USDL 02-318
TRANSMISSION OF THIS
MATERIAL IS EMBARGOED
UNTIL 8:30 A.M. EDT,
FRIDAY, MAY 31, 2002.
                                      
Internet address:  http://www.bls.gov/lpc/
Historical,        
technical
  information:     (202) 691-5606
Current data:      (202) 691-5200
Media contact:     (202) 691-5902
                                      
                                      
                           PRODUCTIVITY AND COSTS
                             First Quarter 2002


     The Bureau of Labor Statistics of the U.S. Department of Labor today
reported revised productivity data--as measured by output per hour of all
persons--for the first quarter of 2002.  The revised seasonally adjusted
annual rates of productivity change in the first quarter were:

               8.3 percent in the business sector and
               8.4 percent in the nonfarm business sector.

In both sectors, the first-quarter productivity gains were slightly lower
than those reported initially on May 7.

     In manufacturing, the revised productivity changes in the first quarter
were:

               9.4 percent in manufacturing,
              13.3 percent in durable goods manufacturing, and
               4.6 percent in nondurable goods manufacturing.

     Manufacturing productivity rose as first-quarter output increased while
hours of all persons working in the sector declined for the seventh
consecutive quarter.  Output and hours in manufacturing, which includes about
16 percent of U.S. business-sector employment, tend to vary more from quarter
to quarter than data for the more aggregate business and nonfarm business
sectors.  First-quarter measures are summarized in table A and appear in
detail in tables 1 through 5.

     The data sources and methods used in the preparation of the
manufacturing series differ from those used in preparing the business and
nonfarm business series, and these measures are not directly comparable.
Output measures for business and nonfarm business are based on measures of
gross domestic product prepared by the Bureau of Economic Analysis of the
U.S. Department of Commerce.  Quarterly output measures for manufacturing
reflect indexes of industrial production independently prepared by the Board
of Governors of the Federal Reserve System.  See Technical Notes for further
information on data sources.

-------------------------------------------------------------------------
Table A. Productivity and costs: Revised first-quarter 2002 measures
(Seasonally adjusted annual rates)
-------------------------------------------------------------------------                                                           
                                                          Real      
                                                 Hourly   hourly    Unit
                   Produc-                       compen-  compen-   labor
Sector             tivity    Output    Hours     sation   sation    costs
-------------------------------------------------------------------------                   
                      Percent change from preceding quarter
Business            8.3       6.2       -2.0      2.9      1.4       -5.0
Nonfarm business    8.4       6.1       -2.1      2.8      1.4       -5.2
Manufacturing       9.4       2.9       -5.9      2.4      1.0       -6.4
  Durable          13.3       4.8       -7.5      1.9      0.4      -10.1
  Nondurable        4.6       1.0       -3.5      3.8      2.4       -0.7
-------------------------------------------------------------------------  
                      Percent change from same quarter a year ago
Business            4.1       1.2       -2.8      3.4      2.1       -0.7
Nonfarm business    4.2       1.2       -2.9      3.4      2.1       -0.8
Manufacturing       4.0      -3.7       -7.4      3.6      2.4       -0.3
  Durable           4.6      -4.8       -9.0      4.0      2.7       -0.6
  Nondurable        2.7      -2.3       -4.9      3.4      2.1        0.7
-------------------------------------------------------------------------


Business

     Productivity increased 8.3 percent in the business sector (seasonally
adjusted annual rate) from the fourth quarter of 2001 to the first quarter of
2002, as output increased 6.2 percent and hours worked by all persons
decreased 2.0 percent (table 1).  The gain in output per hour was the largest
since the first quarter of 1973, when growth was 8.4 percent.

     Hourly compensation increased 2.9 percent during the first quarter of
2002.  This measure of compensation includes wages and salaries, supplements,
employer contributions to employee benefit plans, and taxes.  Real hourly
compensation, which takes into account changes in consumer prices, increased
1.4 percent in the first quarter.
     
     Unit labor costs, which reflect changes in both hourly compensation and
productivity, dropped 5.0 percent during the first quarter of 2002.  The
decline in unit labor costs was the largest since a fall of 7.5 percent in
the first quarter of 1955.  The implicit price deflator for business output,
which reflects changes in both unit labor costs and unit nonlabor payments,
was unchanged between the fourth quarter of 2001 and the first quarter of
2002.

