TEXT
Table 1. Business sector: Productivity, hourly compensation, unit labor costs,
Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs,
Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits,
17
18


 
 
 
 
 
 
Historical, technical                         USDL 94-234
  information:(202) 606-5606                  TRANSMISSION OF THIS
Current data: (202) 606-7828                  MATERIAL IS EMBARGOED
Media contact:(202) 606-5902                  UNTIL 10:00 A.M. EDT
                                              THURSDAY, MAY 5, 1994
 
 
                              PRODUCTIVITY AND COSTS
                                First Quarter 1994
 
 
     The Bureau of Labor Statistics of the U.S. Department of Labor today reported
preliminary productivity data as measured by output per hour of all persons for the
first quarter of 1994.  The seasonally-adjusted annual rates of productivity change
in the first quarter were:
 
               0.5 percent in the business sector, and
               0.5 percent in the nonfarm business sector.
 
In both sectors, output gains were much smaller than in the fourth quarter of 1993.
 
     In manufacturing, productivity changes in the first quarter were:
 
               6.6 percent in manufacturing,
               7.9 percent in durable goods manufacturing, and
               4.3 percent in nondurable goods manufacturing.
 
     Productivity advances in manufacturing reflected strong output gains,
particularly in durable goods industries.  Output and hours in manufacturing, which
includes about 20 percent of U.S. business-sector employment, tend to change more
from quarter to quarter than in the business and nonfarm business sectors.  First-
quarter measures are summarized in table A and appear in detail in tables 1 through
5.
 
     Output measures for business and nonfarm business are based on measures of
gross domestic product prepared by the Bureau of Economic Analysis of the U.S.
Department of Commerce.  Quarterly output measures for manufacturing reflect
independent indexes of industrial production prepared by the Board of Governors of
the Federal Reserve System.  See Technical Notes (page 9) for further information
on data sources.
 
     In nonfinancial corporations, productivity rose 6.1 percent in the fourth
quarter of 1993, as output rose 8.9 percent and hours rose 2.6 percent.  For the
year as a whole, productivity in nonfinancial corporations rose 2.4 percent in 1993
(tables B and 6).
 
 
                                          2
 
 NOTE:  Productivity and cost measures for the first quarter of 1994 were affected
 by the  introduction of the redesigned Current Population Survey (CPS) in January
 1994.  This survey is used to obtain several components of labor inputjmainly the
 self employed,  unpaid family  workers, farm  employees, employees  of government
 enterprises, and  private household  workersjwhich comprise  in  total  about  17
 percent of  hours worked in the business sector.  See Adjustments to Hours Due to
 the CPS Redesign on page 7.
 
 
                                          3
 
 Table A.  Productivity and costs:  First-quarter 1994 measures
 (Seasonally adjusted annual rates)
 
                                                Real
                                         Hourly hourly Unit
                    Produc-                     compen-     compen-labor
     Sector         tivity Output Hours  sation sation costs
 
                      Percent change from preceding quarter
 
   Business          0.5     2.9   2.4    5.5    3.4    5.0
   Nonfarm business  0.5     2.6   2.0    5.6    3.4    5.0
   Manufacturing     6.6     8.0   1.4    4.7    2.5   -1.7
   Durable           7.9    10.9   2.8    5.4    3.2   -2.4
   Nondurable        4.3     3.8  -0.4    3.4    1.3   -0.8
 
                      Percent change from same quarter a year ago
 
   Business          2.7     4.8   2.1    3.7    1.1    1.0
   Nonfarm business  2.6     4.9   2.2    3.5    0.9    0.8
   Manufacturing     5.7     5.6  -0.1    4.0    1.5   -1.6
   Durable           7.9     8.2   0.2    4.2    1.6   -3.5
   Nondurable        2.5     2.0  -0.5    3.7    1.1    1.1
 
 
 
Business
 
     From the fourth quarter of 1993 to the first quarter of 1994, business sector
productivity increased at a 0.5 percent annual rate.  Output and hours advanced 2.9
percent and 2.4 percent, respectively.   During the fourth quarter of 1993, output
had increased 9.6 percent and hours of all persons engaged in the sector increased
2.3 percent (seasonally adjusted annual rates), and productivity went up 7.1
percent (revised).  See table 1.
 
