Internet address: http://stats.bls.gov            USDL: 99-235
Technical information: (202) 606-5654             For Release: 10:00 A.M. EDT
Media contact: (202) 606-5902                     Friday, August 27, 1999




INTERNATIONAL COMPARISONS OF MANUFACTURING PRODUCTIVITY
AND UNIT LABOR COST TRENDS, 1998

In the United States, labor productivity in manufacturing 
increased by 4.1 percent in 1998, the same increase as in 1997, 
according to preliminary data from the Bureau of Labor Statistics, U.S. 
Department of Labor.  Although below Germany's 4.3 percent gain in 
productivity, it was the second highest growth rate among the 11 
countries being compared.  Other countries showing significant 
increases in labor productivity (output per hour) were France, Sweden, 
and Norway.  (See table A and chart 1.)

These estimates represent preliminary estimates for 1998, as well 
as revisions to the estimates through 1997 contained in a March 1999 
news release (USDL: 99-63).  The foreign estimates are based on data 
available as of June 1999;  the U.S. estimates are based on data 
available in August 1999.  The U.S. output series used for 
international comparisons differs from the manufacturing series that 
BLS publishes quarterly on U.S. productivity and costs.

PRINTED COPY CONTAINS CHART AT THIS POINT:
Chart 1. Percent change in manufacturing output per hour, 1998
 
Unit labor costs - the cost of labor input required to produce one 
unit of output - are computed as the ratio of labor costs in nominal 
terms divided by real output.  Unit labor costs also can be expressed as 
the ratio of hourly compensation to labor productivity.  An increase in 
productivity represents a decrease in the amount of labor input needed 
to produce a unit of output; thus, an increase in productivity can 
offset an increase in compensation per hour in its effects on unit labor 
costs.

In 1998, unit labor costs in manufacturing, expressed in national 
currency units, rose in 7 of the 14 countries being compared and 
declined in the other 7.  The biggest increases were in the United 
Kingdom (up 4.7 percent) and Norway (up 3.9 percent).  The biggest 
declines occurred in Korea (down 7.7 percent) and in Germany (down 3.3 
percent).

In order to properly assess international competitiveness trends 
in manufactured products, it is essential to take into account changes 
in exchange rates.  The exchange rates of all the currencies, except 
the U.K. pound, declined against the U.S. dollar during 1998.  The 
biggest drops took place in East Asia - Japanese yen (down 7.6 
percent), Taiwanese dollar (down 14.2 percent), and Korean won (down 
32.1 percent).  (See table A.)

The result of these exchange rate movements was that 1998 unit 
labor costs, expressed in U.S. dollars, declined in all the countries 
except the U.S. and the U.K.  The steepest declines occurred in Asia, 
especially in Korea and Taiwan.  Dollar-denominated unit labor costs 
rose by 0.2 percent in the U.S. and by 5.9 percent in the U.K.  (See 
chart 2.)

PRINTED COPY CONTAINS CHART AT THIS POINT:
Chart 2. Percent change in manufacturing unit labor costs (U.S. 
dollar basis), 1998
 
The 1998 measures of changes in manufacturing productivity, unit 
labor costs, and related variables are summarized in table A below.  
Output and unit labor cost data are presented for all 14 economies.  
Comparable productivity data have not been developed for Korea and 
Taiwan.  Productivity data for Denmark are not shown because the Danish 
national statistical agency has not produced recent data on hours 
worked.  (See technical notes.)

Table A.  Manufacturing productivity and labor costs in 14 countries or areas
Percent change, 1997-98


                 Output                 Emp-    Ave-    Hourly  Unit labor costs
Country          per     Out-           loy-    rage    compen- National U.S.    Exchange
or area          hour    put     Hours  ment    hours   sation  currency dollars rate (1)


United States    4.1     4.2     0.1     0.5   - 0.4     4.3     0.2      0.2    ---

Canada           0.7     3.9     3.2     3.7   - 0.6     3.9     3.2    - 3.7   - 6.7
Japan            0.3   - 5.5   - 5.8   - 4.2   - 1.7     0.7     0.4    - 7.2   - 7.6
Korea (2)        NA    - 7.2     NA      NA      NA      NA    - 7.7    -37.4   -32.1
Taiwan (2)       NA      3.9     NA      NA      NA      NA    - 1.1    -15.2   -14.2
Belgium          0.5     2.6     2.0     1.8     0.2     0.6     0.1    - 1.3   - 1.4
Denmark (3)      NA      4.6     NA      2.3     NA      NA    - 0.4    - 1.8   - 1.4
France           3.4     3.9     0.5     0.2     0.3     1.4   - 1.9    - 2.9   - 1.0

Germany (4)      4.3     5.2     0.8   - 0.2     1.1     0.8   - 3.3    - 4.7   - 1.4
Italy            0.2     1.9     1.7     1.9   - 0.2   - 0.9   - 1.1    - 3.0   - 1.9
Netherlands      1.6     2.4     0.7     0.8   - 0.1     0.2   - 1.4    - 2.9   - 1.6
Norway           2.1     2.8     0.7     0.6     0.0     6.1     3.9    - 2.5   - 6.2
Sweden           2.2     4.4     2.2     2.3   - 0.1     2.7     0.6    - 3.3   - 3.9
United Kingdom   1.0     0.3   - 0.7   - 0.4   - 0.3     5.7     4.7      5.9     1.2

(1)  Value of foreign currency relative to the U.S. dollar.
(2)  Productivity not available because adequate labor input measures have not been developed.
(3)  Labor input data have not been produced for 1994-1998 by the Danish national statistical agency.
(4)  Data relate to the former West Germany.
NA=Not Available


Although the productivity measure relates output to the hours of 
persons employed in manufacturing, it does not measure the specific 
contributions of labor as a single factor of production.  Rather, it 
reflects the joint effects of many influences, including new 
technology, capital investment, capacity utilization, energy use, and 
managerial skills, as well as the skills and efforts of the work force.

Table B (pages 7-11) shows average annual percent changes for 
selected periods beginning in 1979.  Annual indexes of the data are in 
tables 1-14 (pages 17-30).

BOX: Notes about the measures
Notes about the measures

The measures in this news release are based on foreign data available to 
BLS as of June 1999 and U.S. data available as of August 1999.  
Revisions for 1997 and some earlier years were made to the measures for 
several countries to incorporate data not available at the time of the 
March 1999 news release (USDL: 99-63).

The U.S. manufacturing output measure

The output measure for the United States is the chain-weighted index of 
real gross product originating (deflated value-added), introduced by the 
Bureau of Economic Analysis (BEA), U.S. Department of Commerce, in 
August 1996.  This series is based on annually changing price weights.

The U.S. output data through 1997 were published by BEA in November 
1998.  The data incorporate the results of the comprehensive revision of 
the national income and product accounts (NIPAs) released in May 1997; 
the estimates for 1995-97 also incorporate the results of the annual 
NIPA revisions released in July 1998.

The estimate of output for 1998 was derived by BLS by extrapolating the 
1997 estimate forward, using the annual growth rate of the Federal 
Reserve Board's Industrial Production Index for Total Manufacturing.

The U.S. output series used for international comparisons differs from 
the manufacturing series that BLS publishes in its news releases on 
quarterly measures of U.S. productivity and costs. (See technical 
notes.)  While both series are based on annually-changing price weights, 
the quarterly U.S. manufacturing series is on a "sectoral" output basis 
rather than on a value added basis.  Sectoral output is gross output 
less intra-sector transactions. (See William Gullickson, "Measurement of 
productivity growth in U.S. manufacturing," Monthly Labor Review, July 
1995, pp. 13-28.)

New measures of National Accounts

Member states of the European Union are implementing the European System 
of Integrated National Accounts (ESA 95).  Some other countries are 
adopting the System of National Accounts recommended by the United 
Nations (SNA 93), the system on which ESA 95 is based.  Revisions due to 
these conversions to new systems are incorporated in this news release.

END OF BOX (Notes about the measures)


Productivity, output, and labor input

All the 11 countries for which output per hour was estimated 
showed an increase in productivity during 1998.  However, the rate of 
increase was less than in 1997 for most countries.  The exceptions were 
Norway, which reversed a slight productivity decline during 1997, and 
the United Kingdom, which showed a slightly higher rate of productivity 
growth.  The U.S. productivity increase in 1998 was the same as in 1997.  
The slowdown in the rate of labor productivity increase was especially 
marked for Belgium (from 6.1 percent in 1997 to 0.5 percent in 1998) and 
for Sweden (from 6.5 percent in 1997 to 2.2 percent in 1998).  The rate 
of annual productivity growth also declined by over 3 percentage points 
between 1997 and 1998 in Japan, France, and the Netherlands.  (See table 
B.)

The recent economic troubles in Asia are reflected in the 1998 
results for manufacturing output in Japan (down 5.5 percent) and Korea 
(down 7.2 percent).  For Korean manufacturing, this was the first 
recorded decline in output since 1980.  Taiwan reported an increase in 
manufacturing output of 3.9 percent, which, however, was below the 
average annual growth rate since 1979.

The 4.1 percent increase in United States labor productivity in 
1998 was due to an increase of 4.2 percent in manufacturing output which 
was offset by a 0.1 percent increase in hours worked.  Similarly, the 
1998 increases in labor productivity in France, Germany, the 
Netherlands, and Norway could largely be explained by increases in 
manufacturing output, as total hours worked in those countries increased 
by less than 1 percent.  In Canada, Belgium, and Italy, hours worked 
increased at approximately the same rate as output, resulting in only 
slight productivity increases.  Japan also recorded a slight 
productivity increase in 1998 (0.3 percent), due to a 5.5 percent 
decline in output accompanied by a 5.8 percent reduction in hours 
worked.  (See table A.)

Nine of the 11 countries for which estimates are available showed 
increases in aggregate manufacturing hours worked in 1998, which is 
contrary to a generally declining trend in hours over the last several 
years.  For the 1990-1998 period, total hours worked in manufacturing 
declined in 8 of the 11 countries, the exceptions being the U.S., 
Canada, and Norway.  (See table B.)

In a majority of the countries, the average hours worked per 
person changed little during 1998; most of the increases and decreases 
were less than 0.5 percent, similar to the recent 1990-1998 period.  
(See table B.)  In 1998, Japan, however, had a decline in average hours 
worked of 1.7 percent, as a 4.2 percent drop in manufacturing employment 
combined with a 5.8 percent decrease in total hours worked.  
Manufacturing employment also declined in Germany during 1998, but by 
only 0.2 percent, while hours worked grew by 0.8 percent.  The result 
was an increase in average hours worked of 1.1 percent.  The decline of 
0.4 percent in U.S. average hours was the result of a 0.5 percent 
increase in employment and a 0.1 increase in total hours worked.  (See 
table A.)

Hourly compensation and unit labor costs

In nominal terms, hourly compensation in U.S. manufacturing 
increased 4.3 percent in 1998, following a 4.0 percent rise in 1997.  
This was above the average annual U.S. increase since 1985, but below 
the 1979-98 annual average rise.  (See table B.)  Only Norway (6.1 
percent) and the U.K. (5.7 percent) reported larger increases in hourly 
compensation during 1998, expressed in their national currencies.  
Japan, Germany, Belgium, and the Netherlands had increases of less than 
1 percent.  Italy showed an actual 1998 decline in hourly compensation 
of 0.9 percent, due to 1.7 percent more hours worked accompanied by only 
a 0.8 percent increase in aggregate labor compensation.

Unit labor costs in U.S. manufacturing grew by 0.2 percent in 
1998, as the 4.1 percent increase in labor productivity did not quite 
offset the 4.3 percent increase in hourly compensation.  (See table A.)  
This increase in unit labor costs is equal to the U.S. yearly average 
change during the 1990-98 period and followed a 0.1 decline in 1997.  
(See table B.)

Overall, expressed in national currency units, 1998 unit labor 
costs were up in half of the 14 countries being compared and declined in 
the other half.  The biggest declines in unit labor costs occurred in 
Korea (down 7.7 percent) and in Germany (down 3.3 percent).  These two 
countries had registered even larger unit labor cost declines in 1997.

The biggest increases in unit labor costs in 1998, expressed in 
national currency units, occurred in the U.K. (4.7 percent), Norway (3.9 
percent), and Canada (3.2 percent), all three the result of significant 
jumps in hourly compensation, matched by only moderate growth in labor 
productivity.  (See table A.)  The U.K. and Norway also are the 
countries which had the greatest unit labor cost increases in 1997.  
(See table B.)

Unit labor costs in U.S. dollars

For the second successive year, the exchange rates of all the 
currencies except the U.K. pound declined against the U.S. dollar during 
1998.  The biggest drops took place in East Asia: Japanese yen (down 7.6 
percent), Taiwanese dollar (down 14.2 percent), and Korean won (down 
32.1 percent).  Some other currencies also showed significant declines: 
Canadian dollar (down 6.7 percent), Norwegian krone (down 6.2 percent), 
and Swedish krona (down 3.9 percent).  Currencies of other European 
countries also declined against the dollar, but more modestly, between 
1.0 and 1.9 percent.  This was a significant change from 1997, when most 
of these same currencies experienced double-digit declines against the 
dollar.  (See table B.)

The result of these exchange rate movements is that, as in 1997, 
1998 unit labor costs expressed in U.S. dollars declined in all the 
countries except the U.S. and the U.K.  (See chart 2 and table B.)  The 
steepest declines in U.S. dollar-denominated unit labor costs occurred 
in countries where declines in national currency-denominated unit labor 
costs were deepened by a steep depreciation of the exchange rate (Korea 
and Taiwan).  In a number of cases, the exchange rate depreciation was 
sufficiently significant to overcome an increase in national-currency 
unit labor costs and result in a large drop in unit labor costs 
expressed in U.S. dollars (Japan, Canada, Norway, and Sweden).  (See 
table A.)