Nonfarm business

     Productivity rose 8.4 percent in the nonfarm business sector during the
first quarter of 2002, reflecting a 6.1-percent rise in output and a 2.1-
percent decrease in working hours of all persons.  The increase in output per
hour was the largest since the second quarter of 1983, when growth was 9.9
percent.  Hours worked in the nonfarm business sector now have declined in
seven of the last eight quarters (table 2).

     Hourly compensation increased 2.8 percent in the first quarter of 2002.
When the rise in consumer prices is taken into account, real hourly
compensation gained 1.4 percent in the first quarter.

     The 5.2-percent decrease in unit labor costs during the first quarter of
2002 was the largest posted since the second quarter of 1983, when these
costs fell 6.5 percent.  The implicit price deflator for nonfarm business
output declined 0.6 percent in the first quarter of 2002.

Manufacturing

     Productivity rose 9.4 percent in manufacturing in the first quarter of
2002, as output increased 2.9 percent and working hours of all persons
declined 5.9 percent (seasonally adjusted annual rates).  In durable goods
industries, productivity grew 13.3 percent, reflecting an output increase of
4.8 percent and a decline of 7.5 percent in hours of all persons.  In
nondurable goods industries, productivity rose 4.6 percent as output rose 1.0
percent and hours dropped 3.5 percent (tables 3, 4, and 5).

     Hourly compensation in manufacturing rose 2.4 percent during the first
quarter.  This increase reflects a rise of 1.9 percent in the hourly
compensation of persons in durable goods industries and a larger increase,
3.8 percent, in the hourly compensation of workers in nondurable goods
industries.  Real hourly compensation, which takes account of changes in
consumer prices, rose 1.0 percent for all manufacturing workers.

     The combination of a 9.4-percent rise in manufacturing productivity and
a 2.4-percent increase in hourly compensation in the first quarter caused
unit labor costs in manufacturing to fall 6.4 percent.  The last time unit
labor costs fell this much in one quarter was in the second quarter of 1961,
when they fell 6.9 percent.  Unit labor costs declined in both sectors of
manufacturing in the first quarter of 2002.  In durable goods industries,
they fell 10.1 percent, the largest decline since a 10.3-percent drop in the
first quarter of 1960.  In nondurable goods industries, unit labor costs fell
0.7 percent in the first quarter of 2002.


Nonfinancial corporations

     Preliminary first-quarter 2002 measures of productivity and costs for
nonfinancial corporations also were announced today (tables B and 6).
Productivity rose 6.7 percent in the first quarter, less than the 11.2-
percent rise recorded in the fourth quarter of 2001.  Output increased 5.4
percent in first quarter 2002, while employee-hours declined 1.2 percent
(seasonally adjusted annual rates).  This marked the fourth consecutive
decline in hours of nonfinancial corporate employees, as employment fell in
all four quarters.  However, average weekly hours fell only in the last three
quarters of 2001; they rose 1.0 percent in the first quarter of 2002.
Nonfinancial corporations include all corporations doing business in the
United States, except banks, stock and commodity brokers, and finance and
insurance agencies.


----------------------------------------------------------------------------
Table B.  Nonfinancial corporations: Preliminary first-quarter 2002
productivity and cost measures
(Seasonally adjusted annual rates)
----------------------------------------------------------------------------                                                           
                                           Real                     
                                  Hourly   hourly   Unit            Implicit
         Produc-                  compen-  compen-  labor   Unit    price
Period   tivity   Output  Hours   sation   sation   costs   profits deflator
----------------------------------------------------------------------------                                                           
                 Percent change from preceding quarter
2002 I    6.7      5.4     -1.2    3.6      2.1      -2.9    15.5    -0.8
----------------------------------------------------------------------------
                 Percent change from same quarter a year ago
2002 I    5.5      2.4     -2.9    4.5      3.2      -0.9     4.2     0.2
----------------------------------------------------------------------------
     
     
     Hourly compensation increased 3.6 percent during both the fourth
quarter of 2001 and the first quarter of 2002.  When the rise in consumer
prices is taken into account, real hourly compensation rose 2.1 percent in
the first quarter.  Unit labor costs in nonfinancial corporations declined
2.9 percent in the first quarter, less than the 6.8-percent drop one quarter
earlier.  This was the first two-quarter decline in unit labor costs to
occur since the second and third quarters of 1997, when they fell 0.6 and
1.7 percent, respectively.

     Unit profits grew 15.5 percent in first quarter 2002, less than the
58.0-percent climb in the fourth quarter of 2001.  Unit profits had fallen
in the previous five quarters.  The implicit price deflator for nonfinancial
corporate output declined 0.8 percent in the first quarter of 2002.