     Hourly compensation increased 5.5 percent during the first quarter of 1994,
compared with a 2.8 percent rise in the fourth quarter of 1993.  The first-quarter
increase was the largest since 1992 (when a 6.2 percent gain occurred in the third
quarter).  This measure includes wages and salaries, supplements, employer
contributions to employee benefit plans, and taxes.  Unit labor costs, which
reflect changes in hourly compensation and productivity, increased at a 5.0 percent
annual rate during the first quarter.
 
     Real hourly compensation, which takes into account changes in the Consumer
Price Index for All Urban Consumers (CPI-U), rose at a 3.4 percent annual rate in
the first quarter; it had edged downward 0.1 percent in the fourth quarter of 1993.
The first-quarter increase was the largest since 1987 (when a 4.5 percent increase
was recorded in the fourth quarter).
 
     The implicit price deflator for the business sector, which reflects changes in
unit labor costs and unit nonlabor payments, increased 1.3 percent in the first
quarter, compared with a 1.1 percent increase during the fourth quarter of 1993.
 
 
                                          4
Nonfarm business
 
     Nonfarm productivity rose 0.5 percent in the first quarter, the same as in the
business sector as a whole.  Nonfarm output rose 2.6 percent, and hours of all
persons increased 2.0 percent.  During the fourth quarter of 1993, productivity had
risen 6.4 percent in this sector, reflecting gains of 8.9 percent in output and 2.4
percent in hours (table 2).
 
     Hourly compensation increased at a 5.6 percent annual rate in the first
quarter, compared with a 2.8 percent increase one quarter earlier.  When the rise
in the CPI-U was taken into account, real hourly compensation rose 3.4 percent, the
largest increase in this series since 1987 (when a 4.3 percent increase occurred in
the fourth quarter).  Unit labor costs rose 5.0 percent, compared with a 3.3
percent decline during the fourth quarter of 1993.
 
     The implicit price deflator for nonfarm business output rose 1.1 percent in
the first quarter, compared with a 0.6 percent rise one quarter earlier.
 
Manufacturing
 
     Productivity increased at a 6.6 percent seasonally adjusted annual rate in
manufacturing in the first quarter of 1994, as output rose 8.0 percent and hours of
all persons increased 1.4 percent (seasonally adjusted annual rates).  Productivity
and output gains in durable goods manufacturing were much greater than those in
nondurable goods industries (tables 4 and 5).  Automotive products had the largest
rate of increase in output of any durable goods industry (as reported by the
Federal Reserve Board).
 
     Hourly compensation of all manufacturing workers increased 4.7 percent during
the first quarter.  Real hourly compensation rose 2.5 percent when the increase in
consumer prices was taken into account.
 
     Unit labor costs fell at a 1.7 percent annual rate in the first quarter of
1994, the eighth decline in the past 11 quarters.  These costs had decreased 4.0
percent during the fourth quarter of 1993.
 
 
                                          5
 
 Table B.  Nonfinancial corporations:  Fourth-quarter and annual productivity and
 cost measures
 (Seasonally adjusted annual rates)
 
                                       Real
                                Hourly hourly Unit          Implicit
           Produc               compen-compen-   labor   Unit     price
 Period    tivity Output Hours  sation sation costs  profits  deflator
 
                                         Percent change from preceding quarter
 
 1993 IV  6.1    8.9    2.6    2.5    -0.5  -3.4    45.1    0.4
 
                            Percent change from same quarter of preceding year
 
 1993 IV  2.4    4.3    1.9    2.6    -0.2   0.2     8.9    1.0
 
                                            Annual percent change
 
 1992-93  2.4    4.0    1.6    3.3     0.3   0.9    10.7    1.3
 
 
 
Fourth-quarter and annual measures for nonfinancial corporations
 
     Fourth-quarter and annual 1993 measures of productivity and costs also were
announced today for the nonfinancial corporate sector (tables B, C, and 6).  Output
per all-employee hour rose 6.1 percent from the third to the fourth quarter of 1993
(the largest gain since an identical increase occurred in the fourth quarter of
1991).  Output rose 8.9 percent, and all-employee hours rose 2.6 percent
(seasonally adjusted annual rates).  The fourth-quarter increase in output was the
largest since the fourth quarter of 1983, when a 12.4 percent increase occurred.
 
      Hourly compensation increased 2.5 percent in the fourth quarter, and unit
labor costs fell 3.4 percent, the sixth decline in the last 7 quarters.  Unit
nonlabor costs decreased 3.7 percent, and unit profits rose at a 45.1 percent
annual rate.  The implicit price deflator for nonfinancial corporate output rose
only 0.4 percent during the fourth quarter.
 