Table B.  Output per hour, hourly compensation, unit labor costs, and related measures
Manufacturing, 14 countries or areas, 1979-98

Average annual rates of change1

Country         1979-98 1979-85 1985-90 1990-98 1995    1996    1997    1998
or area


Output per hour

United States    3.0     3.3     2.2     3.3     6.1     2.1     4.1     4.1

Canada           1.9     2.3     1.2     2.0     2.5    -1.4     3.4     0.7
Japan            3.5     3.5     4.3     3.0     7.4     5.9     3.8     0.3
Korea            NA      NA      NA      NA      NA      NA      NA      NA
Taiwan           NA      NA      NA      NA      NA      NA      NA      NA
Belgium          3.7     6.0     2.2     3.0     4.5     1.3     6.1     0.5
Denmark          NA      2.1     0.5     NA      NA      NA      NA      NA
France           3.5     3.0     3.4     3.9     5.5     0.5     7.2     3.4

Germany2         2.6     2.1     2.1     3.2     3.0     3.5     5.9     4.3
Italy            3.3     4.9     2.5     2.6     3.5     0.9     2.8     0.2
Netherlands      3.5     4.5     2.0     3.8     5.0     3.8     5.0     1.6
Norway           1.5     2.4     1.4     0.9     0.5     0.1    -0.1     2.1
Sweden           3.4     3.0     1.8     4.6     5.4     2.5     6.5     2.2
United Kingdom   3.3     4.1     4.1     2.2    -2.0    -1.4     0.5     1.0

                                                        Continued on next page


Table B.  Output per hour, hourly compensation, unit labor costs, and related measures
Manufacturing, 14 countries or areas, 1979-98

Average annual rates of change1

Country         1979-98 1979-85 1985-90 1990-98 1995    1996    1997    1998
or area


     Output

United States    2.7     2.0     2.2     3.4     6.6     1.7     5.9     4.2

Canada           2.1     1.4     1.8     2.8     5.0     1.2     6.5     3.9
Japan            3.1     4.7     4.8     1.0     5.5     6.1     3.0    -5.5
Korea            8.7     8.8    13.2     5.9    11.3     6.8     6.6    -7.2
Taiwan           6.4     8.1     7.0     4.9     6.0     4.5     6.6     3.9
Belgium          2.0     2.6     2.5     1.3     2.7     0.0     4.6     2.6
Denmark          2.0     2.9    -0.2     2.7     5.3     3.4     2.3     4.6
France           1.3    -0.4     2.6     1.8     4.6    -0.3     5.5     3.9

Germany2         0.8     0.2     2.3     0.2     0.2    -1.3     3.6     5.2
Italy            2.2     1.7     3.9     1.5     4.9    -0.5     3.5     1.9
Netherlands      2.3     1.8     3.1     2.2     3.5     2.6     5.0     2.4
Norway           0.6     0.6    -1.6     1.9     2.1     1.1     2.8     2.8
Sweden           2.5     2.2     1.2     3.6    12.5     2.2     5.5     4.4
United Kingdom   0.7    -1.2     3.4     0.5     1.5     0.4     1.0     0.3


  Total hours

United States   -0.3    -1.2     0.0     0.1     0.4    -0.4     1.8     0.1

Canada           0.2    -0.8     0.6     0.8     2.4     2.7     3.0     3.2
Japan           -0.3     1.1     0.5    -2.0    -1.8     0.2    -0.8    -5.8
Korea            NA      NA      NA      NA      NA      NA      NA      NA
Taiwan           NA      NA      NA      NA      NA      NA      NA      NA
Belgium         -1.6    -3.2     0.4    -1.7    -1.7    -1.3    -1.4     2.0
Denmark          NA      0.8    -0.6     NA      NA      NA      NA      NA
France          -2.1    -3.2    -0.8    -2.0    -0.9    -0.7    -1.6     0.5

Germany2        -1.8    -1.9     0.2    -2.9    -2.7    -4.7    -2.2     0.8
Italy           -1.1    -3.1     1.3    -1.0     1.3    -1.4     0.7     1.7
Netherlands     -1.2    -2.6     1.1    -1.6    -1.4    -1.2     0.0     0.7
Norway          -0.9    -1.8    -2.9     1.0     1.5     1.0     3.0     0.7
Sweden          -0.8    -0.8    -0.5    -1.0     6.7    -0.3    -1.0     2.2
United Kingdom  -2.5    -5.1    -0.6    -1.6     3.5     1.8     0.5    -0.7

                                                        Continued on next page


Table B.  Output per hour, hourly compensation, unit labor costs, and related measures
Manufacturing, 14 countries or areas, 1979-98

Average annual rates of change1

Country         1979-98 1979-85 1985-90 1990-98 1995    1996    1997    1998
or area


   Employment

United States   -0.6    -1.4    -0.1    -0.2     1.1    -0.3     1.0     0.5

Canada           0.1    -0.8     0.4     0.5     2.9     1.4     2.8     3.7
Japan            0.2     1.2     0.8    -0.9    -2.5    -0.6    -0.1    -4.2
Korea            NA      NA      NA      NA      NA      NA      NA      NA
Taiwan           NA      NA      NA      NA      NA      NA      NA      NA
Belgium         -1.5    -2.6    -0.3    -1.5    -0.6    -1.7    -1.5     1.8
Denmark          0.1     1.0    -0.2    -0.5     2.0    -1.2     1.6     2.3
France          -1.7    -2.2    -0.9    -1.9    -0.3    -1.0    -1.3     0.2

Germany2        -1.1    -1.1     1.1    -2.4    -2.2    -3.1    -2.3    -0.2
Italy           -1.2    -2.9     0.3    -0.9     1.2    -0.6     0.3     1.9
Netherlands     -1.0    -2.3     1.2    -1.5    -1.7    -1.1     0.4     0.8
Norway          -0.9    -1.8    -2.7     0.9     2.4     1.6     3.4     0.6
Sweden          -1.4    -1.2    -0.8    -2.1     4.8    -0.7    -1.1     2.3
United Kingdom  -2.4    -4.8    -0.8    -1.6     2.5     1.8     0.5    -0.4


 Average hours

United States    0.2     0.2     0.1     0.3    -0.7    -0.1     0.7    -0.4

Canada           0.2     0.0     0.2     0.3    -0.5     1.3     0.2    -0.6
Japan           -0.5     0.0    -0.3    -1.0     0.7     0.8    -0.6    -1.7
Korea            NA      NA      NA      NA      NA      NA      NA      NA
Taiwan           NA      NA      NA      NA      NA      NA      NA      NA
Belgium         -0.1    -0.6     0.7    -0.1    -1.1     0.4     0.1     0.2
Denmark          NA     -0.3    -0.5     NA      NA      NA      NA      NA
France          -0.4    -1.1     0.1    -0.1    -0.6     0.3    -0.3     0.3

Germany2        -0.7    -0.8    -0.9    -0.5    -0.5    -1.6     0.2     1.1
Italy            0.2    -0.1     1.0    -0.1     0.1    -0.8     0.4    -0.2
Netherlands     -0.2    -0.3    -0.2    -0.1     0.3    -0.1    -0.4    -0.1
Norway          -0.1     0.0    -0.2     0.0    -0.9    -0.6    -0.4     0.0
Sweden           0.6     0.4     0.3     1.1     1.8     0.4     0.1    -0.1
United Kingdom   0.0    -0.3     0.2     0.0     1.0     0.1     0.0    -0.3

                                                        Continued on next page


Table B.  Output per hour, hourly compensation, unit labor costs, and related measures
Manufacturing, 14 countries or areas, 1979-98

Average annual rates of change1

Country         1979-98 1979-85 1985-90 1990-98 1995    1996    1997    1998
or area


Hourly compensation3:  National currency basis

United States    4.7     7.1     3.9     3.5     2.4     2.2     4.0     4.3

Canada           5.1     8.4     5.1     2.7     3.2    -0.7     3.7     3.9
Japan            3.9     4.7     4.6     3.0     2.6     1.4     2.9     0.7
Korea            NA      NA      NA      NA      NA      NA      NA      NA
Taiwan           NA      NA      NA      NA      NA      NA      NA      NA
Belgium          4.8     8.1     3.7     3.2     2.9     2.6     2.8     0.6
Denmark          NA      8.1     5.3     NA      NA      NA      NA      NA
France           6.3    12.8     4.5     2.9     2.5     1.6     2.7     1.4

Germany2         5.1     6.0     5.0     4.5     5.3     5.1     2.3     0.8
Italy            9.1    16.7     6.8     5.0     4.6     7.2     4.2    -0.9
Netherlands      3.5     5.0     2.1     3.3     2.2     3.0     3.2     0.2
Norway           6.9    10.0     7.8     4.0     4.6     4.1     4.8     6.1
Sweden           7.0     9.6     8.5     4.2     5.0     6.8     4.3     2.7
United Kingdom   8.0    11.6     8.8     5.0     0.8     0.7     4.3     5.7


Unit labor costs:  National currency basis

United States    1.7     3.7     1.6     0.2    -3.5     0.1    -0.1     0.2

Canada           3.1     5.9     3.8     0.7     0.7     0.7     0.4     3.2
Japan            0.5     1.2     0.3     0.0    -4.5    -4.3    -0.9     0.4
Korea            5.6     9.2     6.0     2.8    11.3     5.1    -8.3    -7.7
Taiwan           3.5     7.3     3.5     0.6     0.1    -0.2    -1.5    -1.1
Belgium          1.1     2.0     1.5     0.2    -1.5     1.3    -3.1     0.1
Denmark          3.2     5.9     4.8     0.2     0.5    -1.1     3.2    -0.4
France           2.8     9.5     1.0    -1.0    -2.8     1.1    -4.2    -1.9

Germany2         2.5     3.8     2.8     1.3     2.2     1.6    -3.4    -3.3
Italy            5.6    11.2     4.2     2.3     1.1     6.2     1.3    -1.1
Netherlands      0.0     0.4     0.1    -0.5    -2.6    -0.8    -1.8    -1.4
Norway           5.3     7.4     6.4     3.0     4.0     4.0     5.0     3.9
Sweden           3.5     6.4     6.6    -0.4    -0.3     4.2    -2.1     0.6
United Kingdom   4.6     7.2     4.5     2.8     2.8     2.2     3.8     4.7

                                                        Continued on next page


Table B.  Output per hour, hourly compensation, unit labor costs, and related measures
Manufacturing, 14 countries or areas, 1979-98

Average annual rates of change1

Country         1979-98  1979-85  1985-90  1990-98  1995    1996    1997    1998
or area


Unit labor costs:  U.S. dollar basis

United States     1.7      3.7      1.6      0.2    -3.5     0.1    -0.1    0.2

Canada            1.9      3.3      7.1     -2.3     0.2     1.3    -1.2   -3.7
Japan             3.2     -0.3     10.8      1.3     3.8   -17.3   -11.0   -7.2
Korea            -0.1     -0.8     10.2     -5.6    16.2     0.8   -22.3  -37.4
Taiwan            3.8      5.5     12.0     -2.1    -0.1    -3.7    -6.0  -15.2
Belgium           0.0     -9.3     13.8     -0.8    11.7    -3.6   -16.2   -1.3
Denmark           1.9     -5.8     16.7     -0.8    14.0    -4.6    -9.5   -1.8
France            1.0     -3.3     11.6     -2.0     8.1    -1.4   -16.0   -2.9

Germany2          2.7     -4.1     15.9      0.3    15.7    -3.3   -16.2   -4.7
Italy             1.6     -3.2     14.4     -2.3     0.0    12.2    -8.2   -3.0
Netherlands       0.0     -7.6     12.9     -1.5    10.4    -5.7   -15.1   -2.9
Norway            3.1     -1.7     13.3      0.6    15.8     2.0    -4.3   -2.5
Sweden            0.2     -5.2     14.8     -4.0     7.7    10.9   -14.1   -3.3
United Kingdom    3.2     -1.3     11.4      1.8     6.0     1.0     8.9    5.9


Exchange rates4

United States     0.0      0.0      0.0      0.0     0.0     0.0     0.0    0.0

Canada           -1.2     -2.5      3.2      -3.0   -0.4     0.6    -1.5   -6.7
Japan             2.7     -1.5     10.5       1.3    8.7   -13.6   -10.1   -7.6
Korea            -5.4     -9.2      3.9      -8.1    4.4    -4.0   -15.3  -32.1
Taiwan            0.4     -1.7      8.2      -2.7   -0.1    -3.5    -4.5  -14.2
Belgium          -1.1    -11.1     12.2      -1.0   13.4    -4.8   -13.5   -1.4
Denmark          -1.3    -11.0     11.4      -1.0   13.5    -3.5   -12.2   -1.4
France           -1.7    -11.7     10.5      -1.0   11.2    -2.5   -12.4   -1.0

Germany2          0.2     -7.6     12.7      -1.1   13.2    -4.8   -13.3   -1.4
Italy            -3.8    -12.9      9.8      -4.5   -1.1     5.6    -9.5   -1.9
Netherlands       0.1     -8.0     12.7      -1.1   13.4    -4.9   -13.6   -1.6
Norway           -2.1     -8.4      6.6      -2.3   11.4    -1.9    -8.8   -6.2
Sweden           -3.2    -11.0      7.8      -3.6    8.1     6.4   -12.2   -3.9
United Kingdom   -1.3     -7.9      6.6      -0.9    3.0    -1.1     4.9    1.2

1Rates of change based on the compound             3Adjusted to include employment taxes
 rate method.                                       that are not compensation to employees
                                                    but are labor costs to employers.
2Data relate to the former West Germany.
                                                   4Value of foreign currency relative to
NA = Not available.                                 the U.S. dollar.

Trade-weighted unit labor costs

   Because the economies covered by the BLS comparative data differ greatly 
in their relative importance to U.S. trade in manufactured goods, BLS 
constructs indexes of U.S. unit labor cost trends relative to a trade-
weighted average of unit labor cost trends in the other economies. (See chart 
3.)

The construction of the indexes shown in chart 3 is a three-step 
process.  First, the indexes of unit labor costs for all economies are 
rebased to a common year (in this case 1979=100).  Second, for each year, a 
"competitors" index is calculated as the weighted geometric mean of the 
indexes for all competitor economies.  Finally, the U.S. index number for 
each year is divided by the "competitors" index number (and multiplied by 
100) to obtain a relative ratio of the United States to the competitors.  
This process is used to calculate the relative trade-weighted unit labor cost 
indexes on both a national currency and a U.S. dollar basis.

Chart 3 relates the growth of U.S. unit labor costs to the growth of 
foreign competitors' costs.  The solid line indicates that U.S. unit labor 
costs rose faster than competitors' costs between 1979 and 1985 on a U.S. 
dollar basis.  In most years between 1985 and 1995, U.S. costs either rose at 
a slower rate than the competitors' costs or fell at a faster rate.  Since 
1995, however, the strength of the U.S. dollar has once again caused relative 
U.S. unit labor costs to rise.

The data underlying this chart are shown in table C.

PRINTED COPY CONTAINS CHART AT THIS POINT:
Chart 3. U.S. manufacturing unit labor costs relative to 13 
competitors, 1979-98


Table C. U.S. manufacturing unit labor costs relative to 13 competitors, 
1979-98


        Unit Labor Costs             Unit Labor Costs
        National Currency Basis      U.S. Dollar Basis
  Year    Own   Competitors'           Own   Competitors'
         Index      Index     Ratio   Index      Index     Ratio

  1979   100.0      100.0     100.0   100.0      100.0     100.0
  1980   112.3      111.9     100.4   112.3      110.2     101.9
  1981   117.6      120.9      97.3   117.6      109.6     107.3
  1982   125.1      129.2      96.8   125.1      106.2     117.8
  1983   122.8      131.2      93.6   122.8      104.8     117.2
  1984   122.2      131.8      92.7   122.2       99.3     123.0
  1985   124.2      133.1      93.3   124.2       97.2     127.7
  1986   128.9      138.5      93.1   128.9      121.7     105.9
  1987   124.1      140.5      88.3   124.1      139.7      88.8
  1988   124.3      141.8      87.7   124.3      152.1      81.7
  1989   129.4      145.5      88.9   129.4      151.8      85.3
  1990   134.6      151.5      88.9   134.6      163.4      82.4
  1991   141.0      158.1      89.2   141.0      173.1      81.5
  1992   144.7      162.6      89.0   144.7      181.5      79.7
  1993   145.9      165.2      88.3   145.9      179.8      81.1
  1994   141.3      163.3      86.6   141.3      180.5      78.3
  1995   136.4      162.8      83.8   136.4      190.1      71.7
  1996   136.5      162.7      83.9   136.5      180.4      75.6
  1997   136.4      161.0      84.7   136.4      165.0      82.7
  1998   136.7      161.3      84.7   136.7      153.8      88.9


- 17 -

Table 1.  Output per hour in manufacturing, 14 countries or areas, 1950-1998
(Indexes:  1992=100)

       United                                                                          Nether-                 United
 Year  States  Canada  Japan   Korea   Taiwan  Belgium Denmark France  Germany Italy   lands   Norway  Sweden  Kingdom

  1950   NA     28.0     NA      NA      NA      NA     22.6    13.2    13.2    11.2    12.1    24.5    19.7    25.5

  1955   NA     34.4     8.7     NA      NA      NA     24.6    16.7    19.7    15.7    15.2    28.5    21.6    27.5

  1960   NA     40.7    14.0     NA      NA     18.0    29.9    21.8    29.2    19.6    19.3    36.7    27.6    31.2
  1961   NA     42.9    15.8     NA      NA     18.2    31.6    23.2    30.6    21.2    20.3    38.0    29.0    31.2
  1962   NA     46.3    16.6     NA      NA     19.2    33.2    24.7    32.8    23.5    20.9    38.0    31.3    31.9
  1963   NA     48.2    18.0     NA      NA     19.9    34.3    26.0    34.1    24.1    21.7    40.0    33.1    33.6
  1964   NA     50.4    20.4     NA      NA     21.2    37.1    28.1    37.1    24.4    23.6    42.2    36.0    35.8
  1965   NA     52.9    21.2     NA      NA     22.3    38.9    30.0    39.3    27.1    25.1    44.7    38.7    36.9
  1966   NA     53.8    23.3     NA      NA     23.8    40.8    32.5    40.9    29.5    26.6    46.6    40.3    38.1
  1967   NA     54.3    26.3     NA      NA     25.1    43.8    34.6    43.4    31.0    28.5    48.3    43.7    39.9
  1968   NA     57.6    29.5     NA      NA     27.3    47.8    38.1    47.0    33.4    31.9    51.3    47.8    42.7
  1969   NA     60.6    33.8     NA      NA     29.9    49.8    40.6    50.4    34.6    34.9    56.1    51.5    43.8

