Internet address:  http://www.bls.gov/flshome.htm                USDL:  01-311
Technical information:  (202) 691-5654             For Release: 10:00 A.M. EDT
Media contact:  (202) 691-5902                     Tuesday, September 25, 2001

INTERNATIONAL COMPARISONS OF HOURLY COMPENSATION COSTS
FOR PRODUCTION WORKERS IN MANUFACTURING, 2000

	Average hourly compensation costs in U.S. dollars for production workers 
in manufacturing in 28 foreign economies declined to 76 percent of the U.S. 
level in 2000 from 80 percent in 1999, according to the Bureau of Labor 
Statistics, U.S. Department of Labor.  Compensation costs relative to the United 
States continued to decline in Canada and throughout Europe in 2000, while 
relative costs rose in Japan, Korea, Mexico, and Taiwan.

	The recent decline of relative compensation costs in 17 European economies 
studied resulted in higher compensation costs in the United States than in 
Europe for the first time since 1989.  In 2000, average costs in the United 
States were 7 percent higher than for Europe, after being 7 percent lower in 
1999.  Costs in Canada continued to decline relative to the United States, down 
to 81 percent in 2000 from 90 percent in 1997, while costs in Japan increased to 
111 percent of those in the United States.  Average costs in the Asian newly 
industrialized economies (NIEs) of Hong Kong, Korea, Singapore, and Taiwan 
remained at approximately one-third of the U.S level. (See table 1.)

Chart 1. Hourly compensation costs in U.S. dollars for
production workers in manufacturing, 1975-2000

PRINTED COPY CONTAINS CHART AT THIS POINT.

Compensation costs expressed in U.S. dollars

	In the United States, hourly compensation costs for production workers 
were $19.86 in 2000, a 3.9 percent increase from the 1999 level.  Hourly 
compensation costs increased 1.9 percent in the combined 28 foreign economies 
during 2000, following a 4.9 percent increase in 1999.  In Europe, costs 
declined 8.8 percent in 2000, whereas they increased 7.7 percent in the Asian 
NIEs during the same time period.

	Changes over time in compensation costs in U.S. dollars are affected by 
the underlying national wage and benefit trends measured in national currencies, 
as well as frequent and sometimes sharp changes in currency exchange rates.  A 
country's compensation costs expressed in U.S. dollars are calculated by 
dividing compensation costs in national currency by the exchange rate (expressed 
as national currency units per U.S. dollar).

BOX: A NOTE ON THE MEASURES

  The hourly compensation measures in this news release are based on statistics 
available to BLS as of June 2001.  The 2000 compensation statistics are 
preliminary measures; for some of the foreign countries, they are based on less 
than full-year data.  These measures are prepared specifically for international 
comparisons of employer labor costs in manufacturing.  The methods used, as well 
as the results, differ somewhat from those of other BLS series on U.S. 
compensation costs.

  Total compensation costs include pay for time worked, other direct pay 
(including holiday and vacation pay, bonuses, other direct payments, and the 
cost of pay in kind), employer expenditures for legally required insurance 
programs and contractual and private benefit plans, and, for some countries, 
other labor taxes.

  Labor cost measures.  The compensation measures are computed in national 
currency units and are converted into U.S. dollars at prevailing commercial 
market currency exchange rates.  They are appropriate measures for comparing 
levels of employer labor costs, but they do not indicate relative living 
standards of workers or the purchasing power of their incomes.  Prices of goods 
and services vary greatly among countries, and commercial market exchange rates 
do not reliably indicate relative differences in prices.

  Data limitations.  Hourly compensation is partly estimated, and data are 
subject to revision in the next update.  The comparative level figures are 
averages for all manufacturing industries and are not necessarily representative 
of all component industries.

  See the Technical Notes for further information regarding definitions, 
sources, and computation methods and a description of the trade-weighted 
measures for economic groups.

END OF BOX (A NOTE ON THE MEASURES)


Table A. Hourly compensation costs, in national currency and in U.S. dollars, 
for production workers in manufacturing
and exchange rates (U.S. dollars per national currency unit)

Percent change, 1999-2000

                         Hourly              Hourly
Country               compensation         compensation
or area                 national  Exchange    U.S.
                        currency   Rates     dollars
        
North America        
  United States            3.9        -       3.9
  Canada                   3.3       .0       3.3
  Mexico                  16.6      1.0      17.7
               
Asia and Oceania
  Australia                 .4     -9.9      -9.6
  Hong Kong SAR 1          2.0      -.4       1.7
  Israel                   6.4      1.5       8.1
  Japan                    -.2      5.5       5.3
  Korea                    9.6      5.2      15.3
  New Zealand              3.1    -13.7     -11.1
  Singapore                6.0     -1.7       4.1
  Sri Lanka                  -        -         -
  Taiwan                   2.8      3.4       6.4
           
Europe
  Austria                  2.8    -13.3     -10.9
  Belgium                  1.9    -13.3     -11.7
  Denmark                  3.1    -13.7     -11.0
  Finland                  5.5    -13.3      -8.6
  France                   5.1    -13.3      -8.9
  Germany, former West     3.5    -13.4     -10.3
  Germany 2                3.5    -13.4     -10.3
  Greece                     -        -         -
  Ireland                  6.1    -13.3      -8.2
  Italy                    1.8    -13.3     -11.7
  Luxembourg               3.3    -13.3     -10.5
  Netherlands              3.3    -13.3     -10.4
  Norway                   4.1    -11.4      -7.8
  Portugal                 2.5    -13.4     -11.2
  Spain                    3.4    -13.3     -10.4
  Sweden                   3.4     -9.8      -6.8
  Switzerland              1.3    -10.9      -9.8
  United Kingdom           2.8     -6.3      -3.6
           
Trade-weighted measures 3,4   
  All 28 foreign economies 4.1     -2.1       1.9
  OECD 5                   4.2     -2.6       1.5
     less Mexico, Korea 6  2.3     -3.4      -1.3
  Europe                   3.3    -11.7      -8.8
  Asian NIEs               5.2      2.3       7.7


1  Hong Kong Special Administrative Region of China.
2  Referred to as unified Germany in prior news releases.
3  Because data for Germany (referred to as unified Germany in prior news
   releases) are not available before 1993, data for the former West Germany
   only are included in the trade-weighted measures.
4  The 1999-2000 percent changes for the trade weighted measures are based
   upon the changes for the countries or areas for which 2000 data are 
   available.
5  OECD refers to the Organization for Economic Cooperation and Development.
6  Mexico joined the OECD in 1994 and Korea joined in 1996.


	In Mexico, compensation costs in U.S. dollars increased by 17.7 percent, 
the largest percent increase among the 28 foreign economies studied.  As in 
1999, the Mexican peso remained stable relative to the U.S. dollar, and a sharp 
upward trend in Mexican compensation costs in pesos led to the large increase.  
Despite increases in the past two years, Mexican compensation costs were only 12 
percent of the U.S. level in 2000. (See table A and chart 2.) 

	Continued weakening of the euro was primarily responsible for the lowest 
compensation costs in Europe since 1993.  Average costs in Europe were $18.50 in 
2000, dropping from $20.36 in 1999.  Compensation costs in all the European 
countries fell in 2000, with the largest declines in Belgium and Italy (11.7 
percent each), while costs in the United Kingdom, the European country with the 
strongest currency relative to the U.S. dollar in 2000, dropped only 3.6 
percent.