 
                                          6
 
 Table C.  Nonfinancial corporations: Annual changes in productivity and
 related measures, 1984-1993
 
   Measure        1984 1985 1986 1987 1988 1989 1990 1991 1992 1993
 
  Productivity...  1.5  1.0  2.6  1.7  1.9 -1.6  1.1  1.8  4.1  2.4
  Output.........  8.1  3.5  3.2  4.4  5.4  1.3  1.1 -1.4  4.1  4.0
  Hours..........  6.5  2.5  0.5  2.7  3.4  2.9 -0.1 -3.1  0.1  1.6
  Hourly comp....  4.0  4.1  4.7  3.2  4.1  3.4  5.3  4.9  4.6  3.3
  Real hurly comp.-0.3  0.5  2.8 -0.5  0.0 -1.3 -0.1  0.6  1.5  0.3
 
  Unit labor costs 2.5  3.1  2.0  1.4  2.2  5.1  4.1  3.0  0.5  0.9
  Unit nonlabr cst-0.5  1.2  2.4  0.1  3.8  6.1  3.0  4.8 -1.4 -0.9
  Total unit cost  1.6  2.5  2.1  1.0. 2.6  5.4  3.8  3.5  0.0  0.4
  Unit profit.... 24.0 -0.2-10.8 14.7  6.6 -8.2 -0.6 -7.5 14.2 10.7
  Imp price def..  3.5  2.3  0.8  2.2  3.0  4.1  3.4  2.6  1.0  1.3
 
 
 
 Table D. Previous and revised productivity and related measures
 Quarterly percent changes at seasonally adjusted annual rates
 
                                           Real
                                    Hourly hourly  Unit
                Produc-             compen- compen- labor
       Sector   tivity Output Hours sation sation  costs
 
             .   Fourth quarter 1993
 Business:
   Previous...  6.9    9.3     2.2   2.9  -0.1    -3.8
   Current....  7.1    9.6     2.3   2.8  -0.1    -4.0
 
 Nonfarm business:
   Previous...  6.1    8.6     2.3   2.8  -0.1    -3.1
   Current....  6.4    8.9     2.4   2.8  -0.2    -3.3
 
 Manufacturing:
   Previous...  7.2    8.6     1.3   3.1   0.1    -3.8
   Current....  7.4    8.7     1.3   3.1   0.1    -4.0
 
 
 
Revised measures
 
     Current and previous measures for the fourth quarter of 1993 for the business,
nonfarm business, and manufacturing sectors are compared in table D.  The quarterly
movements differ slightly from the revised figures reported on March 8, based on
information then available.
 
 
                                          7
Adjustments to Hours Due to the CPS Redesign
 
 
     The Current Establishment Survey (CES) is the main source of data for the
measure of hours used in calculating productivity.  This monthly survey of
nonagricultural establishments provides information for about 83 percent of the
employment and hours expended to produce business sector output.
 
     The monthly Current Population Survey (CPS) is used to provide information on
the employment and average weekly hours of the self employed, farm employees,
private household workers, and unpaid family workers.  Average weekly hours
collected in the CPS also are used in estimating total hours worked in government
enterprises.  (The CPS is conducted each month from a sample of about 60,000
households nationwide.)
 
     In January 1994, a major redesign of the CPS was implemented and new
population controls were introduced.  The redesign of the CPS, which improved the
accuracy of the monthly labor force and employment information, is explained in
several articles in the February 1994 issue of the Employment and Earnings.  Due to
the changes in the survey, the pre-1994 employment and hours series used in
measuring productivity are not entirely comparable with the data beginning with
January 1994.
 
     The effects of the redesign on each series were assessed by comparing 1993
data from the old CPS with data collected through a special parallel survey for the
same time period.  The parallel data were collected from a sample of about 12,000
households using the new CPS questionnaire.
 
     Because productivity measures require the calculation of changes in inputs and
outputs, BLS needed to develop a method of bridging the break in the series for
employment and hours.
 
     For some series, it was possible to calculate a rate of change by linking the
data from the parallel survey to the current data.  In other cases, this approach
proved unsatisfactory.  Adjustments developed from the parallel survey for nonfarm
proprietors' employment and hours did not bring the percentage changes in these
series to within their normal ranges of quarterly variation.  (Nonfarm proprietors'
hours account for about 12 percent of business hours.)  For these series, BLS
estimated quarterly changes by applying quarterly growth rates of employment and
average weekly hours in private nonagricultural establishments (as measured by the
CES).  Further research on the effects of the CPS redesign on trends in business
and nonfarm business hours will be undertaken.
 