REVISED MEASURES

     Current and previous measures for the first quarter of 2002 for
business, nonfarm business, and manufacturing are compared in table C.  
In the business, nonfarm business, and manufacturing sectors, output and
productivity were revised down from the data reported on May 7, based on
information then available.  As a result, unit labor costs were revised
upward.


-----------------------------------------------------------------------
Table C. Previous and revised productivity and related measures
(Quarterly percent change at seasonally adjusted annual rate)
-----------------------------------------------------------------------                                                          
                                                        Real      
                                               Hourly   hourly    Unit
                   Produc-                     compen-  compen-   labor
Sector             tivity   Output    Hours    sation   sation    costs
-----------------------------------------------------------------------                                                          
                             First quarter 2002
Business:                                                 
  Previous          8.5      6.5      -1.8      2.8      1.3       -5.3
  Current           8.3      6.2      -2.0      2.9      1.4       -5.0
Nonfarm business:                                                 
  Previous          8.6      6.5      -1.9      2.7      1.2       -5.4
  Current           8.4      6.1      -2.1      2.8      1.4       -5.2
Manufacturing:                                                    
  Previous          9.7      3.2      -5.9      2.5      1.1       -6.5
  Current           9.4      2.9      -5.9      2.4      1.0       -6.4
-----------------------------------------------------------------------                                      
                                      
                                      
                              NEXT RELEASE DATE
                                      
     The next release of Productivity and Costs is scheduled for 8:30 AM EDT,
Friday, Aug. 9, 2002.  Preliminary second-quarter measures for business,
nonfarm business, and manufacturing will be released at that time.  This
release will incorporate the annual benchmark revision to the employment
levels in the BLS establishment survey data.  All employment and hours series
will incorporate new information on seasonal patterns.  The release also will
incorporate the annual three-year revision of the National Income and Product
Accounts by the Bureau of Economic Analysis, U.S. Department of Commerce.



                                 TECHNICAL NOTES

Labor Hours: Hours data for the labor productivity and cost measures include 
hours for all persons working in the sector--wage and salary workers, the 
self-employed, and unpaid family workers.  The primary source of hours and 
employment data is the BLS Current Employment Statistics (CES) program, which 
provides monthly survey data on the number of jobs held by wage and salary 
workers in nonfarm establishments.  The CES also provides average weekly paid 
hours of production and nonsupervisory workers in these establishments.  The 
Office of Productivity and Technology estimates average weekly paid hours of 
nonproduction and supervisory workers.  Weekly paid hours are adjusted to 
hours at work using the BLS Hours at Work survey, conducted for this purpose. 
	Data from the BLS Current Population Survey (CPS) are used for farm 
labor; in the nonfarm sector, the National Income and Product Accounts (NIPA) 
prepared by the Bureau of Economic Analysis (BEA) of the Department of 
Commerce and the CPS are used to measure labor input for government 
enterprises, proprietors, and unpaid family workers. 

Output: Business sector output is an annual-weighted index constructed after 
excluding from gross domestic product (GDP) the following outputs: General 
government, nonprofit institutions, paid employees of private households, and 
the rental value of owner-occupied dwellings. Corresponding exclusions also 
are made in labor inputs. Business output accounted for about 77 percent of 
the value of GDP in 1996. Nonfarm business, which also excludes farming, 
accounted for about 76 percent of GDP in 1996.
	Annual indexes for manufacturing and its durable and nondurable goods 
components are constructed by deflating current-dollar industry value of 
production data from the U.S. Bureau of the Census with deflators from the 
BEA.  These deflators are based on data from the BLS producer price program 
and other sources.  The industry shipments are aggregated using annual 
weights, and intrasector transactions are removed.  Quarterly manufacturing 
output measures are based on the index of industrial production prepared 
monthly by the Board of Governors of the Federal Reserve System adjusted to 
be consistent with annual indexes of manufacturing sector output prepared by 
BLS.  Durables include the following 2-digit SIC industries: Primary metal 
industries; fabricated metal products; nonelectrical machinery; industrial 
and commercial machinery and computer equipment; electronic and other 
electrical equipment; transportation equipment; instruments; lumber and lum-
ber products; furniture and fixtures; stone, clay, and glass and concrete 
products; and miscellaneous manufactures. Nondurables include: Food and kin-
dred products, tobacco products, textile mill products, apparel products, 
paper and allied products, printing and publishing, chemicals and chemical 
products, petroleum refining and related industries, rubber and plastic 
products, and leather and leather products. 
	Nonfinancial corporate output is an annual-weighted index calculated on 
the basis of the costs incurred and the incomes earned from production.  The 
output measure excludes the following outputs from GDP: general government; 
nonprofit institutions; employees of private households; the rental value of 
owner-occupied dwellings; unincorporated business; and those corporations 
which are depository institutions, nondepository institutions, security and 
commodity brokers, insurance carriers, regulated investment offices, small 
business investment offices, and real estate investment trusts. Nonfinancial 
corporations accounted for about 53 percent of the value of GDP in 1996.