	The former West Germany continued to have the highest compensation costs 
of the 28 foreign economies at $24.01, 21 percent higher than those in the 
United States.  However, that gap has been narrowing dramatically in recent 
years; the compensation costs in the former West Germany were 84 percent higher 
than in the United States in 1995.  In 1999, there were nine European countries 
whose hourly compensation costs were more than 10 percent higher than the United 
States; following steep declines in Europe in 2000, only Germany, the former 
West Germany and Norway had costs 10 percent or more above the U.S. level.  (See 
chart 2.)

	In contrast to Europe, compensation costs in the Asian NIEs rose strongly 
in 2000 for the second consecutive year, increasing 7.7 percent.  Compensation 
costs in Korea in 2000 rose faster than in any other foreign economy studied 
except Mexico, increasing 15.3 percent, following a 24.3 percent increase in 
1999.  Costs also increased in the remaining NIEs.  Japanese costs increased 5.3 
percent in 2000 due to the strength of the yen, resulting in costs 11 percent 
higher than in the United States.

Chart 2. Indexes of hourly compensation costs in U.S. dollars for
         for production workers in manufacturing, 1999

PRINTED COPY CONTAINS CHART AT THIS POINT.


Compensation costs expressed in national currencies

	For U.S. competitors, compensation costs in national currency grew at a 
higher rate in 2000 than in 1999.  The trade-weighted average cost increased 4.1 
percent for all 28 foreign economies in 2000 compared with 2.8 percent in 1999, 
returning to the same rate of growth as in 1998.  Excluding Mexico and Israel, 
both of which historically have had high rates of growth, the trade-weighted 
increase in compensation costs for the foreign economies was 2.8 percent in 
2000. Although the 16.6 percent rise in Mexican costs was the highest increase 
of all countries in 2000, it was the lowest compensation increase in that 
country in five years.

	Compensation costs in Asia increased for every economy, with the exception 
of Japan. Costs grew fastest in Korea at 9.6 percent.  In Singapore, costs 
increased 6.0 percent, partially offsetting a 7.0 percent decline in 1999 that 
was due to a sharp reduction in employer contribution rates to the national 
pension plan. Compensation costs in Japan decreased by 0.2 percent, the second 
consecutive year in which costs have declined in that country.

	Compensation costs grew in Europe at a rate of 3.3 percent in 2000, rising 
more than 3 percent for the first time in three years.  Costs increased the most 
in Ireland, Finland, and France, at rates of 6.1, 5.5, and 5.1 percent, 
respectively.  Compensation costs in Belgium, Italy, and Switzerland increased 
by less than 2 percent.

	Following the compensation cost growth rates in all regions in 1999, which 
were the lowest in the 25 years covered by this series, growth rates accelerated 
in 2000 and were pushed up to or above their 1998 levels.  In particular, the 
Asian NIEs saw renewed growth in compensation costs for 2000, with costs rising 
5.2 percent, following an increase of only 1.1 percent in 1999.  The increase in 
Europe was less dramatic, with costs rising 3.3 percent, compared with 2.6 
percent in 1999. Growth in the OECD countries was 4.2 percent in 2000, 
approximately one percentage point higher than in 1999.


Exchange rates

	Appreciation of the dollar against the currencies of most foreign 
countries continued in 2000 and at a greater rate than in 1999.  The trade-
weighted value of the currencies of the 28 foreign economies declined 2.1 
percent against the dollar in 2000.  However, currencies in Mexico, Japan, 
Korea, Taiwan, and Israel increased in value.  For Japan, Korea, and Taiwan, 
2000 marked the second consecutive year of currency appreciation against the 
dollar.  

	The currency values of the three largest U.S. trading partners in the 
study (as measured by trade weights) either improved or showed no significant 
change.  The Japanese yen (the currency with the second largest trade weight) 
appreciated 5.5 percent, while the Mexican peso (with the third largest trade 
weight) increased in value by 1 percent.  The largest trading partner in the 
study, Canada, saw the value of its currency remain essentially the same. 

	The currencies of the Asian NIEs appreciated 2.3 percent on average 
against the dollar in 2000, the second consecutive year of appreciation 
following a 16.3 percent depreciation in 1998.  The Korean won appreciated 5.2 
percent, and the New Taiwan dollar appreciated 3.4 percent.  Currencies in Hong 
Kong and Singapore declined in value, but only slightly.

BOX: A NOTE ON EUROPEAN EXCHANGE RATES FOR 1999 AND 2000

	On January 1, 1999, several European countries joined the European 
Monetary Union (EMU): Austria, Belgium, Finland, France, Germany, Ireland, 
Italy, Luxembourg, the Netherlands, Portugal, and Spain.  At the same time, 
currencies of EMU members were established at fixed conversion rates to the 
euro, the official currency of the EMU.  Exchange rates between the national 
currencies of EMU countries and the U.S. dollar are no longer reported; only the 
exchange rate between the euro and the U.S. dollar is available.

	In this news release, exchange rates for 1999 and 2000 in national 
currencies are calculated for the EMU countries by taking the number of euros 
per U.S. dollar and then converting euros into national currencies at the fixed 
conversion rates.  The following are the fixed conversion rates between national 
currencies and the euro for the EMU countries in this release:

1 euro    = 13.7603  Austrian Schillings
          = 40.3399  Belgian Francs
          = 5.94573  Finnish Markkas
          = 6.55957  French Francs
          = 1.95583  German Marks
          = .787564  Irish Pounds
          = 1936.27  Italian Lire
          = 40.3399  Luxembourg Francs
          = 2.20371  Netherlands Guilders
          = 200.482  Portuguese Escudos
          = 166.386  Spanish Pesetas

In 1999, 1 euro was equal to 1.0653 U.S. dollars.  In 2000, 1 euro was equal to 
0.9232 U.S. dollars.

END OF BOX (A NOTE ON EUROPEAN EXCHANGE RATES FOR 1999 AND 2000)


	The European currencies continued to depreciate against the U.S. dollar in 
2000, falling a trade-weighted average of 11.7 percent.  As in 1997, 1998, and 
1999, the British pound remained the strongest European currency in 2000, 
declining only 6.3 percent against the dollar.  The currencies pegged to the 
euro declined a little more than 13 percent from 1999 to 2000; the largest 
decline in Europe occurred in Denmark (13.7 percent).

	The movements of the foreign currencies relative to the U.S. dollar in 
2000 had a significant influence on hourly compensation costs measured in U.S. 
dollars.  Hourly compensation costs on a national currency basis in the 28 
foreign economies rose 4.1 percent, but, when adjusted for a 2.1 percent 
depreciation of the foreign currencies against the U.S. dollar, those costs 
increased only 1.9 percent.  The effect that exchange rate changes can have on 
hourly compensation costs is particularly evident when comparing European labor 
costs with those of the Asian NIEs.  On a national currency basis, the increase 
in hourly compensation costs in 2000 was only 2 percentage points higher in the 
Asian NIEs than in Europe.  When costs are adjusted for changes in exchange 
rates in the two regions, however, costs in the Asian NIEs increased 7.7 
percent, while costs in Europe declined 8.8 percent.

Additional data available

	In addition to the compensation cost measures covered in this news 
release, data are available for comparative levels of hourly compensation costs, 
hourly direct pay, pay for time worked, and the structure of compensation in 
manufacturing for all years from 1975 through 2000.

