USDL 99-158
TRANSMISSION OF THIS
MATERIAL IS EMBARGOED
UNTIL 10:00 A.M. EDT,
TUESDAY, JUNE 8, 1999.
                        
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  information:          (202) 606-5606
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                           PRODUCTIVITY AND COSTS
                             First Quarter 1999


     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 1999.  The revised seasonally adjusted
annual rates of productivity change in the first quarter were:

               4.1 percent in the business sector, and
               3.5 percent in the nonfarm business sector.

In both sectors, the revised first-quarter gains in output were smaller than
those reported initially, and the gains in hours were unchanged; therefore,
the revisions decreased the first-quarter 1999 productivity gains.  These
data do not reflect the employment benchmark of the BLS Current Establishment
Statistics released on June 4.

     In manufacturing, the revised productivity changes in the first quarter
were:
               6.2 percent in manufacturing,
               8.7 percent in durable goods manufacturing, and
               2.8 percent in nondurable goods manufacturing.

     The increase in manufacturing productivity reflected a 1.6-percent rise
in output and a drop of 4.4 percent in hours worked.  The productivity
increase was larger than the 5.3-percent increase recorded in the fourth
quarter of 1998.  Output and hours in manufacturing, which includes about 17
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 1999 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            4.1       4.6       0.4       5.0       3.5       0.9
Nonfarm business    3.5       4.4       0.9       4.2       2.6       0.7
Manufacturing       6.2       1.6      -4.4       5.1       3.5      -1.1
  Durable           8.7       1.8      -6.3       5.0       3.5      -3.4
  Nondurable        2.8       1.3      -1.5       5.5       3.9       2.6
--------------------------------------------------------------------------
                      Percent change from same quarter a year ago
Business            2.9       4.4       1.5       4.3       2.6       1.4
Nonfarm business    2.6       4.4       1.7       4.0       2.3       1.4
Manufacturing       5.0       2.3      -2.6       3.5       1.8      -1.4
  Durable           8.1       4.9      -2.9       2.8       1.1      -4.8
  Nondurable        1.3      -0.9      -2.1       4.7       3.0       3.4
--------------------------------------------------------------------------


Business

     From the fourth quarter of 1998 to the first quarter of 1999, business
productivity increased 4.1 percent, reflecting increases of 4.6 percent in
output and 0.4 percent in hours of all persons (seasonally adjusted annual
rates).  The increase in productivity was smaller than the 4.6 percent rise
recorded in the previous quarter, when output rose 7.3 percent and hours grew
2.6 percent (table 1).

     Hourly compensation increased 5.0 percent during the first quarter of
1999.  This measure of compensation includes wages and salaries, supplements,
employer contributions to employee benefit plans, and taxes.  Unit labor
costs, which reflect changes in both hourly compensation and productivity,
increased 0.9 percent during the first quarter after declining 0.1 percent
during the fourth quarter of 1998.

     Real hourly compensation, which takes into account changes in the
Consumer Price Index for All Urban Consumers (CPI-U), rose at a 3.5 percent
annual rate in the first quarter.  This was the seventh consecutive quarter
in which real hourly compensation increased 2.0 percent or more (seasonally
adjusted annual rates).

     The implicit price deflator for business output, which reflects changes
in unit labor costs and unit nonlabor payments, increased 0.8 percent in the
first quarter of 1999.  This increase was larger than any posted during
calendar year 1998.


Nonfarm business

     Productivity rose 3.5 percent in nonfarm business during the first
quarter of 1999, reflecting an increase of 4.4 percent in output and a 0.9
percent rise in hours of all persons.  All of these increases were smaller
than those of the previous quarter, when nonfarm productivity rose 4.3
percent, as output increased 7.4 percent and hours grew 2.9 percent (table 2).

     The first-quarter increase in hourly compensation, 4.2 percent, was
similar to the 4.0 percent rise reported for the fourth quarter.  When the
rise in the CPI-U is taken into account, first-quarter gains in real hourly
compensation in the first quarter, 2.6 percent, were larger than those of the
previous quarter, when they grew 2.2 percent.
     