                                 Next release date
 
     The next release of Productivity and Costs is scheduled for 10:00 AM EDT,
Wednesday, June 15, 1994.  First-quarter measures for nonfinancial corporations and
revised measures for business, nonfarm business, and manufacturing will be released
at that time.
 
 
                                          8
 
 
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                                          9
 
                                  TECHNICAL NOTES
 
 
Labor Input: The primary source of hours  textile mill  products apparel products,
and employment  data is  the BLS Current  paper and  allied products, printing and
Employment  Statistics   (CES)  program,  publishing,   chemicals   and   chemical
which provides  monthly survey  data  on  products, petroleum refining and related
total  employment   and  average  weekly  industries, rubber and plastic products,
hours of  production and  nonsupervisory  leather    and     leather     products.
workers   in    nonagricultural   estab-  Manufacturing  accounted  for  about  19
lishments. Jobs  rather than persons are  percent  of  GDP  in  1992.    Quarterly
counted. Weekly  hours are  adjusted  to  manufacturing output  measures are based
the hours  at work  definition using the  on the  index of  industrial  production
BLS Hours  at Work survey, conducted for  prepared  monthly   by  the   Board   of
this purpose.                             Governors of  the Federal Reserve System
     Data   from    the   BLS    Current  adjusted by  BLS to annual manufacturing
Population Survey  (CPS)  are  used  for  output     levels     (gross     product
farm labor;  in the  nonfarm sector, the  originating) from  the  National  Income
National  Income  and  Product  Accounts  and Product  Accounts  prepared  by  the
(NIPA) prepared  by the  Bureau of  Eco-  Bureau of  Economic Analysis of the U.S.
nomic Analysis of the Department of Com-  Department of Commerce.
merce and  the CPS  are used  to measure       Nonfinancial  corporate  output  is
labor input  for government enterprises,  equal to  GDP in  constant 1987 dollars,
proprietors and unpaid family workers.    less    the    output    of    nonprofit
                                          institutions, output  of paid  employees
Output:  Business  output  is  equal  to  of private  households, rental  value of
gross domestic product (GDP) in constant  owner-occupied dwellings, unincorporated
1987 dollars,  less general  government,  business,  the  output  of  corporations
output of nonprofit institutions, output  engaged in  banking, finance,  stock and
of paid employees of private households,  commodity  trading,   and   credit   and
rental    value     of    owner-occupied  insurance agencies,  and the statistical
dwellings,    and     the    statistical  discrepancy  in   computing  the   NIPA.
discrepancy in  computing the NIPA. Cor-  Nonfinancial corporations  accounted for
responding exclusions  are also  made in  about 56 percent of GDP in 1992.
labor inputs.  Business output was about
78  percent  of  GDP  in  1992.  Nonfarm  Productivity:  These  productivity  mea-
business, which  also excludes  farming,  sures describe  the relationship between
was about 77 percent of GDP in 1992.      real output  and the labor time involved
     Total  manufacturing  measures  are  in its production. They show the changes
computed by  summing series prepared for  from period  to period  in the amount of
the   durable   and   nondurable   goods  goods and  services produced  per  hour.
sectors. Durables  include the following  Although these measures relate output to
2-digit SIC  industries:  Primary  metal  hours at  work of all persons engaged in
industries; fabricated  metal  products;  a  sector,   they  do  not  measure  the
nonelectrical machinery;  industrial and  specific contribution of labor, capital,
commercial   machinery    and   computer  or  any   other  factor  of  production.
equipment;    electronic    and    other  Rather, they  reflect the  joint effects
electrical   equipment;   transportation  of many influences, including changes in
equipment;   instruments;   lumber   and  technology; capital investment; level of
lumber products; furniture and fixtures;  output; utilization of capacity, energy,
stone,  clay,  and  glass  and  concrete  and  materials;   the  organization   of
products;   and    miscellaneous    man-  production; managerial  skill;  and  the
ufactures. Nondurables include: Food and  characteristics and  effort of  the work
kindred  products,   tobacco   products,  force.
 