Productivity: These productivity measures describe the relationship between 
real output and the labor time involved in its production. They show the 
changes from period to period in the amount of goods and services produced 
per hour. Although these measures relate output to hours at work of all 
persons engaged in a sector, they do not measure the specific contribution of 
labor, capital, or any other factor of production. Rather, they reflect the 
joint effects of many influences, including changes in technology; capital 
investment; level of output; utilization of capacity, energy, and materials; 
the organization of production; managerial skill; and the characteristics and 
effort of the work force.

	Information in this release will be made available to sensory-impaired 
individuals upon request. Voice phone: 202-691-5200; Federal Relay Service 
number: 1-800-877-8339.




  Table 1. Business sector: Productivity, hourly compensation, unit labor costs,
  and prices, seasonally adjusted
                                                             Real
     Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
     and        hour of                of all    tion per    tion per    labor    labor pay-  price
     quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
  ---------------------------------------------------------------------------------------------------------
                                           Indexes 1992=100

  2000       I     115.3      138.6     120.2     129.3       108.7      112.2       114.2      112.9
            II     117.5      140.8     119.8     132.1       110.3      112.5       115.1      113.5
           III     117.8      141.2     119.9     134.3       111.1      114.0       113.8      113.9
            IV     118.7      141.9     119.5     137.4       112.9      115.8       112.0      114.4

        ANNUAL     117.3      140.6     119.8     133.3       110.8      113.6       113.8      113.7

  2001       I     118.6      142.3     119.9     139.1       113.3      117.3       111.7      115.2
            II     119.3      142.1     119.1     140.9       113.8      118.1       111.5      115.7
           III     119.5      141.2     118.2     142.1       114.5      118.9       111.7      116.2
            IV     121.1      141.8     117.1     142.8       115.3      118.0       112.3      115.9

        ANNUAL     119.6      141.9     118.6     141.2       114.2      118.1       111.8      115.8

  2002       I    r123.5     r143.9     116.6    r143.9      r115.7     r116.5       114.8     r115.9
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  2000       I      -0.1        2.2       2.3       6.5         2.4        6.6        -2.1        3.2
            II       7.7        6.5      -1.1       9.0         5.9        1.3         3.5        2.1
           III       1.2        1.3       0.1       6.8         3.1        5.5        -4.5        1.7
            IV       3.0        1.8      -1.1       9.5         6.4        6.3        -6.1        1.6

        ANNUAL       3.4        4.6       1.1       6.4         3.0        2.9         0.2        1.9

  2001       I      -0.2        1.2       1.4       5.1         1.4        5.3        -1.3        2.9
            II       2.2       -0.7      -2.8       5.2         2.0        3.0        -0.6        1.7
           III       0.7       -2.3      -2.9       3.3         2.6        2.6         0.6        1.9
            IV       5.4        1.6      -3.6       2.2         2.5       -3.0         2.2       -1.2

        ANNUAL       2.0        0.9      -1.0       6.0         3.1        3.9        -1.8        1.8

  2002       I      r8.3       r6.2     r-2.0      r2.9        r1.4      r-5.0         9.4       r0.0
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  2000       I       2.3        4.7       2.3       5.0         1.7        2.7        -0.3        1.5
            II       4.5        5.9       1.4       6.2         2.8        1.6         2.2        1.9
           III       4.0        4.9       0.9       6.6         3.0        2.5         1.3        2.1
            IV       2.9        3.0       0.0       7.9         4.4        4.9        -2.4        2.1

        ANNUAL       3.4        4.6       1.1       6.4         3.0        2.9         0.2        1.9

  2001       I       2.9        2.7      -0.2       7.6         4.2        4.6        -2.2        2.1
            II       1.6        0.9      -0.6       6.6         3.2        5.0        -3.2        2.0
           III       1.4        0.0      -1.4       5.8         3.1        4.3        -1.9        2.0
            IV       2.0        0.0      -2.0       4.0         2.1        1.9         0.2        1.3