     The 0.7 percent increase in unit labor costs in the nonfarm business
sector in the first quarter followed a 0.4 percent decline in the fourth
quarter of 1998.  The implicit price deflator for nonfarm business output
rose 1.1 percent in the first quarter of 1999.


Manufacturing

     Productivity increased 6.2 percent in manufacturing in the first
quarter, as output rose 1.6 percent and hours of all persons fell 4.4 percent
(seasonally adjusted annual rates).  In durable goods industries,
productivity rose sharply, 8.7 percent, during the first quarter.  This
reflected a 1.8-percent increase in output during the quarter and a drop of
6.3 percent in hours worked in the industry.  In nondurable goods industries,
productivity rose 2.8 percent as output rose 1.3 percent and hours decreased
1.5 percent (tables 3, 4, and 5).

     Hourly compensation of all manufacturing workers rose 5.1 percent during
the first quarter.  Hourly compensation increased 5.0 percent in durable
goods industries and 5.5 percent in nondurable goods industries.  Real hourly
compensation, which takes account of changes in consumer prices, rose 3.5
percent for all manufacturing workers.

     The 6.2-percent gain in manufacturing productivity in the first quarter
of 1999 was more than enough to offset the 5.1-percent increase in hourly
compensation.  As a result, unit labor costs fell 1.1 percent during the
quarter, the fourth consecutive drop in this measure.  In the durable goods
sector, unit labor costs dropped 3.4 percent during the quarter.  In the
smaller nondurable goods sector, gains in hourly compensation exceeded those
in labor productivity, and unit labor costs rose 2.6 percent.  Unit labor
costs in nondurable manufacturing have risen in every quarter since the third
quarter of 1996.


Nonfinancial corporations

     Preliminary first-quarter 1999 measures of productivity and costs for
nonfinancial corporations also were announced today (tables B and 6).
Productivity rose 4.2 percent in the first quarter, as output increased 5.7
percent and employee-hours grew 1.5 percent (seasonally adjusted annual
rates).  Productivity growth in the first quarter was higher than in the
previous quarter, when it increased 3.3 percent.  Output and hours grew 5.5
and 2.1 percent, respectively, in the fourth quarter.  The sector includes
all corporations doing business in the United States, except those classified
as depository institutions, nondepository institutions, security and
commodity brokers, insurance carriers, regulated investment offices, small
business investment offices, and real estate investment trusts.
     

----------------------------------------------------------------------------
Table B.  Nonfinancial corporations: Preliminary first-quarter 1999
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
1999 I    4.2      5.7     1.5     4.7      3.2      0.5     7.7      0.2
----------------------------------------------------------------------------
                 Percent change from same quarter a year ago
1999 I    3.7      5.4     1.6     4.4      2.7      0.6    -2.7     -0.1
----------------------------------------------------------------------------


     Hourly compensation increased 4.7 percent during the first quarter, and
real hourly compensation rose 3.2 percent when the rise in the CPI-U is
taken into account.  The increase in real hourly compensation was the
largest in the sector since a 3.9 percent increase was posted in the first
quarter of 1992.

     Unit labor costs for nonfinancial corporations increased 0.5 percent in
the first quarter, and unit profits increased 7.7 percent.  In the previous
quarter, unit labor costs increased 0.8 percent, while unit profits fell
12.9 percent. The implicit price deflator for nonfinancial corporate output
rose 0.2 percent in the first quarter after having fallen 0.4 percent one
quarter earlier.


REVISED MEASURES

     Current and previous measures for the first quarter of 1999 for
business, nonfarm business, and manufacturing are compared in table C.  In
the business and nonfarm business sectors, productivity and output increased
less, and unit labor costs increased more, than originally reported on May 11,
based on information then available.  In manufacturing, productivity and
output grew more rapidly than originally reported.