 
                                          10
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individuals upon  request. Voice  phone:
 
 
 
  Table 1. Business sector: Productivity, hourly compensation, unit labor costs,
      and prices, seasonally adjusted
                                                                 Real
         Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
         and        hour of                of all    tion per    tion per    labor    labor pay-  price
         quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
      ---------------------------------------------------------------------------------------------------------
                                               Indexes 1982=100
 
      1993       I     116.6      138.0     118.3     159.1       107.3     136.4       152.1       141.6
                II     116.6      139.3     119.5     160.1       107.1     137.3       153.1       142.5
               III     117.6      140.4     119.4     161.6       107.6     137.4       153.9       142.8
                IV     119.6     r143.7     120.1     162.7       107.6    r136.0      r157.9       143.2
 
            ANNUAL     117.6     r140.4     119.4     160.8       107.4     136.8      r154.3       142.5
 
      1994       I     119.8      144.7     120.8     164.9       108.5     137.7       156.0       143.7
      ---------------------------------------------------------------------------------------------------------
                           Percent change from previous quarter at annual rate(5)
 
      1993       I      -1.6        0.5       2.1       3.3         0.2       5.0        -1.4         2.7
                II       0.0        3.8       3.8       2.5        -0.6       2.5         2.6         2.6
               III       3.3        3.2      -0.1       3.9         2.0       0.5         2.1         1.1
                IV      r7.1       r9.6      r2.3      r2.8        -0.1     r-4.0       r11.0        r1.1
 
            ANNUAL       1.8        3.6       1.8       3.8         0.8       2.0         3.1         2.4
 
      1994       I       0.5        2.9       2.4       5.5         3.4       5.0        -4.9         1.3
      ---------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year
 
      1993       I       2.2        3.5       1.3       4.5         1.3       2.3         2.4         2.3
                II       1.6        3.6       2.0       4.1         1.0       2.5         2.1         2.4
               III       1.3        3.2       1.9       3.6         0.7       2.2         4.5         3.0
                IV      r2.2       r4.2       2.0       3.1         0.4      r0.9        r3.5        r1.9
 
            ANNUAL       1.8        3.6       1.8       3.8         0.8       2.0         3.1         2.4
 
      1994       I       2.7        4.8       2.1       3.7         1.1       1.0         2.6         1.5
      ---------------------------------------------------------------------------------------------------------
      See footnotes following table 6.                                      May 5, 1994
      r=revised                                                             Source: Bureau of Labor Statistics
 
 
 
  Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs,
      and prices, seasonally adjusted
                                                                 Real
         Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
         and        hour of                of all    tion per    tion per    labor    labor pay-  price
         quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator(4)
      ---------------------------------------------------------------------------------------------------------
                                               Indexes 1982=100
 
      1993       I     114.8      138.1     120.3     157.7       106.3     137.4       153.8       142.7
                II     114.7      139.5     121.6     158.4       106.0     138.2       154.8       143.5
               III     115.8      140.9     121.7     159.8       106.4     138.0       156.3       143.9
                IV    r117.6     r143.9    r122.4    r160.9       106.4     136.9      r159.4       144.1
 
            ANNUAL     115.7      140.6     121.5     159.2       106.3     137.6      r156.1       143.6
 
      1994       I     117.8      144.8     123.0     163.1       107.3     138.5       157.0       144.5
      ---------------------------------------------------------------------------------------------------------
                           Percent change from previous quarter at annual rate(5)
 
      1993       I      -1.8        0.6       2.5       2.9        -0.2       4.8        -1.6         2.5
                II      -0.4        4.0       4.4       1.9        -1.2       2.3         2.8         2.4
               III       4.0        4.1       0.1       3.7         1.8      -0.4         3.8         1.1
                IV      r6.4       r8.9      r2.4       2.8       r-0.2     r-3.3        r8.3        r0.6
 
            ANNUAL       1.7       r3.9       2.1       3.6         0.6       1.8         3.3         2.3
 
      1994       I       0.5        2.6       2.0       5.6         3.4       5.0        -5.8         1.1
      ---------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year
 
      1993       I       2.1        3.6       1.4       4.5         1.3       2.3         2.6         2.4
                II       1.3        3.8       2.4       3.8         0.7       2.4         2.2         2.3
               III       1.5        3.7       2.2       3.3         0.4       1.8         5.1         2.9
                IV      r2.0       r4.4       2.3       2.8         0.1      r0.8        r3.3        r1.7
 