        ANNUAL       2.0        0.9      -1.0       6.0         3.1        3.9        -1.8        1.8

  2002       I       4.1        1.2      -2.8       3.4         2.1       -0.7         2.8       r0.6
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       May 31, 2002
  r=revised                                                              Source: Bureau of Labor Statistics


  Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs,
  and prices, seasonally adjusted
                                                             Real
     Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
     and        hour of                of all    tion per    tion per    labor    labor pay-  price
     quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
  ---------------------------------------------------------------------------------------------------------
                                           Indexes 1992=100

  2000       I     114.8      138.8     120.9     128.7       108.2      112.1       115.9      113.5
            II     116.7      141.0     120.8     131.2       109.5      112.5       116.7      114.0
           III     117.2      141.4     120.7     133.6       110.5      114.0       115.3      114.5
            IV     117.8      142.1     120.6     136.5       112.1      115.8       113.4      114.9

        ANNUAL     116.6      140.8     120.8     132.5       110.2      113.6       115.3      114.2

  2001       I     117.8      142.5     121.0     138.1       112.4      117.2       113.1      115.7
            II     118.4      142.4     120.2     139.7       112.8      118.0       112.9      116.1
           III     118.7      141.5     119.2     141.0       113.7      118.7       112.9      116.6
            IV     120.3      142.1     118.1     141.8       114.4      117.8       114.2      116.5

        ANNUAL     118.8      142.1     119.6     140.1       113.3      117.9       113.3      116.2

  2002       I     122.8     r144.2    r117.4    r142.8      r114.8     r116.3       116.4     r116.3
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  2000       I       0.0        2.0       2.0       6.9         2.7        6.9        -1.8        3.5
            II       6.7        6.5      -0.2       8.1         5.0        1.3         2.5        1.7
           III       1.6        1.2      -0.5       7.4         3.7        5.7        -4.4        1.8
            IV       2.3        1.8      -0.5       8.9         5.8        6.4        -6.6        1.5

        ANNUAL       3.3        4.5       1.1       6.5         3.1        3.1         0.1        2.0

  2001       I      -0.1        1.4       1.4       4.9         1.2        5.0        -1.2        2.7
            II       2.1       -0.4      -2.4       4.7         1.5        2.6        -0.5        1.5
           III       1.1       -2.3      -3.4       3.7         3.0        2.6         0.0        1.7
            IV       5.5        1.5      -3.8       2.3         2.6       -3.1         4.6       -0.4

        ANNUAL       1.9        0.9      -0.9       5.8         2.9        3.8        -1.8        1.8

  2002       I      r8.4       r6.1     r-2.1      r2.8        r1.4      r-5.2        r8.2      r-0.6
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  2000       I       2.4        4.6       2.2       5.3         2.0        2.9         0.0        1.8
            II       4.4        5.9       1.4       6.3         2.9        1.8         2.1        1.9
           III       4.0        4.8       0.8       6.7         3.2        2.7         1.2        2.1
            IV       2.6        2.8       0.2       7.8         4.3        5.0        -2.6        2.2

        ANNUAL       3.3        4.5       1.1       6.5         3.1        3.1         0.1        2.0

  2001       I       2.6        2.7       0.1       7.3         3.9        4.6        -2.5        2.0
            II       1.5        1.0      -0.5       6.5         3.0        4.9        -3.2        1.9
           III       1.3        0.1      -1.2       5.5         2.8        4.1        -2.1        1.8
            IV       2.1        0.0      -2.1       3.9         2.0        1.7         0.7        1.4

        ANNUAL       1.9        0.9      -0.9       5.8         2.9        3.8        -1.8        1.8

  2002       I      r4.2       r1.2      -2.9      r3.4         2.1      r-0.8        r3.0        0.5
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       May 31, 2002
  r=revised                                                              Source: Bureau of Labor Statistics


  Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  2000       I            135.2        139.9        103.5        126.3          106.2          93.4
            II            137.2        142.3        103.8        128.6          107.4          93.8
           III            138.3        142.5        103.0        131.9          109.2          95.4
            IV            139.2        141.1        101.3        135.9          111.7          97.6

        ANNUAL            137.5        141.5        102.9        130.7          108.6          95.1

  2001       I            138.3        138.5        100.1        137.9          112.3          99.7
            II            138.1        136.3         98.7        140.0          113.0         101.3
           III            139.0        134.6         96.8        141.2          113.8         101.5
            IV            140.6        132.4         94.2        142.0          114.6         101.0