	BLS also computes comparative measures for 39 component manufacturing 
industries.  Data through 1998 are available upon request and via the Internet 
(http://www.bls.gov/flshome.htm).  Data for the component industries are not 
included in this release; in general, the data limitations for them are greater 
than for total manufacturing.

	For further information, contact the Office of Productivity and 
Technology, Bureau of Labor Statistics, 2 Massachusetts Avenue, NE, Room 2150, 
Washington, DC 20212, or call 
202-691-5654.

	Information in this release will be made available to sensory impaired 
individuals upon request.  Voice phone:  202-691-5200; TDD message referral 
phone:  1-800-877-8339.

	This material is in the public domain and, with appropriate credit, may be 
reproduced without permission.  It may be translated into foreign languages 
without permission, with a separate credit for the translation.


BOX: REVISED MEASURES

The hourly compensation measures are subject to revision in future updates.  In 
this update, revisions of particular note were made for the following countries:

Data for Belgium were revised back to 1993 with the incorporation of 1996 labor 
cost survey data. 

For Germany, data were revised back to 1993 (1975 for the former West Germany) 
to incorporate information available in a new earnings survey begun in October 
1999.  Additional revisions were made back to 1993 with the incorporation of new 
data on pay for time not worked and social insurance contributions.

For Ireland, revisions were made back to 1975 with the incorporation of earnings 
data on a new industrial classification, NACE Rev. 1.

For Luxembourg, revisions were made back to 1995 with the incorporation of new 
earnings data.

BLS recently received 1996 labor cost survey data from the Statistical Office of 
the European Communities (EUROSTAT) and is in the process of reviewing the data 
for incorporation into a future news release.  Because 1996 labor cost survey 
data were available earlier from national statistical offices, data for Germany 
and Ireland were incorporated in prior BLS updates, and data for Belgium were 
incorporated in this update.

END OF BOX (REVISED MEASURES)


Table 1. Indexes of hourly compensation costs in U.S. dollars for production workers
in manufacturing, 29 countries or areas and selected economic groups, selected years, 1975-2000



Country or area          1975   1980   1985   1990   1995   1997   1998   1999   2000


North America
United States .........   100    100    100    100    100    100    100    100    100
Canada ................    94     88     84    107     94     90     84     82     81
Mexico ................    23     22     12     11      9     10     10     11     12

Asia and Oceania
Australia .............    88     86     63     88     89     91     80     82     71
Hong Kong SAR 1 .......    12     15     13     22     28     30     29     29     28
Israel ................    35     38     31     57     61     66     65     62     65
Japan .................    47     56     49     86    139    107     98    109    111
Korea .................     5     10     10     25     42     43     31     37     41
New Zealand ...........    50     53     34     55     58     59     49     48     41
Singapore .............    13     15     19     25     43     45     42     37     37
Sri Lanka .............     4      2      2      2      3      3      3      2     -
Taiwan ................     6     10     12     26     35     32     28     29     30

Europe
Austria ...............    71     90     58    119    147    120    120    114     98
Belgium ...............   101    133     69    129    161    131    131    125    106
Denmark ...............    99    110     63    121    140    121    122    120    103
Finland ...............    73     84     63    141    140    117    117    112     98
France ................    71     91     58    104    116     99     98     94     83
Germany, former West..     99    124     73    146    184    151    148    140    121
Germany 2 .............    -      -      -      -     176    144    141    134    116
Greece ................    27     38     28     45     53     50     48     -      -
Ireland ...............    48     61     46     79     80     76     73     71     63
Italy .................    73     83     59    117     94     96     92     87     74
Luxembourg ............   102    122     60    112    132    103    101     98     84
Netherlands ...........   104    122     67    121    140    114    115    112     96
Norway ................   106    117     80    144    142    130    126    125    111
Portugal ..............    25     21     12     25     31     29     30     28     24
Spain .................    40     60     36     76     75     67     65     63     55
Sweden ................   113    127     74    140    125    122    119    113    101
Switzerland ...........    96    112     74    140    170    132    131    123    107
United Kingdom ........    53     77     48     85     80     84     88     86     80

Trade-weighted measures 3,4
All 28 foreign economies   60     67     52     83     95     84     79     80     76
OECD 5 ................    67     74     57     90    103     90     85     86     82
  less Mexico, Korea 6     76     84     65    104    119    103     98     99     93
Europe ................    80    100     61    116    128    112    111    107     93
Asian NIEs ............     8     12     13     25     37     37     32     33     34


Dash means data not available.
1  Hong Kong Special Administrative Region of China.
2  Referred to as unified Germany in prior news releases.
3  Because data for Germany (referred to as unified Germany in prior news releases)
   are not available before 1993, data for the former West Germany only are included
   in the trade-weighted measures.
4  For description of trade-weighted measures and economic groups,
   see the Technical Notes preceding these tables.
5  Organization for Economic Cooperation and Development.
6  Mexico joined the OECD in 1994, and Korea joined in 1996.

Source:  U.S. Department of Labor, Bureau of Labor Statistics, September 2001.
Table 2. Hourly compensation costs in U.S. dollars for production workers in manufacturing,
29 countries or areas and selected economic groups, selected years, 1975-2000


Country or area          1975   1980   1985   1990   1995   1997   1998   1999   2000


North America
United States ......... $6.36  $9.87 $13.01 $14.91 $17.19 $18.27 $18.59 $19.11 $19.86
Canada ................  5.96   8.67  10.95  15.95  16.10  16.47  15.60  15.65  16.16
Mexico ................  1.47   2.21   1.59   1.58   1.51   1.78   1.84   2.09   2.46

Asia and Oceania
Australia .............  5.62   8.47   8.20  13.07  15.27  16.58  14.92  15.66  14.15
Hong Kong SAR 1 .......   .76   1.51   1.73   3.20   4.82   5.42   5.47   5.44   5.53
Israel ................  2.25   3.79   4.06   8.55  10.54  12.04  12.02  11.91  12.88
Japan .................  3.00   5.52   6.34  12.80  23.82  19.54  18.29  20.89  22.00
Korea .................   .32    .96   1.23   3.71   7.29   7.86   5.67   7.05   8.13
New Zealand ...........  3.15   5.22   4.38   8.17   9.91  10.80   9.01   9.14   8.13
Singapore .............   .84   1.49   2.47   3.78   7.33   8.24   7.77   7.13   7.42
Sri Lanka .............   .28    .22    .28    .35    .48    .46    .47    .46     -
Taiwan ................   .40   1.00   1.50   3.93   5.94   5.91   5.27   5.62   5.98