            ANNUAL       1.7       r3.9       2.1       3.6         0.6       1.8         3.3         2.3
 
      1994       I       2.6        4.9       2.2       3.5         0.9       0.8         2.1         1.3
      ---------------------------------------------------------------------------------------------------------
      See footnotes following table 6.                                      May 5, 1994
      r=revised                                                             Source: Bureau of Labor Statistics
 
 
  Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
      seasonally adjusted
                                                                                  Real
           Year           Output per                  Hours       Compensa-       compensa-      Unit
           and            hour of                     of all      tion per        tion per       labor
           quarter        all persons     Output      persons     hour(1)         hour(2)        costs
      --------------------------------------------------------------------------------------------------
                                                 Indexes 1982=100
 
      1993       I            133.8        136.0        101.6        149.9           101.1        112.1
                II            135.7        137.1        101.0        151.7           101.5        111.8
               III            136.8        137.9        100.9        153.0           101.9        111.9
                IV            139.2       r140.9        101.2        154.1           101.9       r110.7
 
            ANNUAL            136.4        138.0        101.1        152.3           101.7        111.6
 
      1994       I            141.4        143.6        101.5        155.9           102.5        110.2
      --------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)
 
      1993       I              4.5          6.1          1.5         -2.3            -5.2         -6.5
                II              6.0          3.5         -2.4          4.9             1.7         -1.0
               III              3.0          2.4         -0.6          3.4             1.5          0.3
                IV             r7.4         r8.7          1.3          3.1             0.1        r-4.0
 
            ANNUAL              5.1         r4.8         -0.3          2.8            -0.2         -2.2
 
      1994       I              6.6          8.0          1.4          4.7             2.5         -1.7
      --------------------------------------------------------------------------------------------------
                         Percent change from corresponding quarter of previous year
 
      1993       I              5.2          4.9         -0.2          3.1            -0.1         -2.0
                II              5.2          4.3         -0.9          3.1             0.0         -2.0
               III              5.1          4.6         -0.4          2.9             0.1         -2.1
                IV              5.2         r5.2         -0.1          2.2            -0.5         -2.8
 
            ANNUAL              5.1         r4.8         -0.3          2.8            -0.2         -2.2
 
      1994       I              5.7          5.6         -0.1          4.0             1.5         -1.6
      --------------------------------------------------------------------------------------------------
      See footnotes following table 6.                                May 5, 1994
      r=revised                                                       Source: Bureau of Labor Statistics
 
 
  Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
      seasonally adjusted
                                                                                  Real
           Year           Output per                  Hours       Compensa-       compensa-      Unit
           and            hour of                     of all      tion per        tion per       labor
           quarter        all persons     Output      persons     hour(1)         hour(2)        costs
      --------------------------------------------------------------------------------------------------
                                                 Indexes 1982=100
 
      1993       I            147.3        145.2         98.6        147.8            99.6        100.4
                II            150.2        146.7         97.7        149.5           100.0         99.5
               III            151.5        148.0         97.7        150.6           100.3         99.4
                IV           r155.9        153.1        r98.2        152.0           100.5        r97.5
 
            ANNUAL            151.3        148.3         98.0        150.1           100.2         99.2
 
      1994       I            158.9        157.1         98.8        154.0           101.3         96.9
      --------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)
 
      1993       I              7.4          9.0          1.5         -3.8            -6.6        -10.4
                II              8.1          4.4         -3.5          4.6             1.4         -3.3
               III              3.5          3.5         -0.1          3.0             1.1         -0.5
                IV             12.3         14.4         r1.9          3.8             0.8        r-7.5
 
            ANNUAL              7.5          6.7         -0.7          2.8            -0.2         -4.4
 
      1994       I              7.9         10.9          2.8          5.4             3.2         -2.4
      --------------------------------------------------------------------------------------------------
                         Percent change from corresponding quarter of previous year
 
      1993       I              7.6          6.7         -0.9          3.3             0.2         -4.0
                II              7.4          6.0         -1.4          3.1             0.0         -4.0
               III              7.3          6.6         -0.6          2.8             0.0         -4.2
                IV              7.8          7.7         -0.1          1.8            -0.9         -5.5
 
            ANNUAL              7.5          6.7         -0.7          2.8            -0.2         -4.4
 
      1994       I              7.9          8.2          0.2          4.2             1.6         -3.5
      --------------------------------------------------------------------------------------------------
      See footnotes following table 6.                                May 5, 1994
      r=revised                                                       Source: Bureau of Labor Statistics
 