-------------------------------------------------------------------------
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 1999
Business:                                                           
  Previous          4.7       5.1      0.4       5.2        3.7      0.4
  Current           4.1       4.6      0.4       5.0        3.5      0.9
Nonfarm business:                                                   
  Previous          4.0       5.0      0.9       4.3        2.8      0.3
  Current           3.5       4.4      0.9       4.2        2.6      0.7
Manufacturing:                                                      
  Previous          5.8       1.3     -4.3       4.9        3.3     -0.9
  Current           6.2       1.6     -4.4       5.1        3.5     -1.1
-------------------------------------------------------------------------

                                      
                                      
                              Next release date

     The next release of Productivity and Costs is scheduled for 10:00 AM
EDT, Thursday, Aug. 5, 1999.  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 BLS
establishment survey data.  All employment and hours series will incorporate
new information on seasonal patterns.



                                      
                               TECHNICAL NOTES
                                      
Labor Hours: Hours data for the labor productivity and costs 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.
Average weekly paid hours of nonproduction and supervisory workers are
estimated by the Office of Productivity and Technology.  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 76 percent of
the value of GDP in 1992. Nonfarm business, which also excludes farming,
accounted for about 75 percent of GDP in 1992.
     Annual manufacturing indexes 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; non-
electrical machinery; industrial and commercial machinery and computer
equipment; electronic and other electrical equipment; transportation
equipment; instruments; lumber and lumber products; furniture and fixtures;
stone, clay, and glass and concrete products; and miscellaneous manufactures.
Nondurables include: Food and kindred 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 constructed by
excluding from GDP the following outputs: 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 52 percent of the value of GDP in 1992.

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: 202-606-STAT; TDD phone: 202-606-5897;
TDD message referral phone number: 1-800-326-2577.


  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

  1997       I     104.4      117.8     112.9     113.2        99.5      108.5       112.4      109.9
            II     104.8      119.1     113.6     113.9        99.8      108.7       113.2      110.3
           III     105.8      120.6     114.0     115.0       100.3      108.8       113.8      110.6
            IV     106.0      121.7     114.8     116.5       101.1      109.9       112.4      110.8

        ANNUAL     105.2      119.8     113.8     114.7       100.3      109.0       112.9      110.4

  1998       I     107.1      123.7     115.6     117.9       102.1      110.2       112.2      110.9
            II     107.1      124.3     116.1     119.1       102.7      111.2       110.5      111.0
           III     107.8      125.5     116.4     120.2       103.2      111.5       110.4      111.1
            IV     109.0      127.7     117.2     121.5       103.9      111.5       110.7      111.2

        ANNUAL     107.7      125.3     116.3     119.7       103.0      111.1       110.9      111.0

  1999       I    r110.1     r129.2     117.3    r123.0       104.8     r111.7      r110.8      111.4
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1997       I       0.7        4.9       4.2       3.5         1.0        2.8         2.1        2.5
            II       1.8        4.7       2.8       2.4         1.2        0.6         2.8        1.4
           III       3.6        4.9       1.3       4.0         2.0        0.4         2.3        1.1
            IV       0.8        3.6       2.7       5.2         3.3        4.4        -4.8        0.9

        ANNUAL       1.5        4.6       3.1       3.6         1.2        2.1         1.0        1.7

  1998       I       4.1        7.1       2.8       5.0         3.9        0.8        -0.7        0.2
            II       0.1        1.7       1.6       4.1         2.3        4.0        -6.0        0.3
           III       2.6        4.0       1.4       3.7         2.0        1.0        -0.4        0.5
            IV       4.6        7.3       2.6       4.4         2.7       -0.1         1.1        0.3

        ANNUAL       2.4        4.6       2.2       4.4         2.8        2.0        -1.8        0.6

  1999       I      r4.1       r4.6       0.4      r5.0        r3.5       r0.9        r0.6       r0.8
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1997       I       1.4        4.7       3.3       4.0         1.0        2.6         0.5        1.8
            II       1.0        4.3       3.3       3.2         0.9        2.2         0.9        1.8
           III       1.8        4.9       3.0       3.3         1.0        1.4         2.0        1.6
            IV       1.7        4.5       2.8       3.8         1.9        2.0         0.6        1.5