Europe
Austria ...............  4.51   8.88   7.58  17.75  25.32  21.97  22.21  21.85  19.46
Belgium ...............  6.41  13.11   8.97  19.17  27.62  23.98  24.31  23.92  21.11
Denmark ...............  6.28  10.83   8.13  18.04  24.07  22.03  22.69  22.96  20.44
Finland ...............  4.61   8.24   8.16  21.03  24.10  21.32  21.66  21.33  19.50
France ................  4.52   8.94   7.52  15.49  20.01  17.99  18.28  17.98  16.38
Germany, former West..   6.29  12.21   9.50  21.81  31.58  27.54  27.43  26.76  24.01
Germany 2 .............    -      -      -      -   30.26  26.36  26.28  25.64  22.99
Greece ................  1.69   3.73   3.66   6.76   9.17   9.20   8.91     -      -
Ireland ...............  3.05   6.03   5.99  11.81  13.78  13.83  13.58  13.61  12.50
Italy .................  4.67   8.15   7.63  17.45  16.22  17.57  17.11  16.60  14.66
Luxembourg ............  6.50  12.03   7.81  16.74  22.62  18.74  18.70  18.65  16.69
Netherlands ...........  6.58  12.06   8.75  18.06  24.12  20.82  21.40  21.30  19.08
Norway ................  6.77  11.59  10.37  21.47  24.38  23.72  23.50  23.91  22.05
Portugal ..............  1.58   2.06   1.53   3.77   5.37   5.38   5.48   5.35   4.75
Spain .................  2.53   5.89   4.66  11.38  12.88  12.24  12.14  12.11  10.85
Sweden ................  7.18  12.51   9.66  20.93  21.44  22.22  22.02  21.60  20.14
Switzerland ...........  6.09  11.09   9.66  20.86  29.30  24.19  24.38  23.56  21.24
United Kingdom ........  3.37   7.56   6.27  12.70  13.67  15.42  16.39  16.48  15.88

Trade-weighted measures 3,4
All 28 foreign economies 3.83   6.59   6.74  12.35  16.38  15.30  14.75  15.27  15.16
OECD 5 ................  4.25   7.30   7.39  13.48  17.74  16.46  15.88  16.48  16.31
  less Mexico, Korea 6   4.82   8.30   8.48  15.54  20.39  18.80  18.23  18.83  18.52
Europe ................  5.09   9.90   7.96  17.30  22.03  20.45  20.67  20.36  18.50
Asian NIEs ............   .52   1.17   1.65   3.72   6.41   6.83   5.91   6.29   6.79


Dash means data not available.
1  Hong Kong Special Administrative Region of China.
2  Referred to as unified Germany in prior news releases.
3  Because data for Germany (referred to as unified Germany in prior news releases)
   are not available before 1993, data for the former West Germany only are included
   in the trade-weighted measures.
4  For description of trade-weighted measures and economic groups,
   see the Technical Notes preceding these tables.
5  Organization for Economic Cooperation and Development.
6  Mexico joined the OECD in 1994, and Korea joined in 1996.

Source:  U.S. Department of Labor, Bureau of Labor Statistics, September 2001.
Table 3. Annual percent change in hourly compensation costs in U.S. dollars for production workers
in manufacturing, 29 countries or areas and selected economic groups, selected periods, 1975-2000


Country or area        1975- 1975- 1980- 1985- 1990- 1995-   1998  1999  2000
                        2000  1980  1985  1990  1995  2000

North America
United States .........   4.7   9.2   5.7   2.8   2.9   2.9   1.8   2.8   3.9
Canada ................   4.1   7.8   4.8   7.8    .2    .1  -5.3    .3   3.3
Mexico ................   2.1   8.5  -6.4   -.1   -.9  10.3   3.4  13.6  17.7

Asia and Oceania
Australia .............   3.8   8.5   -.6   9.8   3.2  -1.5 -10.0   5.0  -9.6
Hong Kong SAR 1 .......   8.3  14.7   2.8  13.1   8.5   2.8    .9   -.5   1.7
Israel ................   7.2  11.0   1.4  16.1   4.3   4.1   -.2   -.9   8.1
Japan .................   8.3  13.0   2.8  15.1  13.2  -1.6  -6.4  14.2   5.3
Korea .................  13.8  24.6   5.1  24.7  14.5   2.2 -27.9  24.3  15.3
New Zealand ...........   3.9  10.6  -3.4  13.3   3.9  -3.9 -16.6   1.4 -11.1
Singapore .............   9.1  12.1  10.6   8.9  14.2    .2  -5.7  -8.2   4.1
Sri Lanka .............(2)2.1  -4.7   4.9   4.6   6.5    -    2.2  -2.1    -
Taiwan ................  11.4  20.1   8.4  21.2   8.6    .1 -10.8   6.6   6.4

Europe
Austria ...............   6.0  14.5  -3.1  18.6   7.4  -5.1   1.1  -1.6 -10.9
Belgium ...............   4.9  15.4  -7.3  16.4   7.6  -5.2   1.4  -1.6 -11.7
Denmark ...............   4.8  11.5  -5.6  17.3   5.9  -3.2   3.0   1.2 -11.0
Finland ...............   5.9  12.3   -.2  20.8   2.8  -4.1   1.6  -1.5  -8.6
France ................   5.3  14.6  -3.4  15.5   5.3  -3.9   1.6  -1.6  -8.9
Germany, former West ..   5.5  14.2  -4.9  18.1   7.7  -5.3   -.4  -2.4 -10.3
Germany 3 .............    -     -     -     -     -   -5.3   -.3  -2.4 -10.3
Greece ................(2)7.5  17.2   -.4  13.1   6.3    -   -3.2    -     -
Ireland ...............   5.8  14.6   -.1  14.5   3.1  -1.9  -1.8    .2  -8.2
Italy .................   4.7  11.8  -1.3  18.0  -1.5  -2.0  -2.6  -3.0 -11.7
Luxembourg ............   3.8  13.1  -8.3  16.5   6.2  -5.9   -.2   -.3 -10.5
Netherlands ...........   4.4  12.9  -6.2  15.6   6.0  -4.6   2.8   -.5 -10.4
Norway ................   4.8  11.4  -2.2  15.7   2.6  -2.0   -.9   1.7  -7.8
Portugal ..............   4.5   5.4  -5.8  19.8   7.3  -2.4   1.9  -2.4 -11.2
Spain .................   6.0  18.4  -4.6  19.6   2.5  -3.4   -.8   -.2 -10.4
Sweden ................   4.2  11.7  -5.0  16.7    .5  -1.2   -.9  -1.9  -6.8
Switzerland ...........   5.1  12.7  -2.7  16.6   7.0  -6.2    .8  -3.4  -9.8
United Kingdom ........   6.4  17.5  -3.7  15.2   1.5   3.0   6.3    .5  -3.6

Trade-weighted measures 4,5
All 28 foreign economies  6.2  12.5   1.0  12.8   5.7    .0  -3.9   4.9   1.9
    less Mexico, Israel   6.6  13.0   1.7  14.1   6.4  -1.1  -4.7   4.1    .2
OECD 6 ................   5.7  12.0    .1  12.4   5.1   -.1  -3.6   5.5   1.5
  less Mexico, Korea 7    5.7  11.8    .7  13.3   5.4  -1.5  -3.2   3.4  -1.3
Europe ................   5.4  14.5  -4.1  16.7   4.4  -2.8   1.4  -1.4  -8.8
Asian NIEs ............  11.1  18.9   7.0  18.4  11.3   1.2 -12.6   7.5   7.7


Rates of change based on compound rate method.
Dash means data not available.
1  Hong Kong Special Administrative Region of China.
2  1975-99 for Sri Lanka; 1975-98 for Greece.
3  Referred to as unified Germany in prior news releases.
4  Because data for Germany (referred to as unified Germany in prior news releases)
   are not available before 1993, data for the former West Germany only are included
   in the trade-weighted measures.
5  Trade-weighted percent changes computed as the trade-weighted
   average of the rates of change for the individual countries or areas.
   For description of trade-weighted measures and economic groups,
   see the Technical Notes preceding these tables.
6  Organization for Economic Cooperation and Development.
7  Mexico joined the OECD in 1994, and Korea joined in 1996

Source:  U.S. Department of Labor, Bureau of Labor Statistics, September 2001.
Table 4. Hourly compensation costs in national currency for production workers in manufacturing,
29 countries or areas, selected years, 1975-2000