 
  Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
      seasonally adjusted
                                                                                  Real
           Year           Output per                  Hours       Compensa-       compensa-      Unit
           and            hour of                     of all      tion per        tion per       labor
           quarter        all persons     Output      persons     hour(1)         hour(2)        costs
      --------------------------------------------------------------------------------------------------
                                                 Indexes 1982=100
 
      1993       I            117.6        124.6        106.0        154.5           104.2        131.4
                II            118.5        125.3        105.7        156.6           104.8        132.1
               III            119.2        125.6        105.4        158.1           105.3        132.6
                IV           r119.3       r125.9        105.5       r158.8           105.0       r133.1
 
            ANNUAL            118.7       r125.4        105.6       r157.0           104.9       r132.3
 
      1994       I            120.6        127.1        105.4        160.2           105.4        132.8
      --------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)
 
      1993       I              0.5          2.1          1.6          0.0            -2.9         -0.5
                II              3.1          2.2         -0.8          5.6             2.4          2.4
               III              2.3          0.9         -1.4          3.8             1.9          1.5
                IV             r0.5         r1.0          0.5         r1.9           r-1.0         r1.4
 
            ANNUAL              1.8          2.0          0.2         r2.8            -0.1          1.0
 
      1994       I              4.3          3.8         -0.4          3.4             1.3         -0.8
      --------------------------------------------------------------------------------------------------
                         Percent change from corresponding quarter of previous year
 
      1993       I              1.9          2.6          0.7          2.9            -0.3          1.0
                II              2.1          1.9         -0.2          3.1             0.0          1.0
               III              2.1          1.9         -0.1          3.0             0.2          0.9
                IV             r1.6          1.5          0.0          2.8             0.1         r1.2
 
            ANNUAL              1.8          2.0          0.2         r2.8            -0.1          1.0
 
      1994       I              2.5          2.0         -0.5          3.7             1.1          1.1
      --------------------------------------------------------------------------------------------------
      See footnotes following table 6.                                May 5, 1994
      r=revised                                                       Source: Bureau of Labor Statistics
 
 
  Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits,
      and prices, seasonally adjusted
 
                    Output                      Hourly    Real                Unit     Total    Unit   Implicit
          Year      per all-                    compen-   hourly     Unit     non-     unit     pro-   price
          and       employee          Employee  sation    compen-    labor    labor    cost     fits   deflator
          quarter   hour      Output  hours      (1)      sation(2)  costs    cost(6)  (7)      (8)      (4)
      ----------------------------------------------------------------------------------------------------------
                                                 Indexes 1982=100
 
      1992       I    117.3     137.9    117.6    147.9     102.9     126.1    121.1    124.7    164.1    127.1
                II    118.6     140.0    118.0    149.5     103.2     126.0    120.0    124.3    175.5    127.5
               III    120.3     141.9    117.9    151.6     103.8     126.0    121.3    124.7    172.4    127.6
                IV    121.7     144.3    118.6    153.0     104.0     125.8    118.3    123.7    195.3    128.1
 
            ANNUAL    119.4     141.0    118.1    150.4     103.4     126.0    120.2    124.3    177.0    127.6
 
      1993       I    120.4     143.3    119.0    153.9     103.7     127.8    119.6    125.4    182.8    129.0
                II    121.6     145.7    119.9    154.8     103.6     127.3    119.2    125.0    193.9    129.3
               III    122.7     147.3    120.1    156.0     103.9     127.2    119.4    125.0    193.7    129.2
                IV    124.5     150.5    120.9    157.0     103.8     126.1    118.3    123.9    212.6    129.3
 
            ANNUAL    122.2     146.7    120.0    155.3     103.7     127.1    119.1    124.8    195.9    129.2
      ----------------------------------------------------------------------------------------------------------
                                   Percent change from previous quarter at annual rate(5)
 
      1992       I      2.5       2.1     -0.3      3.9       1.3       1.5     -2.2      0.4     18.9      1.8
                II      4.8       6.4      1.6      4.5       1.2      -0.2     -3.6     -1.2     30.6      1.1
               III      5.8       5.4     -0.4      5.6       2.5      -0.2      4.6      1.1     -6.8      0.4
                IV      4.5       6.9      2.2      4.0       0.7      -0.5     -9.7     -3.1     64.6      1.5
 