  1970   NA     59.2    38.0     NA      NA     32.9    52.7    43.1    52.0    36.8    38.1    57.8    52.8    44.7
  1971   NA     62.7    40.2     NA      NA     35.1    56.3    45.6    54.0    37.4    40.4    60.1    55.1    46.9
  1972   NA     65.7    44.1     NA      NA     39.2    60.8    47.7    57.4    40.6    43.6    63.6    57.9    49.5
  1973   NA     69.6    48.1     NA      NA     43.5    66.9    51.0    61.1    44.0    48.3    67.6    62.1    53.1
  1974   NA     70.8    49.3     NA      NA     45.8    69.1    52.2    63.2    46.8    51.8    70.6    64.8    53.9
  1975   NA     68.2    50.7     NA      NA     47.6    76.1    54.0    65.9    45.2    51.1    69.7    65.8    52.8
  1976   NA     73.1    53.8     NA      NA     52.4    78.8    57.3    70.6    51.5    56.6    71.9    66.8    55.1
  1977  70.6    77.1    55.9     NA      NA     55.0    80.4    60.7    72.7    52.5    61.1    71.5    65.8    55.6
  1978  71.1    78.5    58.1     NA      NA     58.3    81.6    63.4    75.2    55.9    65.3    72.8    67.6    56.4
  1979  72.1    78.4    62.9     NA      NA     61.4    85.6    66.3    78.4    61.3    68.4    78.1    72.9    56.8

  1980  71.9    75.3    63.9     NA      NA     65.4    90.3    66.7    77.2    64.1    69.2    76.7    74.0    56.2
  1981  75.5    77.1    66.0     NA      NA     70.1    91.8    68.6    78.7    65.6    70.8    76.5    73.5    59.1
  1982  77.8    75.3    68.7     NA      NA     73.5    92.1    73.4    78.8    66.8    72.2    79.7    76.7    62.3
  1983  81.4    79.8    69.6     NA      NA     81.0    96.6    75.0    82.6    70.4    78.1    82.4    81.8    67.2
  1984  84.6    86.6    71.9     NA      NA     85.0    96.1    76.1    85.4    77.3    85.8    87.4    85.6    70.8
  1985  87.8    89.8    77.3     NA      NA     87.0    96.7    79.1    89.1    81.6    89.3    90.2    87.1    72.3
  1986  88.3    89.3    76.9     NA      NA     87.8    91.1    80.4    89.6    82.7    90.9    89.0    88.5    74.9
  1987  94.4    91.3    81.2     NA      NA     88.9    90.6    81.8    88.1    85.1    91.7    93.3    90.1    79.5
  1988  98.0    91.1    84.8     NA      NA     92.0    94.1    87.4    91.5    86.7    93.8    92.1    90.8    82.4
  1989  97.1    92.4    89.5     NA      NA     96.9    99.6    91.9    94.6    89.4    97.1    94.6    93.8    86.2

  1990  97.8    95.3    95.4     NA      NA     96.8    99.1    93.5    99.0    92.5    98.6    96.6    95.0    88.4
  1991  98.3    95.1    99.4     NA      NA     99.1    99.6    96.9   101.9    95.2    99.6    97.5    95.0    92.2
  1992 100.0   100.0   100.0     NA      NA    100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0
  1993 102.1   102.5   100.5     NA      NA    102.5   104.5   100.6   100.6   102.9   101.9   100.6   106.7   104.1
  1994 108.3   106.2   101.8     NA      NA    108.4     NA    108.5   107.9   105.6   114.2   101.4   116.1   106.8
  1995 114.9   108.9   109.3     NA      NA    113.2     NA    114.5   111.2   109.3   119.9   102.0   122.4   104.7
  1996 117.3   107.3   115.8     NA      NA    114.7     NA    115.0   115.1   110.3   124.4   102.0   125.4   103.3
  1997 122.1   111.0   120.2     NA      NA    121.7     NA    123.3   121.8   113.4   130.7   101.9   133.6   103.8
  1998 127.0   111.7   120.5     NA      NA    122.4     NA    127.5   127.1   113.6   132.8   104.1   136.5   104.8

NA:  Not Available

Note:  The data relate to employees (wage and salary earners) in Belgium, Denmark, Italy, and the Netherlands,
and to all employed persons (employees and self-employed workers) in the other countries.

Source:  U.S. Department of Labor, Bureau of Labor Statistics, August 1999.


- 18 -

Table 2.  Output per employed person in manufacturing, 14 countries or areas, 1950-1998
(Indexes:  1992=100)

       United                                                                          Nether-                 United
 Year  States  Canada  Japan   Korea   Taiwan  Belgium Denmark France  Germany Italy   lands   Norway  Sweden  Kingdom

  1950   NA     30.0     NA      NA      NA      NA     31.8    16.2    19.2    12.4    15.8    32.0    25.6    29.6

  1955   NA     35.6    10.4     NA      NA      NA     34.0    20.3    28.8    17.7    19.8    37.3    27.9    32.4

  1960   NA     41.8    17.3     NA      NA     22.6    39.2    26.6    38.4    22.4    25.4    46.2    33.7    36.0
  1961   NA     43.9    19.3     NA      NA     22.9    40.2    28.3    39.6    24.0    25.7    47.2    35.1    35.5
  1962   NA     47.7    19.8     NA      NA     24.1    42.6    30.1    41.3    25.7    26.3    47.0    37.5    35.9
  1963   NA     49.8    21.2     NA      NA     25.0    43.3    31.8    42.4    26.5    27.1    49.2    39.3    37.8
  1964   NA     52.3    24.0     NA      NA     26.5    47.2    34.0    46.1    26.8    29.2    52.3    42.3    40.6
  1965   NA     54.9    24.5     NA      NA     27.4    49.5    36.1    48.7    28.9    31.0    54.1    45.1    41.2
  1966   NA     55.4    27.0     NA      NA     29.1    51.0    39.2    50.0    31.7    32.7    56.6    47.0    41.8
  1967   NA     56.0    30.6     NA      NA     30.3    54.1    41.2    51.7    33.8    34.9    58.1    50.1    43.5
  1968   NA     59.3    34.2     NA      NA     33.0    57.7    44.3    56.6    36.4    38.3    60.1    53.6    47.0
  1969   NA     62.0    38.6     NA      NA     35.7    59.3    48.2    60.7    37.5    41.3    64.3    56.8    48.1

  1970   NA     60.3    43.0     NA      NA     38.3    60.8    50.5    62.4    39.2    44.3    65.7    58.1    48.4
  1971   NA     63.7    44.8     NA      NA     40.2    64.6    53.0    63.4    38.7    46.5    67.6    60.5    49.5
  1972   NA     66.7    48.9     NA      NA     43.9    68.4    54.9    66.6    41.7    49.5    70.6    61.8    51.8
  1973   NA     70.2    52.8     NA      NA     47.6    71.2    57.8    70.4    45.7    53.8    74.6    65.2    56.3
  1974   NA     70.9    52.0     NA      NA     48.7    75.0    58.3    71.4    46.9    55.9    76.9    67.3    55.3
  1975   NA     67.4    52.2     NA      NA     48.0    79.9    58.6    72.5    44.6    54.1    75.6    67.0    54.0
  1976   NA     72.4    57.0     NA      NA     53.8    83.2    62.4    79.9    50.7    59.8    76.0    67.2    56.8
  1977  69.2    76.3    59.4     NA      NA     56.1    84.1    65.5    81.1    51.5    64.4    74.4    65.6    57.7
  1978  69.8    78.1    62.0     NA      NA     59.4    84.3    67.8    82.8    54.7    68.1    73.9    65.7    58.3
  1979  70.3    77.8    67.5     NA      NA     62.6    88.4    70.8    86.0    59.5    70.5    78.0    69.8    58.5

  1980  69.3    74.0    68.6     NA      NA     65.6    93.9    71.2    83.5    62.4    71.7    77.1    70.1    56.0
  1981  72.7    75.8    70.3     NA      NA     68.7    94.3    72.3    84.1    63.8    73.8    76.9    70.1    58.0
  1982  73.6    73.6    73.0     NA      NA     73.7    96.0    74.2    83.7    64.8    76.1    79.4    73.4    61.7
  1983  79.1    79.1    74.0     NA      NA     79.2   102.1    75.5    87.9    68.3    82.3    82.5    79.2    66.7
  1984  83.5    85.8    77.3     NA      NA     82.5   101.2    76.8    90.9    75.0    89.1    87.4    84.4    70.9
  1985  86.6    89.2    82.8     NA      NA     85.7    98.4    79.2    93.1    78.6    90.5    89.8    85.2    73.2
  1986  87.1    88.9    81.9     NA      NA     86.5    94.9    80.7    93.0    81.6    91.7    88.7    86.3    75.9
  1987  93.5    91.5    86.7     NA      NA     88.4    92.2    82.6    91.3    85.5    92.0    90.7    88.9    80.1
  1988  98.0    93.0    91.7     NA      NA     93.0    95.8    88.5    94.4    90.1    94.8    90.3    89.4    85.0
  1989  97.2    93.5    95.6     NA      NA     97.5   100.2    92.9    96.2    92.7    97.6    93.3    92.1    88.1

  1990  97.2    95.7   100.5     NA      NA     98.5    98.4    94.1    98.8    93.6    99.0    95.1    94.3    90.1
  1991  97.0    94.9   102.5     NA      NA     99.2    99.3    96.4   101.0    95.3    99.8    96.4    94.3    93.1
  1992 100.0   100.0   100.0     NA      NA    100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0
  1993 103.4   103.9    98.1     NA      NA    100.9   103.6   100.5    97.6   100.9   101.9   100.9   109.5   103.9
  1994 110.7   108.3    99.5     NA      NA    109.7   114.0   108.5   104.7   106.4   114.2   102.0   122.7   108.2
  1995 116.7   110.5   107.6     NA      NA    113.3   117.7   113.9   107.3   110.2   120.2   101.6   131.7   107.1
  1996 119.1   110.3   114.9     NA      NA    115.3   123.2   114.7   109.3   110.3   124.7   101.1   135.5   105.7
  1997 124.8   114.3   118.5     NA      NA    122.5   124.1   122.5   116.0   113.8   130.4   100.6   144.5   106.2
  1998 129.3   114.4   116.9     NA      NA    123.4   126.8   127.0   122.3   113.8   132.4   102.7   147.5   107.0

NA:  Not Available

Note:  The data relate to employees (wage and salary earners) in Belgium, Denmark, Italy, and the Netherlands,
and to all employed persons (employees and self-employed workers) in the other countries.

Source:  U.S. Department of Labor, Bureau of Labor Statistics, August 1999.
- 19 -

Table 3.  Output in manufacturing, 14 countries or areas, 1950-1998
(Indexes:  1992=100)

       United                                                                          Nether-                 United
 Year  States  Canada  Japan   Korea   Taiwan  Belgium Denmark France  Germany Italy   lands   Norway  Sweden  Kingdom

  1950   NA     22.6     2.2     NA      NA      NA     26.8    18.4    14.5     9.4    16.8    38.2    31.2    49.9

  1955   NA     29.3     4.9     NA      NA      NA     29.4    22.9    27.5    14.5    23.0    46.7    36.1    58.6

  1960   NA     34.2    10.7     NA      NA     30.7    40.8    31.0    41.5    21.4    31.7    56.5    46.5    67.8
  1961   NA     35.6    12.8     NA      NA     32.1    43.0    33.3    44.0    23.6    32.8    58.8    49.6    67.9
  1962   NA     39.7    13.9     NA      NA     34.6    46.7    35.7    46.2    26.1    34.5    59.3    53.4    68.1
  1963   NA     42.4    15.5     NA      NA     36.2    47.3    38.4    47.1    27.8    35.9    62.9    56.0    70.4
  1964   NA     46.5    18.0     NA      NA     39.5    52.9    42.0    51.2    28.2    39.3    67.3    61.0    76.9
  1965   NA     51.0    18.7     NA      NA     40.8    56.3    44.1    55.0    29.6    42.1    70.9    65.3    79.1
  1966   NA     54.4    21.2     NA      NA     43.2    57.5    48.1    55.9    32.3    44.3    75.1    67.1    80.4
  1967   NA     55.5    25.4     NA      NA     43.7    58.1    50.4    54.7    35.5    46.1    77.5    69.3    81.0
  1968   NA     59.1    29.3     NA      NA     46.7    62.6    53.2    60.3    38.9    50.4    79.4    72.9    86.7
  1969   NA     63.1    34.1     NA      NA     52.2    66.0    59.6    67.4    41.4    55.3    85.2    78.6    90.0

  1970   NA     60.5    38.8     6.3    13.2    57.6    68.0    64.1    70.9    44.7    59.5    89.1    81.7    90.4
  1971   NA     64.3    40.7     7.5    16.2    60.1    69.4    68.1    71.6    45.3    61.5    92.3    82.2    89.4
  1972   NA     69.7    44.4     8.6    19.5    64.7    75.3    71.3    73.8    47.8    63.2    96.7    82.7    91.3
  1973   NA     76.8    50.0    11.1    22.9    70.6    79.5    76.7    78.5    54.0    67.7   102.2    88.5    99.7
  1974   NA     78.7    48.7    13.0    21.7    73.4    80.7    78.2    77.7    57.4    70.2   107.3    93.3    98.4
  1975   NA     73.0    46.2    14.3    22.6    67.9    78.7    76.6    74.1    54.1    65.6   105.0    93.6    91.7
  1976   NA     78.9    50.2    18.1    27.7    73.0    82.5    81.1    79.8    62.2    69.6   105.2    93.6    93.4
  1977  74.9    81.5    51.8    20.9    31.2    73.3    82.9    84.8    81.3    64.4    73.1   103.0    88.3    95.2
  1978  78.7    86.1    53.3    25.5    37.7    74.3    82.7    86.8    82.8    67.5    75.4   100.6    85.9    95.7
  1979  81.3    89.5    57.9    28.1    40.7    76.2    87.4    89.3    87.1    74.6    77.3   104.7    91.4    95.5

  1980  77.3    85.4    59.9    27.7    44.7    78.2    91.3    88.7    85.3    78.4    77.4   103.6    91.8    87.2
  1981  80.7    87.5    62.1    30.5    48.1    77.2    88.4    87.3    84.4    76.8    77.5   101.7    88.9    81.9
  1982  76.2    77.7    64.1    32.6    49.1    80.4    89.8    88.2    81.5    75.7    76.7   101.3    89.8    81.8
  1983  80.5    81.8    66.1    37.6    54.8    84.6    95.8    88.0    82.7    76.3    79.1    99.9    95.0    83.5
  1984  89.1    92.7    70.4    42.3    62.7    87.2   100.3    87.0    85.2    79.8    83.6   104.7   101.7    86.6
  1985  91.8    97.5    76.1    46.7    64.8    89.1   103.5    87.3    88.3    82.4    86.1   108.5   103.9    89.0
  1986  91.0    98.6    74.9    55.7    74.6    89.1   103.5    87.3    89.7    84.5    88.3   108.1   105.2    90.2
  1987  97.9   103.2    78.4    66.6    84.4    88.8    99.3    87.2    88.0    88.2    89.5   110.7   107.7    94.5
  1988 104.5   109.3    84.6    75.8    87.9    93.3   100.8    92.2    90.9    94.5    92.8   105.3   110.2   101.5
  1989 104.0   110.8    90.2    79.0    91.2    99.1   104.3    97.2    94.0    98.1    96.9   101.3   111.6   105.5