Country or area          1975   1980   1985   1990   1995   1997   1998    1999    2000


North America
United States .........  6.36   9.87  13.01  14.91  17.19  18.27  18.59   19.11   19.86
Canada ................  6.06  10.13  14.95  18.62  22.10  22.81  23.15   23.26   24.02
Mexico ................    18    51     409   4440   9.69  14.12  16.84   19.98   23.30

Asia and Oceania
Australia .............  4.30   7.43  11.70  16.74  20.62  22.30  23.73   24.26   24.35
Hong Kong SAR 1 ......   3.73   7.50  13.46  24.91  37.30  41.99  42.39   42.20   43.06
Israel ................  1.44  19.42   4.79  17.24  31.73  41.52  45.67   49.32   52.50
Japan .................   889   1245   1512   1856   2238   2367   2396    2375    2371
Korea .................   157    583   1074   2623   5620   7471   7936    8391    9200
New Zealand ...........  2.60   5.37   8.80  13.70  15.10  16.29  16.79   17.26   17.80
Singapore .............  2.00   3.20   5.43   6.85  10.39  12.25  12.99   12.08   12.80
Sri Lanka .............  1.97   3.58   7.58  14.05  24.45  26.86  30.10   32.60      -
Taiwan ................ 15.17  36.13  59.60 105.69 157.30 169.96 176.88  181.72  186.84

Europe
Austria ............... 78.46 114.78 156.75 201.07 255.24 268.20 274.97  282.31  290.08
Belgium ...............235.10 382.88 532.39 640.60 814.04 858.84 882.83  905.68  922.54
Denmark ............... 36.00  60.98  86.18 111.65 134.77 145.60 152.11  160.49  165.50
Finland ............... 16.88  30.64  50.56  80.56 105.47 110.78 115.81  119.02  125.57
France ................ 19.34  37.73  67.49  84.38  99.77 105.05 107.88  110.71  116.37
Germany, former West    15.43  22.17  27.95  35.27  45.23  47.78  48.28   49.14   50.87
Germany 2 .............    -      -      -      -   43.33  45.74  46.26   47.08   48.71
Greece ................    55    159    506   1071   2124   2514   2632      -       -
Ireland ...............  1.37   2.93   5.62   7.13   8.59   9.12   9.53   10.06   10.67
Italy .................  3048   6966  14563  20900  26425  29945  29714   30186   30739
Luxembourg ...........    239    352    464    559    667    670    679     706     729
Netherlands ........... 16.59  23.93  29.04  32.90  38.69  40.66  42.46   44.07   45.54
Norway ................ 35.29  57.20  89.11 134.26 154.44 168.10 177.46  186.67  194.35
Portugal .............. 40.26 103.28 263.37 538.11 804.35 943.62 988.13 1007.08 1032.05
Spain .................   145    422    792   1161   1604   1793   1814    1891    1956
Sweden ................ 29.73  52.91  83.12 123.98 153.14 169.87 175.11  178.73  184.77
Switzerland ........... 15.72  18.57  23.71  29.00  34.61  35.10  35.37   35.45   35.90
United Kingdom .......   1.52   3.25   4.84   7.12   8.66   9.42   9.89   10.19   10.48


For currency units, see note to table 6.          
Dash means data not available.                    
1  Hong Kong Special Administrative Region of China.
2  Referred to as unified Germany in prior news releases.

Source:  U.S. Department of Labor, Bureau of Labor Statistics, September 2001.
Table 5. Annual percent change in hourly compensation costs in national currency for
production workers in manufacturing, 29 countries or areas and selected economic
groups, selected periods, 1975-2000


Country or area        1975- 1975- 1980- 1985- 1990- 1995-   1998  1999  2000
                        2000  1980  1985  1990  1995  2000

North America
United States .........   4.7   9.2   5.7   2.8   2.9   2.9   1.8   2.8   3.9
Canada ................   5.7  10.8   8.1   4.5   3.5   1.7   1.5    .5   3.3
Mexico ................  33.2  23.2  51.6  61.1  16.9  19.2  19.3  18.6  16.6

Asia and Oceania
Australia .............   7.2  11.6   9.5   7.4   4.3   3.4   6.4   2.2    .4
Hong Kong SAR 1 .......  10.3  15.0  12.4  13.1   8.4   2.9   1.0   -.4   2.0
Israel ................  52.2  68.3 200.9  29.2  13.0  10.6  10.0   8.0   6.4
Japan .................   4.0   7.0   4.0   4.2   3.8   1.2   1.2   -.9   -.2
Korea .................  17.7  30.0  13.0  19.6  16.5  10.4   6.2   5.7   9.6
New Zealand ...........   8.0  15.6  10.4   9.3   2.0   3.3   3.1   2.8   3.1
Singapore .............   7.7   9.9  11.2   4.8   8.7   4.3   6.0  -7.0   6.0
Sri Lanka ............(2)12.4  12.7  16.2  13.1  11.7    -   12.1   8.3    -
Taiwan ................  10.6  19.0  10.5  12.1   8.3   3.5   4.1   2.7   2.8

Europe
Austria ...............   5.4   7.9   6.4   5.1   4.9   2.6   2.5   2.7   2.8
Belgium ...............   5.6  10.2   6.8   3.8   4.9   2.5   2.8   2.6   1.9
Denmark ...............   6.3  11.1   7.2   5.3   3.8   4.2   4.5   5.5   3.1
Finland ...............   8.4  12.7  10.5   9.8   5.5   3.6   4.5   2.8   5.5
France ................   7.4  14.3  12.3   4.6   3.4   3.1   2.7   2.6   5.1
Germany, former West ..   4.9   7.5   4.7   4.8   5.1   2.4   1.0   1.8   3.5
Germany 3 .............    -     -     -     -     -    2.4   1.1   1.8   3.5
Greece ...............(2)18.3  23.7  26.1  16.2  14.7    -    4.7    -     -
Ireland ...............   8.6  16.4  13.9   4.9   3.8   4.4   4.5   5.6   6.1
Italy .................   9.7  18.0  15.9   7.5   4.8   3.1   -.8   1.6   1.8
Luxembourg ............   4.6   8.1   5.7   3.8   3.6     2   1.3   4.0   3.3
Netherlands ...........   4.1   7.6   3.9   2.5   3.3   3.3   4.4   3.8   3.3
Norway ................   7.1  10.1   9.3   8.5   2.8   4.7   5.6   5.2   4.1
Portugal ..............  13.9  20.7  20.6  15.4   8.4     5   4.7   1.9   2.5
Spain .................  11.0  23.8  13.4   7.9   6.7   4.0   1.2   4.2   3.4
Sweden ................   7.6  12.2   9.5   8.3   4.3   3.8   3.1   2.1   3.4
Switzerland ...........   3.4   3.4   5.0   4.1   3.6    .7    .8    .2   1.3
United Kingdom ........   8.0  16.4   8.3   8.0   4.0   3.9   5.0   3.0   2.8

Trade-weighted measures 4,5
All 28 foreign economies  9.7  13.6  14.0  11.7   6.3   4.3   4.1   2.8   4.1
    less Mexico, Israel   6.8  12.0   8.0   6.4   5.1   2.7   2.4   1.0   2.8
OECD 6 ................   9.2  12.8  12.3  11.7   5.9   4.4   4.0   3.1   4.2
  less Mexico, Korea 7    5.7  10.5   7.3   5.0   3.9   2.1   2.0   1.0   2.3
Europe ................   6.8  12.4   8.7   5.8   4.4   3.1   2.6   2.6   3.3
Asian NIEs ............  11.9  19.6  11.6  12.9  10.7   5.5   4.5   1.1   5.2


