.67 3.58 3.52 3.33 3.36 3.34 3.36

State and local.................................. 9.45 10.33 10.70 11.05 11.34 13.40 13.06 13.04 13.26

86 Private households............................ 4.27 4.25 4.14 4.09 3.85 3.96 3.95 3.95 3.95

1/ Agricultural employment includes self-employed and unpaid are included in ISP 84.

family workers, as well as wage and salary employees. Because of rounding, sums of individual items may not

NOTE: ISP=interindustry sales and purchases. ISP 78 and 79 equal totals.

U.S. GOVERNMENT PRINTING OFFICE : 1966 0 -2 3 9 -8 7 7

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Federal Reserve Bank of St. Louis