  1990 102.5   106.6    96.3    86.7    90.8   101.0   102.7    99.1    99.1    99.6   100.1   100.2   110.6   105.4
  1991  98.7    98.8   101.4    95.0    96.9   100.7   101.7    99.8   102.8    99.2   100.6    98.3   103.6   100.1
  1992 100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0
  1993 103.5   105.1    96.0   105.4   102.5    97.0    99.0    95.7    91.8    96.4    98.2   102.7   101.3   101.5
  1994 112.2   113.2    95.4   116.8   108.4   101.4   109.3   100.3    93.5   102.2   104.2   106.7   115.7   106.2
  1995 119.6   118.8   100.6   129.9   114.9   104.2   115.1   104.9    93.7   107.2   107.8   109.0   130.1   107.8
  1996 121.6   120.2   106.7   138.7   120.0   104.2   119.0   104.6    92.5   106.7   110.6   110.1   132.9   108.3
  1997 128.8   128.0   110.0   147.8   128.0   109.0   121.7   110.3    95.8   110.4   116.1   113.3   140.3   109.3
  1998 134.2   133.0   103.9   137.2   133.0   111.8   127.3   114.6   100.7   112.5   118.8   116.4   146.4   109.7

NA:  Not Available

Source:  U.S. Department of Labor, Bureau of Labor Statistics, August 1999.
- 20 -

Table 4.  Total hours in manufacturing, 14 countries or areas, 1950-1998
(Indexes:  1992=100)

       United                                                                          Nether-                 United
 Year  States  Canada  Japan   Korea   Taiwan  Belgium Denmark France  Germany Italy   lands   Norway  Sweden  Kingdom

  1950  85.5    80.7     NA      NA      NA      NA    118.7   139.6   109.8    83.8   138.5   156.0   158.5   195.7

  1955  94.6    85.1    55.9     NA      NA      NA    119.8   137.7   139.6    92.8   151.5   164.1   167.3   213.1

  1960  92.1    84.1    76.3     NA      NA    170.7   136.5   142.1   142.3   109.0   164.7   154.0   168.3   217.4
  1961  89.7    83.0    80.8     NA      NA    175.9   136.2   143.5   143.9   111.2   161.8   154.8   171.0   217.5
  1962  93.4    85.8    83.4     NA      NA    180.3   140.7   144.5   140.8   111.1   164.8   156.2   170.8   213.2
  1963  94.4    87.9    86.1     NA      NA    181.8   138.0   147.6   138.1   115.3   165.9   157.3   169.1   209.6
  1964  96.4    92.2    88.2     NA      NA    186.5   142.6   149.4   138.0   115.6   166.9   159.5   169.6   214.6
  1965 102.0    96.4    88.0     NA      NA    183.2   144.9   146.6   140.0   109.1   167.9   158.4   168.8   214.3
  1966 108.6   101.1    91.0     NA      NA    181.5   140.8   148.0   136.7   109.7   166.4   161.1   166.5   211.2
  1967 108.0   102.1    96.3     NA      NA    173.6   132.7   145.9   125.9   114.8   161.5   160.4   158.4   203.1
  1968 109.6   102.5    99.4     NA      NA    170.9   130.9   139.5   128.3   116.4   158.3   154.9   152.6   202.8
  1969 110.9   104.2   100.9     NA      NA    174.9   132.7   146.8   133.8   119.5   158.7   152.0   152.5   205.6

  1970 104.4   102.1   102.3     NA      NA    174.7   129.0   148.7   136.3   121.2   156.4   154.3   154.7   202.1
  1971 100.5   102.5   101.1     NA      NA    171.4   123.3   149.4   132.5   121.0   152.5   153.6   149.1   190.6
  1972 105.1   106.1   100.6     NA      NA    165.2   123.8   149.6   128.7   117.9   145.0   152.1   142.9   184.3
  1973 110.4   110.3   104.0     NA      NA    162.1   118.8   150.3   128.4   122.7   140.3   151.2   142.5   187.9
  1974 107.9   111.1    98.7     NA      NA    160.4   116.7   149.9   122.9   122.8   135.6   152.0   144.0   182.4
  1975  97.2   107.0    91.1     NA      NA    142.6   103.5   142.0   112.5   119.6   128.5   150.5   142.3   173.6
  1976 101.9   108.0    93.3     NA      NA    139.4   104.7   141.6   113.1   120.9   123.1   146.2   140.2   169.5
  1977 106.1   105.7    92.5     NA      NA    133.3   103.1   139.8   111.8   122.6   119.5   144.1   134.2   171.2
  1978 110.6   109.7    91.6     NA      NA    127.4   101.4   137.0   110.1   120.7   115.5   138.3   127.1   169.8
  1979 112.7   114.2    92.0     NA      NA    124.2   102.1   134.6   111.0   121.7   112.9   134.1   125.5   168.1

  1980 107.5   113.5    93.8     NA      NA    119.7   101.1   133.1   110.5   122.4   111.9   135.0   124.0   155.3
  1981 107.0   113.4    94.1     NA      NA    110.2    96.3   127.2   107.1   117.2   109.5   133.0   121.0   138.7
  1982  97.9   103.2    93.3     NA      NA    109.4    97.5   120.2   103.4   113.3   106.1   127.1   117.2   131.3
  1983  98.9   102.4    95.0     NA      NA    104.3    99.2   117.4   100.1   108.5   101.3   121.2   116.1   124.3
  1984 105.3   107.0    97.9     NA      NA    102.6   104.4   114.2    99.7   103.2    97.5   119.7   118.9   122.4
  1985 104.6   108.6    98.4     NA      NA    102.4   107.0   110.5    99.1   100.9    96.3   120.2   119.4   123.1
  1986 103.0   110.5    97.3     NA      NA    101.5   113.7   108.7   100.1   102.1    97.1   121.6   118.9   120.5
  1987 103.8   113.0    96.6     NA      NA    100.0   109.6   106.6    99.9   103.6    97.6   118.6   119.5   118.9
  1988 106.6   120.0    99.8     NA      NA    101.5   107.2   105.5    99.3   108.9    98.9   114.3   121.4   123.2
  1989 107.1   119.9   100.8     NA      NA    102.3   104.7   105.8    99.3   109.7    99.7   107.1   119.0   122.3

  1990 104.8   111.9   100.9     NA      NA    104.3   103.7   105.9   100.1   107.7   101.6   103.7   116.4   119.2
  1991 100.4   103.8   102.0     NA      NA    101.5   102.1   103.0   100.9   104.2   101.0   100.8   109.0   108.5
  1992 100.0   100.0   100.0     NA      NA    100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0
  1993 101.4   102.6    95.6     NA      NA     94.7    94.8    95.1    91.3    93.6    96.4   102.1    94.9    97.5
  1994 103.6   106.6    93.7     NA      NA     93.6     NA     92.4    86.7    96.7    91.3   105.2    99.6    99.4
  1995 104.0   109.1    92.0     NA      NA     92.0     NA     91.6    84.3    98.0    90.0   106.9   106.3   103.0
  1996 103.7   112.0    92.2     NA      NA     90.8     NA     91.0    80.4    96.7    88.9   107.9   106.0   104.8
  1997 105.5   115.4    91.5     NA      NA     89.5     NA     89.5    78.6    97.4    88.8   111.1   105.0   105.4
  1998 105.6   119.0    86.2     NA      NA     91.3     NA     89.9    79.3    99.0    89.5   111.9   107.3   104.7

NA:  Not Available

Note:  The data relate to employees (wage and salary earners) in Belgium, Denmark, Italy, and the Netherlands,
and to all employed persons (employees and self-employed workers) in the other countries.

Source:  U.S. Department of Labor, Bureau of Labor Statistics, August 1999.
- 21 -

Table 5.  Employment in manufacturing, 14 countries or areas, 1950-1998
(Indexes:  1992=100)

       United                                                                          Nether-                 United
 Year  States  Canada  Japan   Korea   Taiwan  Belgium Denmark France  Germany Italy   lands   Norway  Sweden  Kingdom

  1950  84.3    75.1     NA      NA      NA      NA     84.4   113.4    75.2    76.0   106.3   119.3   122.0   168.4

  1955  93.1    82.3    47.1     NA      NA      NA     86.7   113.0    95.5    82.1   116.0   125.2   129.7   181.1

  1960  92.6    81.9    61.7     NA      NA    135.7   104.1   116.6   108.1    95.4   124.9   122.2   137.8   188.5
  1961  90.0    81.2    66.4     NA      NA    140.1   107.0   117.4   111.3    98.4   127.9   124.8   141.3   191.1
  1962  92.8    83.3    70.0     NA      NA    143.3   109.7   118.5   111.8   101.5   131.2   126.3   142.2   189.4
  1963  93.5    85.1    72.8     NA      NA    144.7   109.3   121.1   111.0   104.8   132.5   127.8   142.4   186.4
  1964  94.9    88.9    75.0     NA      NA    148.8   112.0   123.3   111.0   105.1   134.6   128.8   144.3   189.2
  1965  99.3    93.0    76.1     NA      NA    148.7   113.9   122.2   113.0   102.6   135.8   130.9   144.8   191.7
  1966 105.4    98.2    78.3     NA      NA    148.5   112.8   122.8   111.8   102.0   135.4   132.8   143.0   192.2
  1967 106.7    99.1    82.8     NA      NA    143.9   107.5   122.3   105.8   105.3   132.0   133.5   138.3   186.3
  1968 108.5    99.7    85.7     NA      NA    141.5   108.5   120.3   106.6   106.7   131.7   132.0   136.0   184.5
  1969 110.6   101.7    88.2     NA      NA    146.3   111.4   123.7   111.0   110.4   133.9   132.6   138.4   187.1

  1970 106.3   100.3    90.3     NA      NA    150.2   111.9   126.9   113.6   114.0   134.4   135.6   140.6   186.7
  1971 102.2   101.1    90.7     NA      NA    149.6   107.3   128.5   112.9   117.0   132.3   136.4   135.9   180.4
  1972 105.0   104.5    90.8     NA      NA    147.4   110.1   129.9   110.8   114.8   127.6   136.9   133.8   176.1
  1973 110.5   109.4    94.6     NA      NA    148.4   111.6   132.6   111.5   118.1   125.9   136.9   135.8   177.2
  1974 110.1   111.0    93.7     NA      NA    150.7   107.6   134.0   108.9   122.4   125.6   139.5   138.7   177.8
  1975 100.6   108.3    88.5     NA      NA    141.5    98.5   130.7   102.2   121.4   121.3   138.7   139.8   169.7
  1976 104.2   109.1    88.0     NA      NA    135.8    99.2   130.0    99.9   122.7   116.4   138.4   139.4   164.3
  1977 108.2   106.9    87.1     NA      NA    130.5    98.5   129.5   100.3   125.0   113.5   138.5   134.5   164.8
  1978 112.7   110.2    85.9     NA      NA    125.0    98.0   128.0   100.0   123.5   110.8   136.1   130.7   164.2
  1979 115.6   115.1    85.7     NA      NA    121.8    98.8   126.1   101.2   125.4   109.5   134.2   131.0   163.2

  1980 111.6   115.5    87.4     NA      NA    119.3    97.2   124.6   102.2   125.8   108.0   134.5   130.9   155.9
  1981 111.0   115.4    88.3     NA      NA    112.4    93.8   120.7   100.3   120.4   105.0   132.3   127.0   141.2
  1982 103.5   105.7    87.9     NA      NA    109.2    93.6   118.9    97.4   116.7   100.8   127.5   122.4   132.5
  1983 101.8   103.4    89.3     NA      NA    106.8    93.9   116.6    94.1   111.8    96.1   121.0   119.9   125.1
  1984 106.8   108.0    91.1     NA      NA    105.7    99.1   113.3    93.7   106.4    93.8   119.8   120.5   122.2
  1985 106.0   109.4    91.9     NA      NA    104.0   105.2   110.2    94.9   104.8    95.1   120.7   122.0   121.7
  1986 104.5   110.8    91.4     NA      NA    103.0   109.1   108.3    96.4   103.5    96.3   122.0   121.9   118.9
  1987 104.7   112.7    90.4     NA      NA    100.5   107.7   105.6    96.4   103.1    97.3   122.0   121.1   117.9
  1988 106.6   117.6    92.4     NA      NA    100.4   105.3   104.1    96.3   104.8    97.9   116.6   123.3   119.3
  1989 107.0   118.6    94.3     NA      NA    101.7   104.1   104.7    97.6   105.8    99.2   108.7   121.2   119.7

  1990 105.4   111.4    95.8     NA      NA    102.5   104.3   105.4   100.3   106.4   101.1   105.4   117.2   116.9
  1991 101.8   104.0    98.9     NA      NA    101.5   102.4   103.6   101.8   104.1   100.8   101.9   109.9   107.5
  1992 100.0   100.0   100.0     NA      NA    100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0
  1993 100.1   101.2    97.9     NA      NA     96.1    95.5    95.2    94.0    95.5    96.4   101.8    92.6    97.7
  1994 101.3   104.5    95.9     NA      NA     92.5    95.8    92.4    89.3    96.0    91.3   104.7    94.2    98.2
  1995 102.5   107.5    93.5     NA      NA     91.9    97.8    92.1    87.3    97.2    89.7   107.2    98.8   100.7
  1996 102.2   109.0    92.9     NA      NA     90.3    96.6    91.2    84.6    96.7    88.7   108.9    98.1   102.5
  1997 103.2   112.0    92.8     NA      NA     89.0    98.1    90.0    82.6    96.9    89.0   112.6    97.1   102.9
  1998 103.8   116.2    88.9     NA      NA     90.6   100.3    90.2    82.4    98.8    89.8   113.3    99.3   102.6

NA:  Not Available

Note:  The data relate to employees (wage and salary earners) in Belgium, Denmark, Italy, and the Netherlands,
and to all employed persons (employees and self-employed workers) in the other countries.