        ANNUAL       1.5        4.6       3.1       3.6         1.2        2.1         1.0        1.7

  1998       I       2.6        5.1       2.4       4.1         2.6        1.5        -0.2        0.9
            II       2.1        4.3       2.1       4.6         2.9        2.4        -2.4        0.6
           III       1.9        4.1       2.1       4.5         2.9        2.5        -3.0        0.5
            IV       2.9        5.0       2.1       4.3         2.7        1.4        -1.5        0.3

        ANNUAL       2.4        4.6       2.2       4.4         2.8        2.0        -1.8        0.6

  1999       I      r2.9       r4.4       1.5      r4.3         2.6       r1.4       r-1.2       r0.5
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       June 8, 1999
  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

  1997       I     104.1      117.9     113.3     112.9        99.2      108.5       112.9      110.0
            II     104.5      119.2     114.1     113.6        99.5      108.7       113.7      110.4
           III     105.4      120.6     114.5     114.6        99.9      108.8       114.6      110.8
            IV     105.6      121.8     115.3     116.0       100.7      109.8       113.3      111.1

        ANNUAL     104.9      119.9     114.3     114.3        99.9      108.9       113.6      110.6

  1998       I     106.6      123.9     116.3     117.4       101.6      110.1       113.2      111.2
            II     106.6      124.4     116.7     118.5       102.1      111.1       111.6      111.3
           III     107.3      125.6     117.1     119.7       102.7      111.5       111.4      111.5
            IV     108.5      127.9     117.9     120.9       103.3      111.4       111.7      111.5

        ANNUAL     107.2      125.5     117.0     119.1       102.5      111.1       112.0      111.4

  1999       I    r109.4     r129.3     118.2     122.1       104.0     r111.6      r112.3     r111.9
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1997       I       0.1        4.5       4.4       3.7         1.1        3.5         2.3        3.1
            II       1.6        4.5       2.8       2.4         1.2        0.7         2.8        1.5
           III       3.4        4.8       1.3       3.8         1.8        0.3         3.1        1.4
            IV       0.9        4.0       3.0       4.9         3.0        4.0        -4.3        0.9

        ANNUAL       1.2        4.5       3.2       3.5         1.2        2.3         1.3        1.9

  1998       I       3.6        7.0       3.3       4.7         3.7        1.1        -0.3        0.6
            II       0.3        1.7       1.4       4.1         2.2        3.7        -5.7        0.2
           III       2.5        4.0       1.4       3.9         2.3        1.4        -0.5        0.7
            IV       4.3        7.4       2.9       4.0         2.2       -0.4         1.2        0.2

        ANNUAL       2.2        4.6       2.4       4.2         2.6        2.0        -1.4        0.7

  1999       I      r3.5       r4.4       0.9      r4.2        r2.6       r0.7        r1.9       r1.1
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1997       I       1.0        4.6       3.5       3.9         0.9        2.9         0.5        2.0
            II       0.7        4.1       3.4       3.2         0.8        2.5         1.3        2.0
           III       1.5        4.7       3.1       3.2         1.0        1.7         2.6        2.0
            IV       1.5        4.4       2.9       3.7         1.8        2.1         0.9        1.7

        ANNUAL       1.2        4.5       3.2       3.5         1.2        2.3         1.3        1.9

  1998       I       2.4        5.1       2.6       3.9         2.4        1.5         0.3        1.1
            II       2.0        4.4       2.3       4.4         2.7        2.3        -1.9        0.8
           III       1.8        4.1       2.3       4.4         2.8        2.6        -2.7        0.6
            IV       2.7        5.0       2.3       4.2         2.6        1.5        -1.4        0.4