            ANNUAL      4.1       4.1      0.1      4.6       1.5       0.5     -1.4      0.0     14.2      1.0
 
      1993       I     -4.0      -2.7      1.3      2.2      -0.8       6.4      4.3      5.9    -23.1      2.8
                II      3.9       7.0      3.0      2.4      -0.7      -1.5     -1.3     -1.4     26.4      0.8
               III      3.7       4.5      0.7      3.3       1.4      -0.4      0.7     -0.1     -0.3     -0.1
                IV      6.1       8.9      2.6      2.5      -0.5      -3.4     -3.7     -3.5     45.1      0.4
 
            ANNUAL      2.4       4.0      1.6      3.3       0.3       0.9     -0.9      0.4     10.7      1.3
      ----------------------------------------------------------------------------------------------------------
                                Percent change from corresponding quarter of previous year
 
      1992       I      3.2       2.4     -0.8      4.5       1.6       1.3     -0.4      0.8      5.8      1.2
                II      4.0       4.1      0.1      4.5       1.4       0.6     -1.4      0.0     11.8      0.9
               III      4.8       4.8      0.1      4.8       1.7       0.1     -1.0     -0.2     14.6      0.9
                IV      4.4       5.2      0.8      4.5       1.4       0.1     -2.8     -0.7     24.2      1.2
 
            ANNUAL      4.1       4.1      0.1      4.6       1.5       0.5     -1.4      0.0     14.2      1.0
 
      1993       I      2.7       3.9      1.2      4.1       0.9       1.3     -1.3      0.6     11.4      1.5
                II      2.5       4.1      1.5      3.5       0.4       1.0     -0.7      0.6     10.5      1.4
               III      2.0       3.8      1.8      3.0       0.1       1.0     -1.6      0.2     12.4      1.3
                IV      2.4       4.3      1.9      2.6      -0.2       0.2      0.0      0.2      8.9      1.0
 
            ANNUAL      2.4       4.0      1.6      3.3       0.3       0.9     -0.9      0.4     10.7      1.3
      ----------------------------------------------------------------------------------------------------------
      See footnotes following table 6.                                        May 5, 1994
      r=revised                                                               Source: Bureau of Labor Statistics
 
                                          17
 
 
 
         SOURCE:  Output data from the Bureau of Economic Analysis, U.S.
         Department of Commerce, and the Federal Reserve Board.
         Compensation and hours data from the Bureau of Labor Statistics,
         U.S. Department of Labor, and the Bureau of Economic Analysis.
 
         RELIABILITY:  Productivity and cost measures are regularly
         revised as more complete information becomes available.  The
         measures are first published 30 days after the close of the
         reference period; revisions appear 30 days later, and third
         revisions after an additional 60 days.  In the business sector,
         the probability is 0.95 that the third publication (third
         revision) of a quarterly index of output per hour of all persons
         will differ from the initial value by between -1.8 and +2.1 index
         points.  This interval is based on the performance of this
         measure between the second quarter of 1976 and the third quarter
         of 1992.
 
 
                               Footnotes, Tables 1-6
 
         (1)  Wages and salaries of employees plus employers'
              contributions for social insurance and private benefit
              plans.  Except for nonfinancial corporations, where there
              are no self-employed, data also include an estimate of
              wages, salaries, and supplemental payments for the self-
              employed.
 
         (2)  Compensation per hour adjusted for changes in the Consumer
              Price Index for All Urban Consumers.
 
         (3)  Unit nonlabor payments include profits, capital consumption
              allowances, interest, rental income of persons, and indirect
              taxes.
 
         (4)  Current dollar gross product divided by constant dollar
              gross product.
 
         (5)  Quarterly changes:  Percent change compounded at annual rate
              from the original data rather than index numbers.  Annual
              changes:  Percent change between annual average levels.
 
         (6)  Quarterly manufacturing output measures are based on the
              index of industrial production prepared monthly by the Board
              of Governors of the Federal Reserve adjusted by BLS to
              annual manufacturing output levels (gross product
              originating) from the National Income and Product Accounts
              prepared by the Bureau of Economic Analysis of the U.S.
              Department of Commerce.
 
         (7)  Unit nonlabor cost includes capital consumption allowances,
              interest, rental income of persons, and indirect taxes.  For
              nonfinancial corporations, rental income of persons is zero
              by definition.
 
 
                                          18
 
 
 
         (8)  Total unit cost is the sum of labor and nonlabor costs.
 
         (9)  Unit profits include corporate profits with inventory
              valuation and capital consumption adjustments.