Source:  U.S. Department of Labor, Bureau of Labor Statistics, August 1999.
- 22 -

Table 6.  Average annual hours in manufacturing, 14 countries or areas, 1950-1998
(Indexes:  1992=100)

       United                                                                          Nether-                 United
 Year  States  Canada  Japan   Korea   Taiwan  Belgium Denmark France  Germany Italy   lands   Norway  Sweden  Kingdom

  1950 101.4   107.4     NA      NA      NA      NA    140.7   123.0   146.0   110.2   130.3   130.8   129.9   116.2

  1955 101.5   103.4   118.7     NA      NA      NA    138.2   121.8   146.1   113.0   130.6   131.1   129.0   117.7

  1960  99.5   102.7   123.5     NA      NA    125.8   131.2   121.8   131.7   114.3   131.9   126.0   122.1   115.3
  1961  99.6   102.2   121.6     NA      NA    125.5   127.3   122.2   129.4   113.1   126.5   124.1   121.1   113.8
  1962 100.6   103.0   119.2     NA      NA    125.8   128.3   121.9   126.0   109.5   125.6   123.7   120.1   112.6
  1963 100.9   103.3   118.2     NA      NA    125.7   126.3   121.9   124.4   110.0   125.2   123.1   118.8   112.5
  1964 101.6   103.7   117.6     NA      NA    125.3   127.4   121.1   124.3   110.0   124.0   123.9   117.5   113.4
  1965 102.7   103.7   115.6     NA      NA    123.2   127.2   120.0   123.9   106.4   123.6   121.0   116.6   111.8
  1966 103.0   103.0   116.2     NA      NA    122.2   124.8   120.5   122.3   107.6   122.9   121.3   116.4   109.9
  1967 101.2   103.1   116.3     NA      NA    120.7   123.4   119.3   119.0   109.1   122.4   120.2   114.5   109.0
  1968 101.0   102.8   116.0     NA      NA    120.7   120.6   116.0   120.4   109.1   120.2   117.3   112.2   109.9
  1969 100.2   102.5   114.4     NA      NA    119.5   119.1   118.7   120.6   108.3   118.5   114.6   110.2   109.9

  1970  98.2   101.8   113.3     NA      NA    116.3   115.3   117.2   119.9   106.4   116.4   113.8   110.0   108.2
  1971  98.4   101.5   111.4     NA      NA    114.6   114.9   116.3   117.3   103.4   115.3   112.6   109.7   105.7
  1972 100.0   101.5   110.8     NA      NA    112.0   112.4   115.1   116.2   102.7   113.6   111.0   106.8   104.7
  1973  99.9   100.8   109.9     NA      NA    109.3   106.4   113.3   115.2   103.9   111.4   110.4   104.9   106.0
  1974  98.0   100.1   105.3     NA      NA    106.4   108.5   111.9   112.9   100.3   108.0   108.9   103.8   102.6
  1975  96.6    98.9   103.0     NA      NA    100.7   105.1   108.6   110.1    98.5   106.0   108.5   101.8   102.3
  1976  97.7    99.0   106.0     NA      NA    102.6   105.6   108.9   113.2    98.5   105.8   105.7   100.6   103.2
  1977  98.1    98.9   106.2     NA      NA    102.1   104.6   107.9   111.5    98.0   105.3   104.0    99.8   103.9
  1978  98.1    99.6   106.7     NA      NA    101.9   103.4   107.0   110.1    97.8   104.3   101.6    97.2   103.4
  1979  97.5    99.2   107.3     NA      NA    102.0   103.3   106.7   109.7    97.1   103.1    99.9    95.8   103.0

  1980  96.3    98.3   107.3     NA      NA    100.4   104.0   106.8   108.1    97.3   103.7   100.4    94.8    99.6
  1981  96.4    98.3   106.5     NA      NA     98.1   102.7   105.4   106.8    97.3   104.2   100.6    95.3    98.2
  1982  94.6    97.6   106.2     NA      NA    100.2   104.2   101.1   106.2    97.1   105.3    99.7    95.7    99.1
  1983  97.2    99.1   106.4     NA      NA     97.7   105.6   100.7   106.4    97.1   105.4   100.1    96.8    99.4
  1984  98.6    99.1   107.4     NA      NA     97.1   105.3   100.8   106.4    97.1   104.0    99.9    98.6   100.2
  1985  98.7    99.3   107.1     NA      NA     98.5   101.8   100.2   104.5    96.2   101.3    99.6    97.9   101.2
  1986  98.6    99.6   106.5     NA      NA     98.6   104.2   100.4   103.9    98.6   100.8    99.7    97.5   101.3
  1987  99.1   100.3   106.8     NA      NA     99.4   101.8   101.0   103.6   100.4   100.3    97.2    98.7   100.8
  1988 100.0   102.1   108.0     NA      NA    101.1   101.8   101.3   103.2   104.0   101.1    98.0    98.5   103.3
  1989 100.0   101.1   106.8     NA      NA    100.6   100.6   101.1   101.7   103.7   100.5    98.6    98.2   102.2

  1990  99.4   100.4   105.3     NA      NA    101.8    99.4   100.6    99.8   101.2   100.5    98.4    99.3   102.0
  1991  98.7    99.8   103.2     NA      NA    100.0    99.7    99.4    99.1   100.1   100.2    98.9    99.2   100.9
  1992 100.0   100.0   100.0     NA      NA    100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0
  1993 101.3   101.4    97.7     NA      NA     98.5    99.2    99.9    97.0    98.0   100.0   100.3   102.6    99.8
  1994 102.2   102.0    97.7     NA      NA    101.2     NA    100.0    97.1   100.7   100.0   100.5   105.7   101.3
  1995 101.5   101.5    98.4     NA      NA    100.1     NA     99.5    96.5   100.8   100.3    99.7   107.6   102.3
  1996 101.5   102.8    99.2     NA      NA    100.5     NA     99.7    95.0   100.0   100.2    99.1   108.0   102.3
  1997 102.2   103.0    98.6     NA      NA    100.6     NA     99.4    95.2   100.4    99.8    98.7   108.2   102.4
  1998 101.8   102.4    97.0     NA      NA    100.8     NA     99.7    96.2   100.2    99.7    98.7   108.1   102.1

NA:  Not Available

Note:  The data relate to employees (wage and salary earners) in Belgium, Denmark, Italy, and the Netherlands,
and to all employed persons (employees and self-employed workers) in the other countries.

Source:  U.S. Department of Labor, Bureau of Labor Statistics, August 1999.
- 23 -

Table 7.  Hourly compensation in manufacturing, national currency basis, 14 countries or areas, 1950-1998
(Indexes:  1992=100)

       United                                                                          Nether-                 United
 Year  States  Canada* Japan   Korea   Taiwan  Belgium Denmark France* Germany Italy   lands   Norway  Sweden* Kingdom*

  1950   8.7     5.7     NA      NA      NA      NA      2.5     1.6     3.4     0.8     3.1     2.2     1.9     1.6

  1955  11.7     8.1     3.1     NA      NA      NA      3.4     2.8     5.0     1.2     4.5     3.4     3.0     2.3

  1960  14.9    10.4     4.3     NA      NA      5.4     4.6     4.3     8.1     1.6     6.4     4.7     4.1     3.1
  1961  15.4    10.7     5.0     NA      NA      5.7     5.2     4.7     9.1     1.7     7.3     5.2     4.5     3.3
  1962  15.9    11.1     5.7     NA      NA      6.2     5.6     5.2    10.3     2.1     7.8     5.7     5.0     3.4
  1963  16.4    11.6     6.4     NA      NA      6.8     6.1     5.7    11.0     2.4     8.6     6.1     5.6     3.6
  1964  17.1    12.1     7.2     NA      NA      7.7     6.6     6.2    11.9     2.6     9.9     6.5     6.1     3.8
  1965  17.5    12.8     8.1     NA      NA      8.5     7.4     6.7    13.1     2.8    11.1     7.2     6.7     4.2
  1966  18.3    13.7     9.0     NA      NA      9.4     8.4     7.1    14.2     3.0    12.5     7.8     7.3     4.5
  1967  19.3    14.4    10.0     NA      NA     10.3     9.4     7.6    15.0     3.3    13.8     8.7     8.1     4.7
  1968  20.7    15.4    11.7     NA      NA     11.0    10.3     8.6    16.1     3.5    15.4     9.6     8.8     5.0
  1969  22.2    16.6    13.8     NA      NA     12.1    11.6     9.2    17.6     3.8    17.4    10.6     9.6     5.5

  1970  23.8    17.8    16.5     NA      NA     13.7    13.3    10.3    20.7     4.7    20.2    11.8    10.8     6.3
  1971  25.3    18.8    19.0     NA      NA     15.9    15.2    11.6    23.2     5.4    23.1    13.5    12.1     7.2
  1972  26.6    20.2    21.9     NA      NA     18.8    16.9    12.8    25.6     6.0    26.5    15.1    13.5     8.3
  1973  28.7    21.9    26.8     NA      NA     22.3    20.5    14.7    29.0     7.1    31.6    17.0    15.2     9.5
  1974  31.8    25.4    35.1     NA      NA     27.4    24.8    17.4    33.0     9.3    37.7    19.9    17.8    11.4
  1975  35.7    29.1    40.9     NA      NA     33.1    29.6    21.3    36.4    11.7    43.1    23.8    21.9    15.1
  1976  38.7    33.3    44.0     NA      NA     38.3    33.0    24.4    39.1    14.5    48.1    27.5    25.6    17.6
  1977  42.0    37.0    48.6     NA      NA     41.4    36.5    27.7    42.8    17.2    52.5    30.9    28.0    19.8
  1978  45.4    39.7    51.8     NA      NA     44.4    40.2    31.2    45.9    19.8    56.8    34.1    31.2    23.1
  1979  49.9    43.2    55.1     NA      NA     47.2    45.0    35.4    49.3    24.0    61.1    35.8    33.6    27.5

  1980  55.8    47.7    58.6     NA      NA     52.5    49.6    40.8    53.6    28.2    64.4    39.0    37.4    33.2
  1981  61.3    53.3    62.7     NA      NA     57.3    54.6    47.2    57.0    34.1    67.4    43.3    41.3    38.5
  1982  67.3    59.9    65.8     NA      NA     59.9    59.5    56.1    60.4    40.2    71.5    48.2    44.3    42.4
  1983  69.1    63.7    67.6     NA      NA     65.7    63.6    61.9    63.1    47.0    74.9    52.9    48.8    45.5
  1984  71.5    66.1    69.7     NA      NA     71.4    67.2    67.2    66.0    53.9    77.7    57.9    53.0    49.1
  1985  75.3    69.9    72.5     NA      NA     75.3    71.7    72.8    70.0    60.6    81.8    63.4    58.4    53.1
  1986  78.7    72.5    76.1     NA      NA     77.3    73.2    75.8    72.8    63.1    85.0    69.1    63.1    57.6
  1987  80.9    75.3    77.9     NA      NA     79.7    80.1    78.6    76.0    66.7    87.8    78.5    67.3    64.8
  1988  84.2    77.8    79.2     NA      NA     81.1    82.9    81.6    79.1    69.3    87.7    83.3    71.7    67.7
  1989  86.9    82.5    84.2     NA      NA     85.9    87.7    86.0    83.2    75.9    88.5    87.2    79.4    72.9

  1990  91.0    89.5    90.7     NA      NA     90.1    92.7    90.6    89.4    84.4    90.8    92.3    87.6    80.9
  1991  95.8    94.7    95.9     NA      NA     97.3    95.9    96.2    95.1    93.6    95.2    97.5    95.4    90.5
  1992 100.0   100.0   100.0     NA      NA    100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0
  1993 102.9    99.6   104.6     NA      NA    104.8   104.6   102.8   105.9   107.5   103.7   101.5    98.0   104.3
  1994 105.8   100.4   106.7     NA      NA    106.1     NA    105.0   111.7   107.8   108.2   104.4   101.1   106.5
  1995 108.3   103.6   109.5     NA      NA    109.2     NA    107.7   117.7   112.8   110.6   109.2   106.2   107.4
  1996 110.7   102.8   110.9     NA      NA    112.0     NA    109.4   123.7   120.9   113.9   113.6   113.4   108.2
  1997 115.1   106.7   114.1     NA      NA    115.1     NA    112.4   126.6   125.9   117.5   119.1   118.3   112.8
  1998 120.0   110.8   115.0     NA      NA    115.9     NA    114.0   127.6   124.8   117.8   126.4   121.5   119.2

NA:  Not Available

Note:  The data relate to employees (wage and salary earners) in Belgium, Denmark, Italy, and the Netherlands,
and to all employed persons (employees and self-employed workers) in the other countries.

* Compensation adjusted to include changes in employment taxes that are not compensation to employees, but are labor
   costs to employers.

Source:  U.S. Department of Labor, Bureau of Labor Statistics, August 1999.
- 24 -

Table 8.  Hourly compensation in manufacturing, U.S. dollar basis, 14 countries or areas, 1950-1998
(Indexes:  1992=100)

       United                                                                          Nether-                 United
 Year  States  Canada* Japan   Korea   Taiwan  Belgium Denmark France* Germany Italy   lands   Norway  Sweden* Kingdom*

  1950   8.7     6.3     NA      NA      NA      NA      2.2     2.4     1.3     1.7     1.4     1.9     2.1     2.5

  1955  11.7     9.9     1.1     NA      NA      NA      3.0     4.3     1.9     2.4     2.1     2.9     3.3     3.6

  1960  14.9    13.0     1.5     NA      NA      3.5     4.0     4.6     3.0     3.1     3.0     4.1     4.7     4.9
  1961  15.4    12.7     1.8     NA      NA      3.7     4.5     5.1     3.5     3.5     3.5     4.5     5.1     5.2
  1962  15.9    12.5     2.0     NA      NA      4.0     4.9     5.6     4.0     4.1     3.8     4.9     5.7     5.5
  1963  16.4    13.0     2.3     NA      NA      4.4     5.4     6.1     4.3     4.8     4.2     5.3     6.3     5.7
  1964  17.1    13.5     2.5     NA      NA      5.0     5.8     6.6     4.7     5.1     4.8     5.6     6.9     6.1
  1965  17.5    14.3     2.8     NA      NA      5.5     6.4     7.2     5.1     5.5     5.4     6.2     7.6     6.6
  1966  18.3    15.4     3.1     NA      NA      6.1     7.3     7.6     5.5     5.9     6.1     6.8     8.3     7.2
  1967  19.3    16.2     3.5     NA      NA      6.7     8.1     8.2     5.9     6.5     6.7     7.6     9.2     7.3
  1968  20.7    17.3     4.1     NA      NA      7.1     8.3     9.2     6.3     6.9     7.5     8.4    10.0     6.8
  1969  22.2    18.6     4.9     NA      NA      7.7     9.3     9.4     7.0     7.5     8.5     9.2    10.8     7.4

  1970  23.8    20.6     5.8     NA      NA      8.9    10.7     9.9     8.9     9.2     9.8    10.3    12.1     8.6
  1971  25.3    22.5     6.9     NA      NA     10.5    12.4    11.1    10.4    10.7    11.6    11.9    13.8    10.0
  1972  26.6    24.6     9.2     NA      NA     13.7    14.7    13.4    12.6    12.7    14.5    14.2    16.6    11.8
  1973  28.7    26.4    12.5     NA      NA     18.5    20.5    17.5    17.1    15.0    20.0    18.4    20.3    13.2
  1974  31.8    31.4    15.3     NA      NA     22.6    24.6    19.2    19.9    17.6    24.7    22.4    23.5    15.1
  1975  35.7    34.6    17.5     NA      NA     29.0    31.1    26.3    23.1    22.1    30.1    28.4    30.8    19.0
  1976  38.7    40.8    18.8     NA      NA     31.9    32.9    27.0    24.3    21.6    32.0    31.3    34.2    17.9
  1977  42.0    42.0    23.0     NA      NA     37.1    36.7    29.8    28.8    24.0    37.6    36.0    36.5    19.6
  1978  45.4    42.1    31.5     NA      NA     45.4    44.1    36.7    35.8    28.8    46.2    40.4    40.2    25.1
  1979  49.9    44.5    32.0     NA      NA     51.7    51.6    44.0    42.0    35.6    53.5    43.9    45.7    33.0

  1980  55.8    49.2    32.8     NA      NA     57.7    53.2    51.1    46.1    40.5    57.0    49.0    51.5    43.7
  1981  61.3    53.7    36.1     NA      NA     49.5    46.2    46.0    39.3    36.9    47.4    46.9    47.5    44.1
  1982  67.3    58.6    33.5     NA      NA     42.1    43.0    45.1    38.8    36.5    47.1    46.4    41.1    42.0
  1983  69.1    62.5    36.1     NA      NA     41.3    42.0    43.0    38.6    38.1    46.1    45.0    37.1    39.0
  1984  71.5    61.7    37.2     NA      NA     39.7    39.2    40.7    36.3    37.8    42.6    44.1    37.3    37.2
  1985  75.3    61.8    38.5     NA      NA     40.8    40.9    42.9    37.2    39.1    43.3    45.8    39.5    39.0
  1986  78.7    63.0    57.3     NA      NA     55.6    54.6    57.9    52.4    52.1    61.1    58.1    51.6    47.8
  1987  80.9    68.6    68.3     NA      NA     68.6    70.6    69.2    66.0    63.3    76.2    72.3    61.8    60.2
  1988  84.2    76.4    78.4     NA      NA     70.9    74.3    72.5    70.4    65.5    78.0    79.3    68.1    68.3
  1989  86.9    84.1    77.3     NA      NA     70.1    72.3    71.4    69.1    68.1    73.4    78.4    71.6    67.7

  1990  91.0    92.7    79.3     NA      NA     86.6    90.4    88.0    86.4    86.8    87.7    91.7    86.2    81.7
  1991  95.8    99.9    90.3     NA      NA     91.5    90.5    90.2    89.4    92.9    89.4    93.3    91.8    90.5
  1992 100.0   100.0   100.0     NA      NA    100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0
  1993 102.9    93.3   119.3     NA      NA     97.4    97.4    96.0   100.0    84.2    98.1    88.8    73.3    88.7
  1994 105.8    88.8   132.4     NA      NA    102.1     NA    100.2   107.6    82.4   104.6    92.0    76.3    92.3
  1995 108.3    91.2   147.7     NA      NA    119.1     NA    114.3   128.3    85.3   121.2   107.1    86.6    95.9
  1996 110.7    91.1   129.3     NA      NA    116.3     NA    113.2   128.4    96.5   118.8   109.3    98.5    95.6
  1997 115.1    93.1   119.5     NA      NA    103.3     NA    101.9   114.0    91.1   105.8   104.5    90.1   104.6
  1998 120.0    90.3   111.3     NA      NA    102.6     NA    102.3   113.3    88.5   104.4   104.0    89.0   111.9

NA:  Not Available

Note:  The data relate to employees (wage and salary earners) in Belgium, Denmark, Italy, and the Netherlands,
and to all employed persons (employees and self-employed workers) in the other countries.