        ANNUAL       2.2        4.6       2.4       4.2         2.6        2.0        -1.4        0.7

  1999       I      r2.6       r4.4       1.7      r4.0        r2.3       r1.4       r-0.8       r0.6
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       June 8, 1999
  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

  1997       I            116.7        122.5        105.0        113.1           99.4          97.0
            II            118.1        124.5        105.4        114.2          100.0          96.7
           III            120.7        126.8        105.1        115.7          100.9          95.9
            IV            121.9        129.1        105.9        118.0          102.4          96.8

        ANNUAL            119.4        125.7        105.3        115.3          100.8          96.6

  1998       I            122.4        129.9        106.1        119.2          103.2          97.3
            II            123.6        130.7        105.7        119.9          103.3          97.0
           III            125.0        130.8        104.6        120.9          103.7          96.7
            IV            126.7        132.4        104.5        121.8          104.1          96.2

        ANNUAL            124.4        130.9        105.2        120.4          103.7          96.8

  1999       I           r128.6       r132.9       r103.3       r123.4          105.0         r95.9
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1997       I              4.1          7.2          3.0          4.4            1.8           0.4
            II              5.0          6.6          1.5          3.7            2.4          -1.3
           III              9.0          7.7         -1.2          5.7            3.7          -3.1
            IV              4.3          7.5          3.1          8.0            6.1           3.6

        ANNUAL              4.9          6.5          1.6          4.2            1.8          -0.7

  1998       I              1.6          2.4          0.8          4.0            3.0           2.4
            II              3.9          2.5         -1.4          2.6            0.8          -1.3
           III              4.7          0.4         -4.1          3.2            1.5          -1.5
            IV              5.3          4.8         -0.5          3.3            1.5          -1.9

        ANNUAL              4.2          4.2         -0.1          4.5            2.9           0.2

  1999       I             r6.2         r1.6        r-4.4         r5.1           r3.5         r-1.1
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1997       I              4.2          6.7          2.3          3.6            0.6          -0.6
            II              4.4          5.9          1.5          3.5            1.1          -0.8
           III              5.3          6.3          1.0          4.1            1.8          -1.1
            IV              5.6          7.3          1.6          5.4            3.5          -0.1

        ANNUAL              4.9          6.5          1.6          4.2            1.8          -0.7

  1998       I              4.9          6.0          1.1          5.3            3.8           0.4
            II              4.7          5.0          0.3          5.1            3.4           0.4
           III              3.6          3.2         -0.4          4.4            2.8           0.8
            IV              3.9          2.5         -1.3          3.3            1.7          -0.6

        ANNUAL              4.2          4.2         -0.1          4.5            2.9           0.2

  1999       I             r5.0         r2.3         -2.6          3.5            1.8          -1.4
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                June 8, 1999
  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

  1997       I            125.1        136.9        109.4        110.7           97.2          88.5
            II            127.5        140.3        110.1        111.6           97.8          87.6
           III            131.5        144.6        110.0        113.2           98.7          86.1
            IV            134.0        148.3        110.7        115.9          100.6          86.5

        ANNUAL            129.5        142.5        110.0        112.9           98.7          87.1

  1998       I            134.6        149.6        111.1        116.7          101.0          86.7
            II            136.8        151.3        110.6        117.1          100.9          85.6
           III            139.6        153.1        109.7        117.6          100.9          84.2
            IV            142.5        156.3        109.7        118.5          101.3          83.2

        ANNUAL            138.3        152.6        110.3        117.5          101.1          84.9

  1999       I           r145.5       r157.0        107.9       r120.0         r102.2          82.5
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1997       I              4.6         10.4          5.5          4.0            1.5          -0.6
            II              7.9         10.4          2.3          3.5            2.3          -4.1
           III             13.0         12.8         -0.2          5.5            3.5          -6.6
            IV              7.8         10.7          2.7         10.2            8.2           2.2