        ANNUAL            139.0        135.5         97.5        140.2          113.4         100.9

  2002       I           r143.8       r133.4         92.8        142.9          114.9         r99.4
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  2000       I              7.6          6.3         -1.2          5.9            1.8          -1.6
            II              6.1          7.1          0.9          7.5            4.4           1.4
           III              3.3          0.4         -2.8         10.6            6.8           7.1
            IV              2.8         -4.0         -6.6         12.7            9.5           9.7

        ANNUAL              6.1          4.6         -1.4          7.0            3.6           0.9

  2001       I             -2.7         -7.1         -4.5          6.0            2.2           8.9
            II             -0.5         -6.2         -5.7          6.1            2.8           6.7
           III              2.6         -4.9         -7.3          3.5            2.8           0.8
            IV              4.7         -6.3        -10.4          2.5            2.8          -2.1

        ANNUAL              1.1         -4.2         -5.3          7.3            4.4           6.1

  2002       I             r9.4         r2.9         -5.9         r2.4           r1.0         r-6.4
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  2000       I              6.0          5.1         -0.8          5.5            2.2          -0.5
            II              6.9          6.1         -0.7          6.1            2.8          -0.7
           III              6.7          5.1         -1.5          7.3            3.7           0.5
            IV              4.9          2.3         -2.4          9.1            5.6           4.0

        ANNUAL              6.1          4.6         -1.4          7.0            3.6           0.9

  2001       I              2.3         -1.0         -3.3          9.2            5.7           6.7
            II              0.7         -4.3         -4.9          8.8            5.3           8.1
           III              0.5         -5.5         -6.0          7.0            4.3           6.5
            IV              1.0         -6.1         -7.0          4.5            2.7           3.5

        ANNUAL              1.1         -4.2         -5.3          7.3            4.4           6.1

  2002       I              4.0        r-3.7         -7.4          3.6            2.4         r-0.3
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                May 31, 2002
  r=revised                                                       Source: Bureau of Labor Statistics


  Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  2000       I            152.0        166.7        109.7        124.4          104.6          81.8
            II            155.0        171.0        110.3        126.7          105.8          81.7
           III            156.4        171.6        109.7        130.1          107.7          83.2
            IV            156.9        169.5        108.0        134.6          110.5          85.7

        ANNUAL            155.1        169.7        109.4        128.9          107.2          83.1

  2001       I            155.2        165.2        106.5        136.6          111.2          88.0
            II            155.2        162.5        104.7        138.7          112.0          89.3
           III            156.0        159.3        102.1        140.2          113.0          89.8
            IV            157.4        155.5         98.8        141.4          114.1          89.9

        ANNUAL            155.9        160.6        103.0        139.2          112.6          89.2

  2002       I           r162.4        157.4        r96.9        142.1         r114.2          87.5
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  2000       I             13.5         12.8         -0.6          5.6            1.5          -7.0
            II              8.2         10.7          2.3          7.7            4.6          -0.5
           III              3.7          1.4         -2.2         11.2            7.4           7.3
            IV              1.3         -4.8         -6.0         14.3           11.1          12.9

        ANNUAL              8.1          7.4         -0.6          7.3            3.8          -0.8

  2001       I             -4.3         -9.7         -5.6          6.1            2.3          10.9
            II              0.0         -6.5         -6.6          6.3            3.0           6.2
           III              2.0         -7.6         -9.4          4.3            3.6           2.3
            IV              3.5         -9.2        -12.3          3.6            3.9           0.1

        ANNUAL              0.5         -5.3         -5.9          7.9            5.0           7.4

  2002       I             13.3         r4.8        r-7.5         r1.9           r0.4        r-10.1
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  2000       I              8.0          7.9         -0.1          5.7            2.4          -2.1
            II              9.1          9.5          0.4          6.2            2.8          -2.7
           III              8.7          7.7         -0.9          7.5            3.9          -1.1
            IV              6.5          4.8         -1.7          9.6            6.1           2.9

        ANNUAL              8.1          7.4         -0.6          7.3            3.8          -0.8

  2001       I              2.1         -0.9         -2.9          9.8            6.3           7.5
            II              0.1         -5.0         -5.1          9.4            5.9           9.3
           III             -0.3         -7.2         -6.9          7.7            5.0           8.0
            IV              0.3         -8.2         -8.5          5.1            3.2           4.8

        ANNUAL              0.5         -5.3         -5.9          7.9            5.0           7.4

  2002       I              4.6        r-4.8        r-9.0          4.0           r2.7         r-0.6
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                May 31, 2002
  r=revised                                                       Source: Bureau of Labor Statistics


  Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  2000       I            120.6        115.0         95.3        127.9          107.6         106.1
            II            121.7        115.7         95.1        130.1          108.6         106.9
           III            122.6        115.4         94.2        133.1          110.1         108.6
            IV            124.0        114.6         92.4        136.2          111.9         109.8

        ANNUAL            122.2        115.2         94.2        131.8          109.6         107.8

  2001       I            123.8        113.5         91.7        138.2          112.5         111.7
            II            123.3        111.8         90.7        140.2          113.2         113.7
           III            124.1        111.4         89.8        141.1          113.8         113.7
            IV            125.6        110.6         88.0        141.5          114.2         112.6

        ANNUAL            124.2        111.8         90.1        140.2          113.4         112.9

  2002       I           r127.1        110.9         87.2        142.8          114.8        r112.4
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  2000       I              0.5         -1.6         -2.1          6.3            2.2           5.7
            II              3.6          2.5         -1.1          6.9            3.9           3.2
           III              2.9         -0.9         -3.7          9.4            5.7           6.3
            IV              4.8         -2.9         -7.4          9.7            6.6           4.7

        ANNUAL              3.8          1.1         -2.6          6.4            2.9           2.5

  2001       I             -0.9         -3.7         -2.8          5.9            2.1           6.9
            II             -1.6         -5.9         -4.4          5.9            2.7           7.6
           III              2.7         -1.5         -4.1          2.6            1.9          -0.1
            IV              5.1         -2.9         -7.6          1.1            1.4          -3.8

        ANNUAL              1.6         -2.9         -4.4          6.4            3.5           4.7

  2002       I             r4.6         r1.0        r-3.5         r3.8            2.4         r-0.7
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  2000       I              3.5          1.6         -1.8          4.9            1.6           1.3
            II              4.4          1.9         -2.4          5.8            2.4           1.4
           III              4.4          1.8         -2.5          6.8            3.3           2.4
            IV              3.0         -0.7         -3.6          8.1            4.6           5.0

        ANNUAL              3.8          1.1         -2.6          6.4            2.9           2.5

  2001       I              2.6         -1.3         -3.8          8.0            4.6           5.3
            II              1.3         -3.3         -4.6          7.7            4.3           6.4
           III              1.2         -3.5         -4.7          6.0            3.3           4.7
            IV              1.3         -3.5         -4.7          3.9            2.0           2.6

        ANNUAL              1.6         -2.9         -4.4          6.4            3.5           4.7

  2002       I             r2.7         -2.3         -4.9          3.4            2.1          r0.7
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                May 31, 2002
  r=revised                                                       Source: Bureau of Labor Statistics


  Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits,
  and prices, seasonally adjusted
 
                Output                      Hourly    Real                Unit     Total    Unit   Implicit
      Year      per all-                    compen-   hourly     Unit     non-     unit     pro-   price
      and       employee          Employee  sation    compen-    labor    labor    costs    fits   deflator
      quarter   hour      Output  hours      (1)      sation(2)  costs    costs(6) (7)      (8)      (4)
  ----------------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  2000       I    117.2    146.6     125.1    125.0     105.1     106.6    106.2    106.5    135.1    108.9
            II    118.8    148.7     125.1    127.6     106.5     107.4    106.5    107.1    139.3    109.8
           III    119.6    149.7     125.2    129.7     107.3     108.5    107.1    108.1    135.8    110.5
            IV    119.8    149.8     125.1    132.7     109.0     110.8    107.8    110.0    120.5    110.9

        ANNUAL    118.8    148.7     125.1    128.8     107.0     108.3    106.9    107.9    132.6    110.0

  2001       I    119.9    150.1     125.1    134.5     109.5     112.2    109.3    111.4    111.1    111.4
            II    120.9    150.4     124.4    136.5     110.3     112.9    111.2    112.5    107.4    112.0
           III    121.2    149.4     123.3    138.1     111.4     114.0    114.2    114.0     99.6    112.8
            IV    124.4    151.7     121.9    139.4     112.5     112.0    111.6    111.9    111.6    111.9

        ANNUAL    121.6    150.4     123.7    137.1     110.9     112.8    111.6    112.4    107.4    112.0

  2002       I    126.5    153.7     121.5    140.6     113.0     111.2    111.5    111.3    115.7    111.6
  ----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