Rates of change based on compound rate method.
Dash means data not available.
1  Hong Kong Special Administrative Region of China.
2  1975-99 for Sri Lanka; 1975-98 for Greece.
3  Referred to as unified Germany in prior news releases.
4  Because data for Germany (referred to as unified Germany in prior news releases)
   are not available before 1993, data for the former West Germany only are included
   in the trade-weighted measures.
5  Trade-weighted percent changes computed as the trade-weighted
   average of the rates of change for the individual countries or areas.
   For description of trade-weighted measures and economic groups,
   see the Technical Notes preceding these tables.
6  Organization for Economic Cooperation and Development.
7  Mexico joined the OECD in 1994, and Korea joined in 1996

Source:  U.S. Department of Labor, Bureau of Labor Statistics, September 2001.
Table 6.  Exchange rates, 29 countries or areas, selected years, 1975-2000
(National currency units per U.S. dollar)


Country or area          1975   1980   1985   1990   1995   1997   1998   1999   2000


North America
United States ......... 1.000  1.000  1.000  1.000  1.000  1.000  1.000  1.000  1.000
Canada ................ 1.017  1.169  1.366  1.167  1.373  1.385  1.484  1.486  1.486
Mexico ................ 12.50  22.97  256.9   2813  6.419  7.918  9.152  9.553  9.459

Asia and Oceania
Australia ............. .7647  .8772  1.428  1.281  1.350  1.345  1.590  1.549  1.720
Hong Kong SAR 1 ....    4.939  4.976  7.791  7.790  7.736  7.743  7.747  7.759  7.792
Israel ................ .6390  5.124  1.179  2.016  3.011  3.449  3.800  4.140  4.077
Japan ................. 296.7  225.7  238.5  145.0  93.96  121.1  131.0  113.7  107.8
Korea ................. 484.0  607.4  870.0  707.8  771.3  950.8   1400   1190   1131
New Zealand ........... .8254  1.027  2.010  1.677  1.524  1.509  1.865  1.889  2.189
Singapore ............. 2.371  2.141  2.200  1.813  1.417  1.486  1.672  1.695  1.725
Sri Lanka ............. 7.050  16.53  27.16  40.06  51.25  59.00  64.45  70.64     -
Taiwan ................ 38.00  36.02  39.85  26.92  26.50  28.78  33.55  32.32  31.26

Europe
Austria ............... 17.40  12.93  20.68  11.33  10.08  12.21  12.38  12.92  14.91
Belgium ............... 36.69  29.20  59.34  33.42  29.47  35.81  36.31  37.87  43.70
Denmark ............... 5.735  5.629  10.60  6.190  5.600  6.609  6.703  6.990  8.095
Finland ............... 3.665  3.719  6.197  3.830  4.376  5.196  5.347  5.581  6.440
France ................ 4.282  4.220  8.980  5.447  4.986  5.839  5.900  6.157  7.105
Germany, former West    2.455  1.815  2.942  1.617  1.432  1.735  1.760  1.836  2.119
Germany 2 .............    -      -      -      -   1.432  1.735  1.760  1.836  2.119
Greece ................ 32.29  42.62  138.1  158.5  231.7  273.1  295.5     -      -
Ireland ............... .4500  .4860  .9379  .6033  .6236  .6595  .7019  .7393  .8531
Italy ................. 652.4  855.1   1909   1198   1629   1704   1737   1818   2097
Luxembourg ............ 36.78  29.24  59.38  33.42  29.48  35.77  36.30  37.87  43.70
Netherlands ........... 2.523  1.985  3.318  1.822  1.604  1.953  1.984  2.069  2.387
Norway ................ 5.214  4.936  8.593  6.254  6.336  7.086  7.552  7.807  8.813
Portugal .............. 25.45  50.05  172.1  142.7  149.9  175.4  180.3  188.2  217.2
Spain ................. 57.39  71.64  170.0  102.0  124.6  146.5  149.4  156.2  180.2
Sweden ................ 4.142  4.229  8.603  5.923  7.141  7.645  7.952  8.274  9.174
Switzerland ........... 2.581  1.675  2.455  1.390  1.181  1.451  1.451  1.505  1.690
United Kingdom ........ .4501  .4300  .7708  .5605  .6335  .6106  .6034  .6184  .6598


1 Hong Kong Special Administrative Region of China.
2 Referred to as unified Germany in prior news releases.

Note:  National currency units are: United States, dollar; Canada, dollar;
Mexico, peso; Australia, dollar; Hong Kong, dollar; Israel, shekel (1975-84),
new shekel (1985-2000); Japan, yen; Korea, won; New Zealand, dollar;
Singapore, dollar; Sri Lanka, rupee; Taiwan, dollar; Austria, schilling;
Belgium, franc; Denmark, krone; Finland, markka; France, franc; 
Germany, mark; Greece, drachma; Ireland, pound; Italy, lira; Luxembourg, franc;
Netherlands, guilder; Norway, krone; Portugal, escudo; Spain, peseta; Sweden, krona;
Switzerland, franc; United Kingdom, pound.


Source:  U.S. Department of Labor, Bureau of Labor Statistics, September 2001.
Table 7.  Annual percent change in exchange rates (U.S. dollars per national currency unit),
29 countries or areas and selected economic groups, selected years, 1975-2000


Country or area        1975- 1975- 1980- 1985- 1990- 1995-   1998  1999  2000
                        2000  1980  1985  1990  1995  2000

North America
United States .........    -     -     -     -     -     -     -     -     -
Canada ................  -1.5  -2.7  -3.1   3.2  -3.2  -1.6  -6.7   -.1    .0
Mexico ................ -23.3 -11.5 -38.3 -38.0 -15.2  -7.5 -13.5  -4.2   1.0

Asia and Oceania
Australia .............  -3.2  -2.7  -9.3   2.2  -1.0  -4.7 -15.4   2.6  -9.9
Hong Kong SAR 1 .......  -1.8   -.1  -8.6    .0    .1   -.1   -.1   -.2   -.4
Israel ................ -29.6 -34.1 -66.3 -10.2  -7.7  -5.9  -9.2  -8.2   1.5
Japan .................   4.1   5.6  -1.1  10.5   9.1  -2.7  -7.6  15.2   5.5
Korea .................  -3.3  -4.4  -6.9   4.2  -1.7  -7.4 -32.1  17.6   5.2
New Zealand ...........  -3.8  -4.3 -12.6   3.7   1.9  -7.0 -19.1  -1.3 -13.7
Singapore .............   1.3   2.1   -.5   3.9   5.1  -3.9 -11.1  -1.4  -1.7
Sri Lanka ............(2)-9.2 -15.7  -9.5  -7.5  -4.8    -   -8.5  -8.8    -
Taiwan ................    .8   1.1  -2.0   8.2    .3  -3.2 -14.2   3.8   3.4