        ANNUAL              6.6          9.4          2.7          3.9            1.5          -2.6

  1998       I              2.0          3.5          1.5          2.6            1.6           0.6
            II              6.6          4.6         -1.8          1.5           -0.3          -4.7
           III              8.5          4.8         -3.5          1.6           -0.1          -6.4
            IV              8.5          8.6          0.1          3.2            1.5          -4.9

        ANNUAL              6.8          7.0          0.2          4.1            2.5          -2.5

  1999       I             r8.7         r1.8        r-6.3         r5.0           r3.5         r-3.4
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1997       I              5.4          9.3          3.7          3.0            0.1          -2.3
            II              5.5          8.1          2.4          2.9            0.6          -2.4
           III              7.2          9.3          2.0          3.6            1.4          -3.3
            IV              8.3         11.1          2.5          5.8            3.9          -2.3

        ANNUAL              6.6          9.4          2.7          3.9            1.5          -2.6

  1998       I              7.6          9.3          1.5          5.4            3.9          -2.0
            II              7.3          7.8          0.5          4.9            3.2          -2.2
           III              6.2          5.9         -0.3          3.9            2.3          -2.1
            IV              6.4          5.4         -0.9          2.2            0.7          -3.9

        ANNUAL              6.8          7.0          0.2          4.1            2.5          -2.5

  1999       I             r8.1         r4.9         -2.9          2.8            1.1          -4.8
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                June 8, 1999
  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

  1997       I            109.8        108.8         99.1        116.2          102.1         105.9
            II            110.2        109.3         99.2        117.3          102.7         106.4
           III            111.4        109.7         98.5        118.9          103.7         106.8
            IV            111.3        110.7         99.4        120.3          104.4         108.0

        ANNUAL            110.7        109.6         99.1        118.2          103.3         106.8

  1998       I            111.7        111.0         99.4        122.1          105.7         109.3
            II            111.9        111.0         99.2        123.5          106.4         110.4
           III            111.9        109.6         97.9        125.2          107.4         111.8
            IV            112.4        109.7         97.6        126.2          107.8         112.3

        ANNUAL            112.0        110.3         98.5        124.2          106.9         111.0

  1999       I           r113.1       r110.1         97.3        127.9          108.9        r113.0
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1997       I              3.9          3.4         -0.5          4.6            2.0           0.7
            II              1.5          1.9          0.4          3.8            2.6           2.2
           III              4.3          1.7         -2.5          5.7            3.7           1.3
            IV             -0.1          3.6          3.7          4.6            2.7           4.7

        ANNUAL              3.0          3.1          0.1          4.5            2.1           1.4

  1998       I              1.3          1.1         -0.2          6.3            5.3           5.0
            II              0.6         -0.2         -0.8          4.4            2.5           3.8
           III              0.3         -4.7         -5.0          5.7            4.0           5.4
            IV              1.5          0.2         -1.3          3.3            1.6           1.8

        ANNUAL              1.2          0.6         -0.5          5.1            3.5           3.9

  1999       I             r2.8         r1.3        r-1.5         r5.5            3.9          r2.6
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1997       I              3.3          3.7          0.4          4.3            1.3           1.0
            II              3.2          3.4          0.2          4.2            1.9           1.0
           III              3.1          2.6         -0.6          4.6            2.4           1.5
            IV              2.4          2.6          0.2          4.7            2.8           2.2

        ANNUAL              3.0          3.1          0.1          4.5            2.1           1.4

  1998       I              1.7          2.1          0.3          5.1            3.6           3.3
            II              1.5          1.5          0.0          5.3            3.6           3.7
           III              0.5         -0.1         -0.6          5.2            3.6           4.7
            IV              0.9         -0.9         -1.8          4.9            3.3           4.0

        ANNUAL              1.2          0.6         -0.5          5.1            3.5           3.9

  1999       I             r1.3         -0.9         -2.1          4.7            3.0          r3.4
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                June 8, 1999
  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