  2000       I      2.8      5.3       2.5      6.0       1.9       3.2      4.1      3.4     12.2      4.3
            II      5.6      5.7       0.1      8.4       5.3       2.7      1.1      2.3     13.0      3.4
           III      2.6      2.8       0.2      7.0       3.3       4.3      2.4      3.8     -9.8      2.2
            IV      0.7      0.3      -0.3      9.6       6.5       8.9      2.6      7.2    -38.0      1.6

        ANNUAL      3.1      4.8       1.7      6.3       2.8       3.1      2.7      3.0     -1.0      2.5

  2001       I      0.5      0.7       0.2      5.5       1.7       5.0      5.8      5.2    -27.8      1.8
            II      3.3      0.8      -2.4      6.1       2.8       2.7      7.0      3.8    -12.6      2.3
           III      0.9     -2.6      -3.5      4.7       4.0       3.8     11.2      5.7    -26.1      2.8
            IV     11.2      6.2      -4.5      3.6       3.9      -6.8     -8.5     -7.3     58.0     -3.2

        ANNUAL      2.3      1.1      -1.2      6.5       3.6       4.1      4.4      4.2    -19.0      1.8

  2002       I      6.7      5.4      -1.2      3.6       2.1      -2.9     -0.3     -2.2     15.5     -0.8
  ----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

  2000       I      2.4      5.1       2.7      4.9       1.6       2.5      3.3      2.7     -4.6      1.9
            II      3.6      5.6       2.0      6.0       2.6       2.3      3.0      2.5      2.9      2.5
           III      3.6      5.1       1.4      6.4       2.9       2.7      2.0      2.5      6.0      2.9
            IV      2.9      3.5       0.6      7.8       4.3       4.7      2.5      4.1     -8.2      2.9

        ANNUAL      3.1      4.8       1.7      6.3       2.8       3.1      2.7      3.0     -1.0      2.5

  2001       I      2.3      2.3       0.0      7.6       4.2       5.2      2.9      4.6    -17.8      2.2
            II      1.8      1.2      -0.6      7.0       3.6       5.2      4.4      5.0    -22.9      2.0
           III      1.3     -0.2      -1.5      6.5       3.8       5.1      6.6      5.5    -26.7      2.1
            IV      3.9      1.2      -2.6      5.0       3.1       1.1      3.6      1.7     -7.3      0.9

        ANNUAL      2.3      1.1      -1.2      6.5       3.6       4.1      4.4      4.2    -19.0      1.8

  2002       I      5.5      2.4      -2.9      4.5       3.2      -0.9      2.0     -0.1      4.2      0.2
  ----------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                        May 31, 2002
  r=revised                                                               Source: Bureau of Labor Statistics


SOURCES:  Output data are from the Bureau of Economic Analysis and the Census 
Bureau of the U.S. Department of Commerce; the Bureau of Labor Statistics, 
U.S. Department of Labor; and the Federal Reserve Board.  Compensation and 
hours data are from the Bureau of Labor Statistics and the Bureau of Economic 
Analysis.

RELIABILITY:  Productivity and cost measures are regularly revised as more 
complete information becomes available.  The measures are first published 
within 40 days of the close of the reference period; revisions appear 30 days 
later, and second revisions after an additional 60 days.  In the business 
sector, the third publication (second revision) of a quarterly index of 
output per hour of all persons has differed from the initial value by between 
-1.5 and +1.7 index points approximately 95 percent of the time.  This 
interval is based on the performance of this measure between the fourth 
quarter of 1995 and the fourth quarter of 2001.  



                                 Footnotes, Tables 1-6

(1)  Wages and salaries of employees plus employers' contributions for social 
     insurance and private benefit plans.  Except for nonfinancial 
     corporations, where there are no self-employed, data also include an 
     estimate of wages, salaries, and supplemental payments for the self-
     employed.

(2)  The change for recent quarters is based on the Consumer Price Index for 
     all urban consumers (CPI-U).  The trend from 1978-2001 is based on the 
     Consumer Price Index research series (CPI-U-RS).

(3)  Unit nonlabor payments include profits, capital consumption allowances, 
     interest, rental income of persons, and indirect taxes.

(4)  Current dollar output divided by the output index.

(5)  Quarterly changes:  Percent change compounded at annual rate from the 
     original data rather than index numbers.  Annual changes:  Percent 
     change between annual average levels.

(6)  Unit nonlabor costs include capital consumption allowances, interest, 
     rental income of persons, and indirect taxes.  For nonfinancial 
     corporations, rental income of persons is zero by definition.

(7)  Total unit costs are the sum of unit labor and nonlabor costs.

(8)  Unit profits include corporate profits with inventory valuation and 
     capital consumption adjustments.