Europe
Austria ...............    .6   6.1  -9.0  12.8   2.4  -7.5  -1.4  -4.2 -13.3
Belgium ...............   -.7   4.7 -13.2  12.2   2.5  -7.6  -1.4  -4.1 -13.3
Denmark ...............  -1.4    .4 -11.9  11.4   2.0  -7.1  -1.4  -4.1 -13.7
Finland ...............  -2.2   -.3  -9.7  10.1  -2.6  -7.4  -2.8  -4.2 -13.3
France ................  -2.0    .3 -14.0  10.5   1.8  -6.8  -1.0  -4.2 -13.3
Germany, former West ..    .6   6.2  -9.2  12.7   2.5  -7.5  -1.4  -4.1 -13.4
Germany 3 .............    -     -     -     -     -   -7.5  -1.4  -4.1 -13.4
Greece ...............(2)-9.2  -5.4 -21.0  -2.7  -7.3    -   -7.6    -     -
Ireland ...............  -2.5  -1.5 -12.3   9.2   -.7  -6.1  -6.0  -5.1 -13.3
Italy .................  -4.6  -5.3 -14.8   9.8  -6.0  -4.9  -1.9  -4.5 -13.3
Luxembourg ............   -.7   4.7 -13.2  12.2   2.5  -7.6  -1.5  -4.1 -13.3
Netherlands ...........    .2   4.9  -9.8  12.7   2.6  -7.6  -1.6  -4.1 -13.3
Norway ................  -2.1   1.1 -10.5   6.6   -.3  -6.4  -6.2  -3.3 -11.4
Portugal ..............  -8.2 -12.7 -21.9   3.8  -1.0    -7  -2.7  -4.2 -13.4
Spain .................  -4.5  -4.3 -15.9  10.8  -3.9  -7.1  -1.9  -4.4 -13.3
Sweden ................  -3.1   -.4 -13.2   7.8  -3.7  -4.9  -3.9  -3.9  -9.8
Switzerland ...........   1.7   9.0  -7.4  12.0   3.3  -6.9    .0  -3.6 -10.9
United Kingdom ........  -1.5    .9 -11.0   6.6  -2.4   -.8   1.2  -2.4  -6.3

Trade-weighted measures 4,5
All 28 foreign economies -2.6   -.5  -9.4   2.9   -.4  -4.0  -7.6   2.3  -2.1
    less Mexico, Israel   -.1   1.0  -5.8   7.3   1.2  -3.7  -6.9   3.1  -2.5
OECD 6 ................  -2.7   -.3  -9.6   2.8   -.6  -4.2  -7.2   2.5  -2.6
  less Mexico, Korea 7     .0   1.3  -6.1   7.9   1.4  -3.6  -5.0   2.5  -3.4
Europe ................  -1.3   2.0 -11.7  10.3    .0  -5.7  -1.2  -3.8 -11.7
Asian NIEs ............   -.7   -.5  -4.2   4.9    .7  -4.0 -16.3   6.0   2.3


Rates of change based on compound rate method.
Dash means data not available.
1  Hong Kong Special Administrative Region of China.
2  1975-99 for Sri Lanka; 1975-98 for Greece.
3  Referred to as unified Germany in prior news releases.
4  Because data for Germany (referred to as unified Germany in prior news releases)
   are not available before 1993, data for the former West Germany only are included
   in the trade-weighted measures.
5  Trade-weighted percent changes computed as the trade-weighted
   average of the rates of change for the individual countries or areas.
   For description of trade-weighted measures and economic groups,
   see the Technical Notes preceding these tables.
6  Organization for Economic Cooperation and Development.
7  Mexico joined the OECD in 1994, and Korea joined in 1996

Source:  U.S. Department of Labor, Bureau of Labor Statistics, September 2001.
TECHNICAL NOTES

The tables in this news release present international comparisons of hourly 
compensation costs for production workers in manufacturing in selected countries 
or areas.  The total compensation measures are prepared by the Bureau of Labor 
Statistics in order to assess international differences in employer labor costs.  
Comparisons based on the more readily available average earnings statistics 
published by many countries can be very misleading.  National definitions of 
average earnings differ considerably; average earnings do not include all items 
of labor compensation; and the omitted items of compensation frequently 
represent a large proportion of total compensation.

The compensation measures are computed in national currency units and are 
converted into U.S. dollars at prevailing commercial market currency exchange 
rates.  The foreign currency exchange rates used in the calculations are the 
average daily exchange rates for the reference period.  They are appropriate 
measures for comparing levels of employer labor costs.  They do not indicate 
relative living standards of workers or the purchasing power of their income.  
Prices of goods and services vary greatly among countries, and commercial market 
exchange rates are not reliable indicators of relative differences in prices.

Definitions

Hourly compensation costs include (1) hourly direct pay and (2) employer social 
insurance expenditures and other labor taxes.  Hourly direct pay includes all 
payments made directly to the worker, before payroll deductions of any kind, 
consisting of (a) pay for time worked (basic time and piece rates plus overtime 
premiums, shift differentials, other premiums and bonuses paid regularly each 
pay period, and cost-of-living adjustments) and (b) other direct pay (pay for 
time not worked (vacations, holidays, and other leave, except sick leave), 
seasonal or irregular bonuses and other special payments, selected social 
allowances, and the cost of payments in kind).  Social insurance expenditures 
and other labor taxes include (c) employer expenditures for legally required 
insurance programs and contractual and private benefit plans (retirement and 
disability pensions, health insurance, income guarantee insurance and sick 
leave, life and accident insurance, occupational injury and illness 
compensation, unemployment insurance, and family allowances) and, for some 
countries, (d) other labor taxes (other taxes on payrolls or employment (or 
reductions to reflect subsidies), even if they do not finance programs that 
directly benefit workers, because such taxes are regarded as labor costs).  For 
consistency, compensation is measured on an hours-worked basis for every 
country.

The BLS definition of hourly compensation costs is not the same as the 
International Labour Office (ILO) definition of total labor costs.  Hourly 
compensation costs do not include all items of labor costs.  The costs of 
recruitment, employee training, and plant facilities and services(such as 
cafeterias and medical clinics(are not included because data are not available 
for most countries.  The labor costs not included account for no more than 4 
percent of total labor costs in any country for which the data are available.

Production workers generally include those employees who are engaged in 
fabricating, assembly, and related activities; material handling, warehousing, 
and shipping; maintenance and repair; janitorial and guard services; auxiliary 
production (for example, powerplants); and other services closely related to the 
above activities.  Working supervisors are generally included; apprentices and 
other trainees are generally excluded.

Methods

Total compensation is computed by adjusting each country's average earnings 
series for items of direct pay not included in earnings and for employer 
expenditures for legally required insurance, contractual and private benefit 
plans, and other labor taxes.  For the United States and other countries that 
measure earnings on an hours-paid basis, the figures are also adjusted in order 
to approximate compensation per hour worked.

Earnings statistics are obtained from surveys of employment, hours, and earnings 
or from surveys or censuses of manufactures.

Adjustment factors are obtained from periodic labor cost surveys and 
interpolated or projected to nonsurvey years on the basis of other information 
for most countries.  The information used includes annual tabulations of 
employer social security contribution rates provided by the International 
Studies Staff of the U.S. Social Security Administration, information on 
contractual and legislated fringe benefit changes from ILO and national labor 
bulletins, and statistical series on indirect labor costs.  For other countries, 
adjustment factors are obtained from surveys or censuses of manufactures or from 
reports on fringe-benefit systems and social security.  For the United States, 
the adjustment factors are special calculations for international comparisons 
based on data from several surveys.