  1997       I    108.9    124.3     114.1    111.8      98.2     102.6     97.3    101.2    156.6    106.2
            II    109.6    126.2     115.2    112.5      98.5     102.6     97.1    101.2    157.3    106.3
           III    111.1    128.7     115.9    113.6      99.0     102.3     96.4    100.7    161.7    106.3
            IV    111.3    130.2     117.0    115.0      99.8     103.3     95.7    101.3    155.7    106.3

        ANNUAL    110.3    127.3     115.4    113.3      99.0     102.7     96.6    101.1    157.8    106.3

  1998       I    112.1    132.1     117.9    116.0     100.4     103.5     95.4    101.4    153.5    106.2
            II    112.9    133.4     118.1    117.3     101.1     103.9     95.5    101.7    150.4    106.1
           III    114.1    135.4     118.6    118.5     101.7     103.8     95.2    101.6    151.8    106.1
            IV    115.1    137.2     119.3    119.7     102.3     104.1     96.2    102.0    146.6    106.0

        ANNUAL    113.6    134.5     118.4    118.0     101.6     103.8     95.6    101.7    150.5    106.1

  1999       I    116.2    139.1     119.7    121.1     103.1     104.2     94.9    101.8    149.4    106.1
  ----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

  1997       I      1.3      5.9       4.5      3.4       0.8       2.0     -0.6      1.4      3.2      1.6
            II      2.3      6.3       3.9      2.5       1.3       0.2     -0.6      0.0      1.7      0.2
           III      5.6      8.2       2.5      4.1       2.2      -1.3     -3.1     -1.8     11.8      0.0
            IV      1.0      4.8       3.8      5.0       3.1       4.0     -2.7      2.3    -14.1     -0.1

        ANNUAL      2.5      6.1       3.6      3.5       1.1       1.0     -1.3      0.4      2.1      0.6

  1998       I      2.7      5.9       3.2      3.6       2.6       0.9     -1.1      0.4     -5.6     -0.4
            II      3.1      4.0       0.9      4.6       2.7       1.5      0.1      1.1     -7.7     -0.1
           III      4.4      6.1       1.7      4.0       2.4      -0.3     -0.9     -0.4      3.6      0.1
            IV      3.3      5.5       2.1      4.2       2.4       0.8      4.0      1.6    -12.9     -0.4

        ANNUAL      3.0      5.6       2.6      4.1       2.5       1.1     -1.0      0.6     -4.6     -0.1

  1999       I      4.2      5.7       1.5      4.7       3.2       0.5     -5.2     -0.9      7.7      0.2
  ----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

  1997       I      2.4      5.9       3.5      3.7       0.8       1.3     -1.4      0.6      1.9      0.8
            II      2.1      5.8       3.6      3.1       0.8       1.0     -0.8      0.5      2.0      0.7
           III      2.8      6.4       3.5      3.2       1.0       0.4     -1.2      0.0      4.2      0.5
            IV      2.5      6.3       3.6      3.8       1.9       1.2     -1.8      0.5      0.2      0.4

        ANNUAL      2.5      6.1       3.6      3.5       1.1       1.0     -1.3      0.4      2.1      0.6

  1998       I      2.9      6.3       3.3      3.8       2.3       0.9     -1.9      0.2     -2.0     -0.1
            II      3.1      5.7       2.6      4.3       2.7       1.2     -1.7      0.5     -4.3     -0.1
           III      2.8      5.2       2.4      4.3       2.7       1.5     -1.1      0.8     -6.2     -0.1
            IV      3.4      5.4       2.0      4.1       2.5       0.7      0.5      0.7     -5.8     -0.2

        ANNUAL      3.0      5.6       2.6      4.1       2.5       1.1     -1.0      0.6     -4.6     -0.1

  1999       I      3.7      5.4       1.6      4.4       2.7       0.6     -0.5      0.3     -2.7     -0.1
  ----------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                        June 8, 1999
  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
-1.2 and +1.4 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 1998.



                            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)  Compensation per hour adjusted for changes in the Consumer Price Index
     for All Urban Consumers.

(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.