* Compensation adjusted to include changes in employment taxes that are not compensation to employees, but are labor
   costs to employers.

Source:  U.S. Department of Labor, Bureau of Labor Statistics, August 1999.
- 25 -

Table 9.  Unit labor costs in manufacturing, national currency basis, 14 countries or areas, 1950-1998
(Indexes:  1992=100)

       United                                                                          Nether-                 United
 Year  States  Canada* Japan   Korea   Taiwan  Belgium Denmark France* Germany Italy   lands   Norway  Sweden* Kingdom*

  1950   NA     20.2     NA      NA      NA      NA     11.0    12.2    25.5     7.5    25.6     9.0     9.5     6.3

  1955   NA     23.4    36.1     NA      NA      NA     13.8    16.9    25.4     7.7    29.8    11.8    13.7     8.3

  1960   NA     25.5    30.9     NA      NA     30.1    15.4    19.5    27.8     8.0    33.2    12.9    14.9     9.8
  1961   NA     24.9    31.8     NA      NA     31.5    16.3    20.3    29.7     8.2    35.9    13.6    15.6    10.5
  1962   NA     23.9    34.6     NA      NA     32.1    17.0    21.0    31.5     8.8    37.2    15.0    16.1    10.8
  1963   NA     24.0    35.7     NA      NA     34.2    17.9    21.7    32.2    10.1    39.6    15.2    16.8    10.7
  1964   NA     23.9    35.4     NA      NA     36.3    17.9    21.9    32.1    10.7    42.1    15.4    16.9    10.7
  1965   NA     24.1    38.3     NA      NA     38.3    18.9    22.2    33.3    10.3    44.4    16.0    17.3    11.4
  1966   NA     25.5    38.5     NA      NA     39.6    20.5    21.7    34.7    10.1    46.8    16.8    18.2    11.9
  1967   NA     26.6    38.1     NA      NA     40.9    21.4    22.0    34.5    10.6    48.4    18.1    18.6    11.7
  1968   NA     26.7    39.6     NA      NA     40.3    21.6    22.6    34.3    10.5    48.2    18.8    18.5    11.7
  1969   NA     27.4    41.0     NA      NA     40.4    23.4    22.6    35.0    11.1    50.0    19.0    18.7    12.5

  1970   NA     30.0    43.3     9.0    22.3    41.7    25.2    24.0    39.8    12.7    53.0    20.4    20.5    14.1
  1971   NA     30.0    47.3     9.6    23.4    45.2    27.1    25.4    42.9    14.4    57.2    22.5    22.0    15.3
  1972   NA     30.7    49.6    10.6    23.7    47.9    27.8    26.8    44.7    14.9    60.8    23.7    23.4    16.8
  1973   NA     31.4    55.7    12.6    27.5    51.2    30.6    28.7    47.5    16.1    65.4    25.1    24.4    17.9
  1974   NA     35.8    71.1    15.4    41.5    59.9    35.9    33.4    52.1    19.8    72.8    28.2    27.5    21.1
  1975   NA     42.7    80.6    18.0    42.1    69.5    38.9    39.4    55.2    25.9    84.5    34.2    33.3    28.7
  1976   NA     45.6    81.9    22.4    43.6    73.1    41.8    42.6    55.4    28.3    85.1    38.3    38.3    31.9
  1977  59.6    47.9    86.8    26.1    45.4    75.3    45.4    45.7    58.8    32.8    85.8    43.2    42.6    35.7
  1978  63.8    50.6    89.1    31.0    45.8    76.1    49.3    49.3    61.1    35.4    87.0    46.8    46.2    41.0
  1979  69.1    55.1    87.5    37.7    52.0    76.8    52.5    53.3    62.9    39.2    89.2    45.8    46.2    48.4

  1980  77.6    63.3    91.7    47.9    60.1    80.3    55.0    61.2    69.4    44.0    93.1    50.8    50.6    59.1
  1981  81.3    69.1    95.1    55.1    69.8    81.7    59.5    68.9    72.4    51.9    95.1    56.6    56.1    65.2
  1982  86.5    79.5    95.8    58.2    74.5    81.5    64.6    76.5    76.7    60.1    99.1    60.5    57.8    68.1
  1983  84.9    79.9    97.2    61.8    73.0    81.1    65.8    82.5    76.4    66.8    95.9    64.2    59.7    67.7
  1984  84.4    76.3    96.8    66.6    76.2    84.0    69.9    88.2    77.3    69.8    90.6    66.3    61.9    69.4
  1985  85.8    77.8    93.8    64.1    79.3    86.5    74.2    92.0    78.6    74.2    91.5    70.2    67.1    73.4
  1986  89.1    81.2    99.0    63.5    82.3    88.0    80.4    94.3    81.2    76.3    93.5    77.7    71.3    76.9
  1987  85.7    82.5    96.0    67.6    82.1    89.7    88.4    96.2    86.3    78.3    95.8    84.1    74.7    81.5
  1988  85.9    85.5    93.4    75.7    84.2    88.1    88.2    93.4    86.5    79.9    93.5    90.4    79.0    82.2
  1989  89.5    89.2    94.0    80.8    87.9    88.7    88.1    93.6    87.9    84.9    91.1    92.2    84.7    84.6

  1990  93.1    93.9    95.0    85.9    94.3    93.0    93.6    96.8    90.3    91.3    92.1    95.6    92.3    91.6
  1991  97.5    99.6    96.5    95.0    95.6    98.1    96.3    99.3    93.3    98.4    95.6   100.0   100.4    98.1
  1992 100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0
  1993 100.8    97.2   104.1   103.8   100.9   102.3   100.1   102.2   105.3   104.4   101.8   100.9    91.8   100.2
  1994  97.7    94.5   104.9   108.2   102.0    97.9    93.0    96.8   103.6   102.1    94.8   102.9    87.0    99.7
  1995  94.3    95.2   100.1   120.4   102.1    96.4    93.4    94.0   105.9   103.2    92.3   107.1    86.8   102.5
  1996  94.3    95.8    95.8   126.5   101.8    97.6    92.3    95.1   107.5   109.6    91.5   111.4    90.4   104.7
  1997  94.3    96.2    95.0   116.1   100.3    94.6    95.3    91.1   103.9   111.1    89.9   116.9    88.5   108.7
  1998  94.5    99.2    95.4   107.1    99.1    94.7    94.9    89.4   100.4   109.8    88.7   121.4    89.0   113.8

NA:  Not Available

Note:  The data relate to employees (wage and salary earners) in Korea, Taiwan, Belgium, Denmark, Italy, and the Netherlands,
and to all employed persons (employees and self-employed workers) in the other countries.

* Compensation adjusted to include changes in employment taxes that are not compensation to employees, but are labor
   costs to employers.

Source:  U.S. Department of Labor, Bureau of Labor Statistics, August 1999.
- 26 -

Table 10.  Unit labor costs in manufacturing, U.S. dollar basis, 14 countries or areas, 1950-1998
(Indexes:  1992=100)

       United                                                                          Nether-                 United
 Year  States  Canada* Japan   Korea   Taiwan  Belgium Denmark France* Germany Italy   lands   Norway  Sweden* Kingdom*

  1950   NA     22.4     NA      NA      NA      NA      9.6    18.4     9.5    14.7    11.8     7.8    10.7    10.0

  1955   NA     28.7    12.7     NA      NA      NA     12.0    25.6     9.4    15.1    13.8    10.2    15.5    13.2

  1960   NA     31.8    10.9     NA      NA     19.4    13.5    21.1    10.4    16.0    15.5    11.3    16.8    15.6
  1961   NA     29.7    11.2     NA      NA     20.3    14.3    21.9    11.6    16.4    17.4    11.9    17.6    16.7
  1962   NA     27.1    12.1     NA      NA     20.7    14.9    22.7    12.3    17.4    18.2    13.0    18.2    17.1
  1963   NA     26.9    12.5     NA      NA     22.0    15.7    23.5    12.6    20.1    19.3    13.2    18.9    17.0
  1964   NA     26.8    12.4     NA      NA     23.5    15.6    23.7    12.6    21.1    20.5    13.3    19.1    16.9
  1965   NA     27.1    13.4     NA      NA     24.8    16.5    24.0    13.0    20.3    21.7    13.9    19.6    18.0
  1966   NA     28.6    13.5     NA      NA     25.6    17.9    23.4    13.6    19.9    22.7    14.6    20.5    18.8
  1967   NA     29.8    13.3     NA      NA     26.5    18.5    23.7    13.5    20.9    23.7    15.7    21.0    18.3
  1968   NA     30.0    13.9     NA      NA     25.9    17.4    24.2    13.4    20.7    23.4    16.4    20.9    15.9
  1969   NA     30.8    14.5     NA      NA     25.9    18.8    23.1    13.9    21.8    24.3    16.5    21.0    16.9

  1970   NA     34.7    15.3    22.8    14.0    27.0    20.3    23.0    17.1    24.9    25.8    17.8    23.0    19.2
  1971   NA     35.9    17.3    21.6    14.7    29.9    22.1    24.4    19.3    28.7    28.8    19.9    25.1    21.2
  1972   NA     37.5    20.8    21.2    14.9    35.0    24.1    28.2    21.9    31.4    33.3    22.3    28.7    23.8
  1973   NA     38.0    26.1    24.8    18.1    42.4    30.7    34.3    28.0    34.2    41.4    27.2    32.7    24.8
  1974   NA     44.3    30.9    29.8    27.5    49.5    35.6    36.8    31.5    37.6    47.7    31.7    36.2    28.0
  1975   NA     50.8    34.5    29.2    27.9    60.9    40.9    48.7    35.1    48.9    58.9    40.7    46.8    36.1
  1976   NA     55.9    35.0    36.3    28.9    60.9    41.8    47.2    34.4    41.9    56.7    43.6    51.3    32.6
  1977  59.6    54.5    41.1    42.3    30.1    67.6    45.7    49.2    39.6    45.8    61.5    50.4    55.5    35.3
  1978  63.8    53.7    54.2    50.3    31.1    77.8    54.1    58.0    47.6    51.4    70.8    55.5    59.5    44.6
  1979  69.1    56.8    50.9    61.2    36.3    84.2    60.3    66.4    53.6    58.1    78.2    56.2    62.8    58.2

  1980  77.6    65.4    51.3    61.9    42.0    88.3    58.9    76.7    59.6    63.3    82.4    63.9    69.6    77.8
  1981  81.3    69.6    54.6    63.5    47.6    70.6    50.4    67.0    49.9    56.2    66.9    61.3    64.6    74.7
  1982  86.5    77.8    48.8    62.4    47.9    57.2    46.7    61.5    49.3    54.7    65.2    58.2    53.6    67.4
  1983  84.9    78.3    51.8    62.5    45.9    51.0    43.4    57.3    46.7    54.2    59.1    54.7    45.3    58.1
  1984  84.4    71.2    51.7    64.7    48.4    46.8    40.8    53.5    42.4    49.0    49.6    50.5    43.6    52.5
  1985  85.8    68.9    49.9    58.4    50.0    46.9    42.3    54.2    41.7    47.9    48.5    50.8    45.4    53.9
  1986  89.1    70.6    74.5    56.4    54.7    63.4    60.0    72.1    58.5    63.0    67.2    65.3    58.3    63.9
  1987  85.7    75.2    84.2    64.3    65.0    77.2    77.9    84.7    74.9    74.4    83.1    77.5    68.5    75.7
  1988  85.9    83.9    92.4    80.9    74.0    77.0    79.0    82.9    76.9    75.6    83.1    86.1    75.0    82.9
  1989  89.5    91.0    86.3    94.0    83.8    72.3    72.6    77.7    73.0    76.2    75.5    82.9    76.4    78.5

  1990  93.1    97.2    83.1    94.9    88.2    89.5    91.3    94.1    87.3    93.8    88.9    95.0    90.8    92.5
  1991  97.5   105.0    90.9   101.1    89.9    92.3    90.8    93.1    87.8    97.6    89.8    95.7    96.6    98.2
  1992 100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0
  1993 100.8    91.1   118.8   101.1    96.1    95.1    93.2    95.5    99.4    81.8    96.3    88.3    68.6    85.2
  1994  97.7    83.6   130.1   105.2    97.0    94.2    88.3    92.4    99.8    78.1    91.6    90.7    65.7    86.4
  1995  94.3    83.8   135.1   122.3    96.9   105.2   100.7    99.8   115.5    78.0   101.2   105.0    70.8    91.6
  1996  94.3    84.9   111.7   123.3    93.3   101.4    96.1    98.4   111.6    87.5    95.4   107.1    78.5    92.5
  1997  94.3    83.9    99.5    95.8    87.7    84.9    87.0    82.6    93.5    80.3    81.0   102.5    67.5   100.8
  1998  94.5    80.8    92.3    60.0    74.3    83.8    85.5    80.2    89.1    77.9    78.6    99.9    65.2   106.8

NA:  Not Available

Note:  The data relate to employees (wage and salary earners) in Korea, Taiwan, Belgium, Denmark, Italy, and the Netherlands,
and to all employed persons (employees and self-employed workers) in the other countries.

* Compensation adjusted to include changes in employment taxes that are not compensation to employees, but are labor
   costs to employers.