The statistics are also adjusted, where necessary, to account for major 
differences in worker coverage; differences in industrial classification 
systems; and changes over time in survey coverage, sample benchmarks, or 
frequency of surveys.  Nevertheless, some differences in industrial coverage 
remain and, with the exception of the United States, Canada, and several other 
countries, the data exclude very small establishments (less than 5 employees in 
Japan and less than 10 employees in most European and some other countries).  
For the United States, the methods used, as well as the results, differ somewhat 
from those for other BLS series on U.S. compensation costs.

Hourly compensation costs are converted to U.S. dollars using the average daily 
exchange rate for the reference period.  The exchange rates used are prevailing 
commercial market exchange rates as published by either the U.S. Federal Reserve 
Board or the International Monetary Fund.

For further details on survey sources and on special estimation procedures for 
some countries because of incomplete data, see International Comparisons of 
Hourly Compensation Costs for Production Workers in Manufacturing, 1995 (Report 
909, Bureau of Labor Statistics, September 1996).

Country notes 

The following are exceptions to the standard coverage and definitions explained 
above:

Australia.  Compensation relates to production workers and nonproduction workers 
other than those in managerial, executive, professional, and higher supervisory 
positions.

Hong Kong SAR.  Average of selected manufacturing industries.  The industries 
covered accounted for about 70 percent of all persons employed in manufacturing 
in 1988.  Compensation excludes overtime pay.  Hong Kong became a Special 
Administrative Region (SAR) of China in July 1997.

Austria.  Excludes workers in establishments considered handicraft 
manufacturers.  (All printing and publishing and miscellaneous manufacturing 
establishments are classified in handicrafts.)  In 1986, handicraft employment 
was about 35 percent of all manufacturing employment.  Average compensation per 
employee was about 10 percent lower in manufacturing including handicrafts than 
in manufacturing excluding handicrafts.

Finland.  Includes workers in mining and electrical power plants.  For 
comparability with other countries, compensation excludes some obligatory 
training and plant facilities costs; these costs would add 1.6 percent to 
average hourly compensation costs in 1994.

Germany.  Excludes workers in establishments considered handicraft 
manufacturers.  In 1990, handicraft employment in the former West Germany was 
about 25 percent of all manufacturing employment.  Average hourly earnings of 
production workers were about 3 percent lower in manufacturing including 
handicrafts than in manufacturing excluding handicrafts.

Ireland.  Data refer to September for 1975.

Norway.  For comparability with other countries, compensation excludes some 
obligatory training and plant facilities costs; these costs would add 2.2 
percent to average hourly compensation costs in 1994.  

Trade-weighted measures

The trade weights used to compute the average compensation cost measures for 
selected economic groups are relative importances derived from the sum of U.S. 
imports of manufactured products for consumption (customs value) and U.S. 
exports of domestic manufactured products (free along side {f.a.s.} value) in 
1992 for each country or area and each economic group.  See table below.


Table A.  Share of total U.S. imports and exports 
of manufactured products in 1992(in percent)
Country or area      1992       Country or area        1992
      and           trade             and             trade
economic group      share       economic group        share
Canada              19.2        Greece                  .1
Mexico               7.6        Ireland                 .6
                                Italy                  2.3
Australia            1.4        Luxembourg              .1
Hong Kong SAR 1      2.0        Netherlands            1.9
Israel                .8        Norway                  .3
Japan               15.8
                                Portugal                .2
Korea                3.4        Spain                   .8
New Zealand           .3        Sweden                  .8
Singapore            2.4        Switzerland            1.0
Sri Lanka             .1        United Kingdom         4.4
Taiwan               4.4        Economic groups:
Austria               .3        28 foreign
Belgium              1.5          economies           80.8
Denmark               .3        OECD 3                71.1
Finland               .2        Europe                23.4
France               3.2        European Union        22.1
Germany 2            5.4        Asian NIEs            12.2
1 Hong Kong Special Administrative Region of China.
2 Former West Germany.
3 Organization for Economic Cooperation and Development.


The trade data used to compute the weights are U.S. Bureau of the Census 
statistics of U.S. imports and exports converted to an industrial classification 
basis from data initially collected under the Harmonized Tariff Schedule 
commodity classification system.

The Organization for Economic Cooperation and Development (OECD) includes 
Canada, Mexico, Australia, Japan, Korea, New Zealand, and all European 
countries.  Europe consists of Austria, Belgium, Denmark, Finland, France, 
Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, 
Spain, Sweden, Switzerland, and the United Kingdom.  The group labeled "Asian 
NIEs" consists of the four newly industrializing economies of Hong Kong SAR, 
Korea, Singapore, and Taiwan.

The trade weighted measures relate to all the countries or areas covered in the 
series.  Data for Germany relate to the former West Germany.  Estimates are 
computed for missing country data using the average trend in other economies to 
estimate the missing data.  Trade weighted average percent changes for the 28 
foreign economies are computed both including and excluding Mexico and Israel 
because their rapid rates of inflation and currency changes in several years 
distort the trade-weighted averages.

The trade-weighted average rates of change are computed as the trade-weighted 
arithmetic average of the rates of change for the individual countries or areas; 
the trade-weighted average hourly compensation costs are computed as the trade-
weighted arithmetic average of cost levels for the individual countries or 
areas.  Rates of change derived from the trade-weighted average hourly 
compensation cost levels need not be the same as the trade-weighted average 
rates of change.

Data limitations

Because compensation is partly estimated, the statistics should not be 
considered as precise measures of comparative compensation costs.  In addition, 
the figures are subject to revision as the results of new labor cost surveys or 
other data used to estimate compensation costs become available.

The comparative level figures in this report are averages for all manufacturing 
industries and are not necessarily representative of all component industries.  
In the United States and some other countries, such as Japan, differentials in 
hourly compensation cost levels by industry are quite wide.  In contrast, other 
countries, such as Sweden, have narrow differentials.

Labor costs versus labor income

The hourly compensation figures in U.S. dollars shown in the tables provide 
comparative measures of employer labor costs;  they do not provide intercountry 
comparisons of the purchasing power of worker incomes.  Prices of goods and 
services vary greatly among countries, and the commercial market exchange rates 
used to compare employer labor costs do not reliably indicate relative 
differences in prices.  Purchasing power parities(that is, the number of foreign 
currency units required to buy goods and services equivalent to what can be 
purchased with one unit of U.S. or other base-country currency(must be used for 
meaningful international comparisons of the relative purchasing power of worker 
incomes.

Total compensation converted to U.S. dollars at purchasing power parities would 
provide one measure for comparing relative real levels of labor income.  It 
should be noted, however, that total compensation includes employer payments to 
funds for the benefit of workers in addition to payments made directly to 
workers.  (For a few countries, the compensation measures also include taxes or 
subsidies on payrolls or employment even if they do not finance programs which 
directly benefit workers.)  Payments into these funds provide either deferred 
income (for example, payments to retirement funds), a type of insurance (for 
example, payments to unemployment or health benefit funds), or current social 
benefits (for example, family allowances), and the relationship between employer 
payments and current or future worker benefits is indirect.  On the other hand, 
excluding these payments would understate the total value of income derived from 
work because they substitute for worker savings or self-insurance to cover 
retirement, medical costs, etc.

Total compensation, because it takes account of employer payments into funds for 
the benefit of workers, is a broader income concept than either total direct 
earnings or direct spendable earnings.  An even broader concept would take 
account of all social benefits available to workers, including those financed 
out of general revenues as well as those financed through employment or payroll 
taxes.