Source:  U.S. Department of Labor, Bureau of Labor Statistics, August 1999.
- 27 -

Table 11.  Exchange rates, 14 countries or areas, 1950-1998 (Value of foreign currency relative to U.S. dollar)
(Indexes:  1992=100)

       United                                                                          Nether-                 United
 Year  States  Canada  Japan   Korea   Taiwan  Belgium Denmark France  Germany Italy   lands   Norway  Sweden  Kingdom

  1950 100.0   110.5    35.2     NA      NA      NA     87.5   151.3    37.2   197.3    46.2    87.1   112.6   158.6

  1955 100.0   122.5    35.2     NA      NA      NA     87.4   151.2    37.1   197.1    46.1    87.0   112.6   158.0

  1960 100.0   124.6    35.2     NA      NA     64.5    87.6   107.9    37.4   198.4    46.6    87.1   112.7   159.0
  1961 100.0   119.4    35.1     NA      NA     64.5    87.4   107.9    38.9   198.4    48.5    87.0   112.7   158.6
  1962 100.0   113.1    35.1     NA      NA     64.6    87.5   108.0    39.1   198.5    48.8    87.1   113.0   159.0
  1963 100.0   112.0    35.1     NA      NA     64.5    87.4   108.0    39.2   198.2    48.8    86.9   112.3   158.5
  1964 100.0   112.0    35.0     NA      NA     64.6    87.3   108.0    39.3   197.3    48.8    86.8   113.1   158.1
  1965 100.0   112.1    35.1     NA      NA     64.8    87.3   108.0    39.1   197.2    48.8    86.9   112.9   158.3
  1966 100.0   112.2    35.0     NA      NA     64.5    87.4   107.7    39.1   197.3    48.6    86.9   112.8   158.1
  1967 100.0   112.0    35.0     NA      NA     64.7    86.5   107.6    39.2   197.4    48.8    86.9   112.9   155.7
  1968 100.0   112.2    35.2     NA      NA     64.4    80.7   106.9    39.1   197.7    48.6    87.0   112.7   135.5
  1969 100.0   112.2    35.4     NA      NA     64.1    80.3   102.2    39.8   196.4    48.5    87.0   112.7   135.3

  1970 100.0   115.8    35.4   252.7    62.9    64.7    80.5    95.7    42.8   196.5    48.6    86.9   112.3   135.6
  1971 100.0   119.7    36.5   226.0    62.9    66.2    81.6    96.1    44.9   199.3    50.4    88.3   114.1   138.4
  1972 100.0   122.0    41.8   199.7    62.9    73.0    86.8   104.9    49.0   211.1    54.8    94.3   122.5   141.6
  1973 100.0   120.8    46.8   197.0    65.8    82.8   100.2   119.3    59.0   211.8    63.3   108.2   133.8   138.8
  1974 100.0   123.6    43.5   194.0    66.2    82.7    99.3   110.1    60.5   189.4    65.5   112.6   131.4   132.5
  1975 100.0   118.8    42.7   162.1    66.2    87.6   105.3   123.6    63.6   188.9    69.7   119.2   140.6   125.8
  1976 100.0   122.6    42.8   162.1    66.2    83.3    99.9   110.9    62.1   148.4    66.6   113.9   133.7   102.2
  1977 100.0   113.7    47.3   162.1    66.2    89.7   100.6   107.7    67.3   139.6    71.7   116.8   130.4    98.8
  1978 100.0   106.0    60.8   162.1    67.9   102.3   109.6   117.6    77.9   145.2    81.4   118.6   129.0   108.6
  1979 100.0   103.2    58.1   162.1    69.8   109.6   114.8   124.4    85.2   148.3    87.7   122.7   135.9   120.2

  1980 100.0   103.4    55.9   129.2    69.8   110.0   107.1   125.3    85.9   143.9    88.5   125.8   137.7   131.7
  1981 100.0   100.8    57.5   115.2    68.3    86.4    84.6    97.3    69.0   108.2    70.4   108.2   115.0   114.6
  1982 100.0    97.9    50.9   107.2    64.3    70.2    72.4    80.5    64.3    91.0    65.8    96.2    92.7    99.0
  1983 100.0    98.1    53.4   101.1    62.8    62.9    66.0    69.5    61.2    81.1    61.6    85.1    75.9    85.8
  1984 100.0    93.3    53.4    97.1    63.5    55.7    58.3    60.6    54.9    70.2    54.8    76.2    70.4    75.7
  1985 100.0    88.5    53.2    91.0    63.1    54.2    57.0    58.9    53.1    64.5    53.0    72.3    67.7    73.5
  1986 100.0    87.0    75.3    88.7    66.5    72.0    74.6    76.4    72.0    82.6    71.8    84.0    81.7    83.1
  1987 100.0    91.1    87.7    95.0    79.2    86.1    88.2    88.0    86.9    95.0    86.8    92.2    91.8    92.8
  1988 100.0    98.2    98.9   106.8    87.9    87.4    89.6    88.8    88.9    94.6    88.9    95.2    94.9   100.8
  1989 100.0   102.1    91.8   116.4    95.3    81.6    82.5    83.0    83.0    89.8    82.9    89.9    90.2    92.7

  1990 100.0   103.6    87.4   110.4    93.5    96.2    97.5    97.2    96.6   102.8    96.6    99.4    98.4   101.0
  1991 100.0   105.5    94.2   106.5    94.0    94.0    94.3    93.7    94.0    99.3    93.9    95.7    96.3   100.1
  1992 100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0
  1993 100.0    93.7   114.1    97.4    95.2    93.0    93.1    93.4    94.4    78.3    94.6    87.5    74.7    85.0
  1994 100.0    88.4   124.1    97.2    95.1    96.2    95.0    95.4    96.3    76.5    96.7    88.1    75.5    86.7
  1995 100.0    88.1   134.9   101.5    95.0   109.1   107.8   106.2   109.1    75.6   109.6    98.1    81.6    89.4
  1996 100.0    88.6   116.5    97.5    91.6   103.8   104.1   103.5   103.8    79.9   104.3    96.2    86.8    88.4
  1997 100.0    87.3   104.7    82.5    87.4    89.8    91.3    90.7    90.0    72.3    90.1    87.7    76.2    92.7
  1998 100.0    81.5    96.8    56.0    75.0    88.5    90.1    89.7    88.8    70.9    88.7    82.3    73.3    93.8

NA:  Not Available

Source:  U.S. Department of Labor, Bureau of Labor Statistics, August 1999.
- 28 -

Table 12.  Average annual compensation in manufacturing, national currency basis, 14 countries or areas, 1950-1998
(Indexes:  1992=100)

       United                                                                          Nether-                 United
 Year  States  Canada* Japan   Korea   Taiwan  Belgium Denmark France* Germany Italy   lands   Norway  Sweden* Kingdom*

  1950   8.8     6.1     NA      NA      NA      NA      3.5     2.0     4.9     0.9     4.0     2.9     2.4     1.9

  1955  11.9     8.3     3.7     NA      NA      NA      4.7     3.4     7.3     1.4     5.9     4.4     3.8     2.7

  1960  14.8    10.7     5.3     NA      NA      6.8     6.0     5.2    10.7     1.8     8.4     6.0     5.0     3.5
  1961  15.3    10.9     6.1     NA      NA      7.2     6.6     5.7    11.8     2.0     9.2     6.4     5.5     3.7
  1962  16.0    11.4     6.8     NA      NA      7.8     7.2     6.3    13.0     2.3     9.8     7.0     6.1     3.9
  1963  16.6    11.9     7.6     NA      NA      8.6     7.8     6.9    13.7     2.7    10.7     7.5     6.6     4.0
  1964  17.4    12.5     8.5     NA      NA      9.6     8.5     7.5    14.8     2.9    12.3     8.0     7.1     4.4
  1965  17.9    13.3     9.4     NA      NA     10.5     9.4     8.0    16.2     3.0    13.8     8.7     7.8     4.7
  1966  18.8    14.1    10.4     NA      NA     11.5    10.4     8.5    17.4     3.2    15.3     9.5     8.6     5.0
  1967  19.5    14.9    11.7     NA      NA     12.4    11.6     9.1    17.8     3.6    16.9    10.5     9.3     5.1
  1968  20.9    15.8    13.5     NA      NA     13.3    12.5    10.0    19.4     3.8    18.5    11.3     9.9     5.5
  1969  22.3    17.0    15.8     NA      NA     14.4    13.8    10.9    21.3     4.2    20.7    12.2    10.6     6.0

  1970  23.4    18.1    18.6     NA      NA     16.0    15.3    12.1    24.8     5.0    23.5    13.4    11.9     6.8
  1971  24.9    19.1    21.2     NA      NA     18.2    17.5    13.5    27.2     5.6    26.6    15.2    13.3     7.6
  1972  26.6    20.5    24.3     NA      NA     21.0    19.0    14.7    29.8     6.2    30.1    16.7    14.5     8.7
  1973  28.6    22.1    29.4     NA      NA     24.3    21.8    16.6    33.4     7.4    35.2    18.7    15.9    10.1
  1974  31.2    25.4    37.0     NA      NA     29.2    26.9    19.5    37.2     9.3    40.7    21.7    18.5    11.7
  1975  34.5    28.8    42.1     NA      NA     33.3    31.1    23.1    40.0    11.5    45.7    25.8    22.3    15.5
  1976  37.8    33.0    46.7     NA      NA     39.3    34.8    26.5    44.3    14.3    50.9    29.1    25.8    18.1
  1977  41.2    36.6    51.6     NA      NA     42.3    38.2    29.9    47.7    16.9    55.3    32.1    27.9    20.6
  1978  44.6    39.5    55.2     NA      NA     45.2    41.6    33.4    50.6    19.4    59.2    34.6    30.3    23.9
  1979  48.6    42.8    59.1     NA      NA     48.1    46.5    37.8    54.1    23.3    62.9    35.8    32.2    28.3

  1980  53.8    46.8    62.9     NA      NA     52.7    51.6    43.5    57.9    27.4    66.7    39.1    35.4    33.0
  1981  59.1    52.4    66.8     NA      NA     56.1    56.1    49.8    60.9    33.1    70.2    43.6    39.3    37.8
  1982  63.6    58.5    69.9     NA      NA     60.0    62.0    56.7    64.1    39.0    75.3    48.1    42.4    42.0
  1983  67.2    63.2    71.9     NA      NA     64.2    67.2    62.3    67.2    45.6    78.9    53.0    47.3    45.2
  1984  70.5    65.5    74.8     NA      NA     69.3    70.8    67.7    70.3    52.3    80.7    57.9    52.3    49.2
  1985  74.3    69.4    77.6     NA      NA     74.1    73.0    72.9    73.1    58.3    82.9    63.1    57.2    53.7
  1986  77.6    72.2    81.1     NA      NA     76.2    76.3    76.1    75.6    62.2    85.7    68.9    61.5    58.3
  1987  80.2    75.5    83.3     NA      NA     79.2    81.5    79.4    78.8    67.0    88.1    76.3    66.4    65.3
  1988  84.2    79.5    85.6     NA      NA     81.9    84.4    82.7    81.7    72.0    88.6    81.7    70.6    69.9
  1989  86.9    83.4    89.9     NA      NA     86.4    88.2    86.9    84.6    78.7    89.0    86.0    77.9    74.6

  1990  90.5    89.8    95.5     NA      NA     91.7    92.1    91.1    89.2    85.4    91.2    90.9    87.0    82.5
  1991  94.6    94.6    98.9     NA      NA     97.3    95.6    95.7    94.3    93.7    95.4    96.4    94.6    91.3
  1992 100.0   100.0   100.0     NA      NA    100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0
  1993 104.3   101.0   102.1     NA      NA    103.2   103.8   102.7   102.8   105.4   103.7   101.8   100.5   104.1
  1994 108.1   102.4   104.3     NA      NA    107.4   106.0   105.0   108.5   108.6   108.2   105.0   106.8   107.8
  1995 110.0   105.1   107.7     NA      NA    109.2   110.0   107.1   113.6   113.7   110.9   108.8   114.3   109.8
  1996 112.3   105.7   110.1     NA      NA    112.6   113.8   109.1   117.6   120.9   114.1   112.6   122.5   110.7
  1997 117.6   109.9   112.6     NA      NA    115.8   118.2   111.7   120.5   126.4   117.3   117.5   127.9   115.5
  1998 122.1   113.5   111.5     NA      NA    116.8   120.4   113.6   122.8   125.0   117.4   124.8   131.3   121.7

NA:  Not Available

Note:  The data relate to employees (wage and salary earners) in Belgium, Denmark, Italy, and the Netherlands,
and to all employed persons (employees and self-employed workers) in the other countries.

* Compensation adjusted to include changes in employment taxes that are not compensation to employees, but are labor
   costs to employers.

Source:  U.S. Department of Labor, Bureau of Labor Statistics, August 1999.
- 29 -

Table 13.  Real hourly compensation in manufacturing, CPI basis, 14 countries or areas, 1950-1998
(Indexes:  1992=100)

       United                                                                          Nether-                 United
 Year  States  Canada  Japan   Korea   Taiwan  Belgium Denmark France  Germany Italy   lands   Norway  Sweden  Kingdom

  1950  50.7    38.7     NA      NA      NA      NA     28.6    19.8    11.7    18.4    17.1    26.3    25.2    26.6

  1955  61.3    48.7    18.2     NA      NA      NA     31.9    26.7    15.9    21.4    21.2    29.4    30.5    29.1

  1960  70.7    57.1    23.2     NA      NA     24.5    38.7    30.1    23.6    24.5    26.4    36.3    35.3    34.1
  1961  72.1    58.1    25.6     NA      NA     25.7    41.7    32.2    25.8    26.4    29.8    38.7    37.9    35.2
  1962  74.1    59.6    27.4     NA      NA     27.2    42.5    34.0    28.4    29.6    31.0    40.3    40.3    35.5
  1963  75.3    61.2    28.4     NA      NA     29.4    43.9    35.4    29.4    32.6    33.1    42.0    43.3    36.4
  1964  77.4    62.7    30.8     NA      NA     31.9    45.7    37.2    31.1    32.8    36.2    42.5    45.7    37.6
  1965  77.8    64.8    32.2     NA      NA     34.0    47.7    39.3    33.1    33.7    39.0    45.0    48.0    39.2
  1966  79.1    67.1    33.8     NA      NA     36.1    50.8    40.6    34.7    35.1    41.4    47.6    49.4    40.8
  1967  80.9    68.2    36.4     NA      NA     38.3    53.0    42.5    36.1    37.9    44.3    50.9    52.5    41.8
  1968  83.5    69.8    40.2     NA      NA     39.9    54.0    46.3    38.3    40.0    47.5    54.2    56.0    42.9
  1969  85.1    72.1    45.3     NA      NA     42.1    58.7    47.5    41.0    42.7    50.2    58.0    58.8    44.2

  1970  86.2    74.6    50.0     NA      NA     46.1    62.9    51.1    46.7    49.5    55.6    58.3    61.7    47.8
  1971  87.6    77.0    54.4     NA      NA     51.1    68.3    54.1    49.8    54.3    59.1    62.8    64.0    49.7
  1972  89.3    78.6    59.7     NA      NA     57.3    71.0    56.2    52.3    57.6    62.9    65.3    67.4    53.5
  1973  90.6    79.3    65.4     NA      NA     63.6    78.8    60.0    55.4    61.4    69.4    68.5    69.7    55.8
  1974  90.6    83.0    69.5     NA      NA     69.4    82.7    62.7    58.9    67.2    75.6    73.4    74.7    57.8
  1975  93.1    85.9    72.5     NA      NA     74.3    90.0    68.4    61.3    72.4    78.5    78.6    83.5    62.0
  1976  95.3    91.1    71.4     NA      NA     78.9    92.1    71.5    63.1    77.1    80.5    83.2    88.3    61.7
  1977  97.3    93.6    72.8     NA      NA     79.5    91.8    74.2    66.7    76.5    82.3    85.6    86.0    60.1
  1978  97.7    92.2    74.5     NA      NA     81.6    91.9    76.5    69.9    78.4    85.6    87.4    88.8    64.4
  1979  96.4    91.9    76.4     NA      NA     83.1    93.7    78.4    72.2    82.0    88.2    87.6    89.8    67.4

  1980  95.0    92.1    75.4     NA      NA     86.6    92.0    79.5    74.6    79.4    87.4    86.0    87.5    69.0
  1981  94.7    91.3    77.0     NA      NA     87.8    90.7    81.2    74.6    80.9    85.7    84.1    86.2    72.0
  1982  97.8    92.5    78.6     NA      NA     84.5    89.7    86.2    75.0    82.0    85.8    84.1    85.0    72.4
  1983  97.4    93.1    79.2     NA      NA     86.1    89.7    86.9    76.0    83.4    87.4    85.1    84.3    74.4
  1984  96.5    92.5    79.8     NA      NA     88.0    89.2    87.7    77.7    86.6    87.8    87.7    85.0    76.3
  1985  98.2    94.0    81.4     NA      NA     88.5    90.9    89.6    80.7    89.6    90.4    90.8    87.2    77.8
  1986 100.7    93.7    85.0     NA      NA     89.7    89.5    90.9    84.1    87.9    93.9    92.4    90.3    81.5
  1987  99.9    93.2    86.9     NA      NA     91.0    94.1    91.5    87.7    88.8    97.4    96.4    92.3    88.1
  1988  99.9    92.6    87.8     NA      NA     91.5    93.2    92.6    90.3    87.9    96.6    96.0    94.0    87.7
  1989  98.3    93.4    91.1     NA      NA     94.1    94.1    94.1    92.3    90.3    96.3    96.1    98.1    87.7

  1990  97.7    95.9    95.3     NA      NA     95.4    96.9    96.0    96.6    94.6    96.5    97.7    97.4    88.9
  1991  98.7    96.1    97.6     NA      NA     99.7    98.0    98.8    99.1    98.7    98.1    99.8    97.2    93.9
  1992 100.0   100.0   100.0     NA      NA    100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0
  1993 100.0    97.9   103.2     NA      NA    102.0   103.3   100.7   102.1   103.2   101.1    99.2    95.3   102.7
  1994 100.1    98.4   104.7     NA      NA    100.9     NA    101.2   104.8    99.6   102.7   100.7    96.2   102.3
  1995  99.7    99.4   107.4     NA      NA    102.3     NA    102.0   108.7    98.9   103.1   102.7    96.8    99.7
  1996  99.0    97.1   108.8     NA      NA    102.8     NA    101.6   112.8   102.0   104.2   105.6   102.7    98.1
  1997 100.6    99.2   109.9     NA      NA    104.0     NA    103.1   113.3   104.4   105.2   107.9   105.8    99.2
  1998 103.3   102.2   110.1     NA      NA    103.7     NA    103.8   113.3   101.6   103.5   112.0   107.5   101.4

NA:  Not Available

Note:  The data relate to employees (wage and salary earners) in Belgium, Denmark, Italy, and the Netherlands,
and to all employed persons (employees and self-employed workers) in the other countries.

Source:  U.S. Department of Labor, Bureau of Labor Statistics, August 1999.
- 30 -

Table 14.  Real average annual compensation in manufacturing, CPI basis, 14 countries or areas, 1950-1998
(Indexes:  1992=100)

       United                                                                          Nether-                 United
 Year  States  Canada  Japan   Korea   Taiwan  Belgium Denmark France  Germany Italy   lands   Norway  Sweden  Kingdom

  1950  51.4    41.6     NA      NA      NA      NA     40.2    24.3    17.2    20.2    22.3    34.4    32.8    30.9

  1955  62.2    50.3    21.6     NA      NA      NA     44.0    32.5    23.3    24.1    27.7    38.6    39.3    34.2

  1960  70.3    58.7    28.6     NA      NA     30.8    50.7    36.6    31.0    28.0    34.8    45.8    43.1    39.3
  1961  71.8    59.4    31.1     NA      NA     32.2    53.1    39.4    33.4    29.8    37.6    48.0    45.8    40.1
  1962  74.5    61.4    32.6     NA      NA     34.2    54.5    41.5    35.8    32.4    39.0    49.9    48.4    39.9
  1963  76.0    63.2    33.6     NA      NA     37.0    55.4    43.1    36.5    35.9    41.4    51.7    51.5    40.9
  1964  78.7    65.0    36.2     NA      NA     40.0    58.3    45.0    38.7    36.1    44.9    52.6    53.7    42.6
  1965  79.9    67.3    37.2     NA      NA     41.9    60.6    47.2    41.0    35.8    48.2    54.5    56.0    43.9
  1966  81.5    69.1    39.2     NA      NA     44.1    63.4    48.9    42.4    37.8    50.8    57.8    57.5    44.9
  1967  81.9    70.3    42.3     NA      NA     46.2    65.4    50.7    42.9    41.4    54.2    61.2    60.2    45.6
  1968  84.4    71.8    46.6     NA      NA     48.2    65.1    53.7    46.1    43.6    57.1    63.6    62.8    47.2
  1969  85.3    73.9    51.8     NA      NA     50.3    69.9    56.4    49.5    46.3    59.5    66.5    64.8    48.6

  1970  84.6    75.9    56.6     NA      NA     53.6    72.5    59.9    56.0    52.6    64.7    66.3    67.9    51.8
  1971  86.2    78.1    60.6     NA      NA     58.5    78.5    63.0    58.4    56.2    68.1    70.8    70.2    52.5
  1972  89.4    79.8    66.1     NA      NA     64.2    79.8    64.7    60.7    59.2    71.5    72.5    72.0    56.0
  1973  90.5    79.9    71.9     NA      NA     69.5    83.9    68.0    63.8    63.8    77.3    75.6    73.1    59.1
  1974  88.8    83.1    73.2     NA      NA     73.9    89.8    70.1    66.5    67.4    81.7    80.0    77.5    59.3
  1975  89.9    84.9    74.7     NA      NA     74.9    94.6    74.2    67.4    71.3    83.2    85.3    85.0    63.4
  1976  93.2    90.2    75.7     NA      NA     80.9    97.3    77.8    71.5    76.0    85.2    87.9    88.8    63.7
  1977  95.5    92.6    77.3     NA      NA     81.2    96.0    80.0    74.3    75.0    86.7    89.0    85.9    62.4
  1978  95.9    91.8    79.4     NA      NA     83.2    95.0    81.9    76.9    76.6    89.2    88.8    86.3    66.6
  1979  93.9    91.2    82.0     NA      NA     84.7    96.8    83.6    79.2    79.6    90.9    87.5    86.0    69.4

  1980  91.6    90.5    80.9     NA      NA     87.0    95.7    84.9    80.7    77.3    90.6    86.3    83.0    68.8
  1981  91.2    89.7    82.0     NA      NA     86.1    93.2    85.6    79.7    78.7    89.3    84.6    82.1    70.6
  1982  92.5    90.3    83.5     NA      NA     84.7    93.5    87.2    79.7    79.6    90.4    83.8    81.3    71.8
  1983  94.6    92.2    84.3     NA      NA     84.1    94.7    87.4    80.9    81.0    92.2    85.3    81.7    73.9
  1984  95.2    91.7    85.7     NA      NA     85.4    93.9    88.5    82.7    84.0    91.3    87.7    83.9    76.4
  1985  96.9    93.4    87.2     NA      NA     87.1    92.5    89.8    84.3    86.2    91.6    90.4    85.3    78.7
  1986  99.3    93.3    90.5     NA      NA     88.4    93.3    91.3    87.3    86.7    94.6    92.1    88.0    82.6
  1987  99.1    93.4    92.8     NA      NA     90.5    95.8    92.3    90.9    89.2    97.7    93.7    91.0    88.8
  1988  99.9    94.6    94.8     NA      NA     92.5    94.9    93.7    93.2    91.3    97.6    94.1    92.6    90.6
  1989  98.3    94.5    97.4     NA      NA     94.7    94.6    95.1    93.9    93.7    96.8    94.7    96.3    89.6

  1990  97.1    96.3   100.3     NA      NA     97.0    96.3    96.5    96.4    95.8    96.9    96.2    96.7    90.6
  1991  97.4    95.9   100.6     NA      NA     99.7    97.6    98.2    98.2    98.8    98.3    98.7    96.4    94.8
  1992 100.0   100.0   100.0     NA      NA    100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0
  1993 101.3    99.2   100.8     NA      NA    100.5   102.5   100.6    99.1   101.1   101.1    99.5    97.8   102.5
  1994 102.4   100.3   102.3     NA      NA    102.1   102.6   101.2   101.7   100.3   102.7   101.2   101.7   103.6
  1995 101.3   100.9   105.7     NA      NA    102.3   104.3   101.5   104.9    99.7   103.5   102.4   104.1   102.0
  1996 100.4    99.8   107.9     NA      NA    103.3   105.7   101.3   107.2   102.0   104.5   104.6   111.0   100.4
  1997 102.8   102.2   108.4     NA      NA    104.6   107.4   102.5   107.9   104.8   105.0   106.5   114.4   101.5
  1998 105.1   104.6   106.7     NA      NA    104.5   107.4   103.5   109.0   101.9   103.2   110.5   116.2   103.5

NA:  Not Available

Note:  The data relate to employees (wage and salary earners) in Belgium, Denmark, Italy, and the Netherlands,
and to all employed persons (employees and self-employed workers) in the other countries.

Source:  U.S. Department of Labor, Bureau of Labor Statistics, August 1999.


TECHNICAL NOTES

The Bureau of Labor Statistics constructs trend indexes of manufacturing 
labor productivity (output per hour), hourly compensation costs, and unit 
labor costs from three basic aggregate measures-output, total labor hours, and 
total compensation.  The hours and compensation measures refer to all employed 
persons, including self-employed persons and unpaid family workers, in the 
United States, Canada, Japan, France, Germany, Norway, Sweden, and the United 
Kingdom, and to all employees (wage and salary earners) in the other 
economies. For all of the countries, the term "hours" refers to hours worked.
In general, the measures relate to total manufacturing as defined by the 
International Standard Industrial Classification (ISIC).  However, the 
measures for France (through 1989) refer to mining and manufacturing less 
energy-related products, and the measures for Denmark include mining and 
exclude manufacturing handicrafts from 1960 to 1966.
The comparisons in this news release make use of data made available to BLS 
as of June 1999 by the statistical agencies of the individual countries.  For 
some countries, for the most recent years, these data are based on the 
European System of Integrated National Accounts (ESA 95) or on the United 
Nations revised System of National Accounts (SNA 93).  For other countries, 
data were compiled according to previously used systems.
To obtain historical time series, BLS may link together data series 
compiled according to different accounting systems.

Output.  For most countries, the output measures are value added in 
manufacturing from the national accounts.  However, output for Japan prior to 
1970 and for the Netherlands prior to 1960 are indexes of industrial 
production.  The national accounts measures for the United Kingdom are 
essentially identical to their indexes of industrial production.
In this release, manufacturing output data for the United States from 1977 
on are the gross product originating (value added) measures prepared by the 
Bureau of Economic Analysis (BEA) of the U.S. Department of Commerce.  U. S. 
gross product originating is a chain-type annual-weighted series.1  Comparable 
manufacturing output data currently are not available prior to 1977.
The historical real output series for many of the other countries are 
estimated using fixed price weights, with the weights updated periodically 
(for example, every 5 or 10 years).  The Japanese value-added series is based 
upon one set of fixed price weights since 1970.  Annual-weighted real output 
measures are recommended by the SNA 93 and ESA 95 national accounts systems.
Japanese real output for 1996 and subsequent years was revised following 
revisions to the deflators for electronic equipment and components.  Korean 
national accounts data (output and employee compensation) for the period from 
1990 reflect the benchmark revisions estimated from new 1995 input-output 
tables.
To preserve the comparability of the U.S. measures with those of the other 
economies covered, BLS uses gross product originating in manufacturing for the 
United States for these comparative measures.  The gross product originating 
series differs from the manufacturing output series that BLS publishes in its 
news releases on quarterly measures of U.S. productivity and costs.  The 
quarterly measures are on a  "sectoral output" basis rather than a value-added 
basis.  Sectoral output is gross output less intra-sector transactions.

Labor Input. The total hours measures are developed from statistics of 
manufacturing employment and average hours.  The series used for France (from 
1970 forward), Norway, Sweden, and Canada are official series published with 
the national accounts.  Where official total hours series are not available, 
the measures are developed by BLS using employment figures published with the 
national accounts, or other comprehensive employment series, and estimates of 
average annual hours worked.  For Germany after 1959, BLS uses aggregate hours 
worked, which are developed by a research institute of the Ministry of Labor 
for use with the national accounts employment figures; earlier figures are BLS 
estimates.  For the other countries, and Germany before 1959, BLS constructs 
its own estimates of average hours.

Denmark has not published estimates of average hours for 1994-1998, and, 
therefore, the BLS measure of labor input for Denmark ends in 1993.  BLS is in 
the process of assessing the comparability of the employment and hours time 
series data available from Korean and Taiwanese statistical sources.

Compensation (labor cost).  The compensation measures are from the national 
accounts.  Compensation includes employer expenditures for legally required 
insurance programs and contractual and private benefit plans, in addition to 
all payments made in cash or in-kind directly to employees.  For Canada, 
France, and Sweden, compensation is increased to account for other significant 
taxes on payroll or employment.  For the United Kingdom, compensation is 
reduced between 1967 and 1991 to account for subsidies.  Self-employed workers 
are included in the all-employed-persons measures by assuming that their 
hourly compensation is equal to the average for wage and salary employees.

Current Indicators.  The measures for recent years may be based on current 
indicators of output (such as industrial production indexes), employment, 
average hours, and hourly compensation until national accounts and other 
statistics, normally used for the long-term measures, become available.

Trade-Weighted Measures.  The trade weights for Canada, Japan, and the 
European countries were obtained by rescaling a series of weights, developed 
by the International Monetary Fund, based on average trade flows over the 
1989-91 period.  These  weights are based on aggregate trade data for total 
manufacturing and take account of both bilateral trade and the relative 
importance of "third country" markets.  The 1989-91 weights do not include 
Korea and Taiwan.   BLS developed weights for Korea and Taiwan by using data 
from an earlier study from the International Monetary Fund and other sources.

The following weights were used for the entire period for which trade-
weighted unit labor cost measures are produced:

      Country            Weight       Country              Weight
  
      Canada             23.94        Netherlands           2.13
      Japan              28.91        Norway                0.45
      Belgium             2.02        Sweden                1.79
      Denmark             0.45        United Kingdom        8.50
      France              5.58        Korea                 5.43
      Germany            10.98        Taiwan                5.48
      Italy               4.35


Level comparisons.  The BLS measures are limited to trend comparisons. BLS 
does not prepare level comparisons of manufacturing productivity and unit 
labor costs because of data limitations and technical problems in comparing 
the levels of manufacturing output among countries.  Each country measures 
manufacturing output in its own currency units.  To compare outputs among 
countries, a common unit of measure is needed.  Market exchange rates are not 
suitable as a basis for comparing output levels.  What is needed are 
purchasing power parities, which are the number of foreign currency units 
required to buy goods and services equivalent to what can be bought with one 
unit of U.S. currency.
Purchasing power parities are available for total gross domestic product 
(GDP) from the Organisation for Economic Cooperation and Development (OECD).  
However, these parities are derived for expenditures made by consumers, 
business, and government for goods and services-not for value added by 
industry.  Therefore, they do not provide purchasing power parities by 
industry.  The parities for total GDP are not suitable for each component 
industry, such as manufacturing.
Some analysts have constructed "proxy purchasing power parities" for 
manufacturing, using selected expenditure items from the GDP purchasing power 
parities.  However,  the prices used in this method have a number of 
shortcomings because they are based on consumer, business, and government 
final expenditures.  The data reflect sales to final users, rather than the 
output of specific industries, and thus prices include indirect taxes, 
distribution margins, and transportation costs.  Further, the purchasing power 
parities exclude items that, although they are outputs of the manufacturing 
sector (e.g., steel, paper, cement, etc.), are only intermediate inputs with 
respect to final sales.  They also do not reflect an industry's output because 
they include imports and exclude exports.
A different approach has been used by researchers at the International 
Comparisons of Output and Productivity project at the University of Groningen 
in the Netherlands.  They develop unit value ratios for matched products, 
based on censuses of manufactures data in the various countries.  Unit values 
are obtained by dividing producers' sales values by quantities shipped.  This 
procedure also has shortcomings, primarily because only a limited portion of 
manufactured products can be matched and the matched products may not be 
adequately representative of total manufacturing.  For many products, values 
are reported but not quantities; for some products, there is no counterpart in 
the other country; and other products cannot be matched because they represent 
a different mix of product varieties or because of large differences in 
qualities.2  



1  For more information on the U. S. measure, see Robert E. Yuskavage, "Improved Estimates of Gross Product by Industry, 1959-94," Survey of 
Current Business, August 1996, pp. 133-55.
2  For an article based on this approach, see Bart van Ark, "Manufacturing prices, productivity, and labor costs in five economies," Monthly Labor 
Review, July 1995, pp. 56-72.