USDL 01-163
TRANSMISSION OF THIS
MATERIAL IS EMBARGOED
UNTIL 8:30 A.M. EDT,
TUESDAY, JUNE 5, 2001.

Internet address:      http://www.bls.gov/lprhome.htm
Historical, technical  
  information:         (202) 691-5606
Current data:          (202) 691-5200
Media contact:         (202) 691-5902
                                      
                                      
                           PRODUCTIVITY AND COSTS
                             First Quarter 2001


     The Bureau of Labor Statistics of the U.S. Department of Labor today
reported revised productivity data--as measured by output per hour of all
persons--for the first quarter of 2001.  The revised seasonally adjusted
annual rates of productivity change in the first quarter were:

              -1.4 percent in the business sector, and
              -1.2 percent in the nonfarm business sector.

In both sectors, the first-quarter productivity gains were lower than those
reported initially on May 8.  (These data do not reflect the employment
benchmark of the BLS Current Employment Statistics data released on June 1.)

     In manufacturing, the revised productivity changes in the first quarter
were:
              -2.1 percent in manufacturing,
              -2.4 percent in durable goods manufacturing, and
              -2.0 percent in nondurable goods manufacturing.

     The declines in manufacturing productivity reflected decreases in output
that were larger than the corresponding decreases in hours worked.  The
productivity decline in manufacturing was the first recorded since the third
quarter of 1993, when it fell 0.6 percent.  Output and hours in 
manufacturing, which includes about 16 percent of U.S. business-sector
employment, tend to vary more from quarter to quarter than data for the more
aggregate business and nonfarm business sectors.  First-quarter measures are
summarized in table A and appear in detail in tables 1 through 5.

     The data sources and methods used in the preparation of the
manufacturing series differ from those used in preparing the business and
nonfarm business series, and these measures are not directly comparable.
Output measures for business and nonfarm business are based on measures of
gross domestic product prepared by the Bureau of Economic Analysis of the
U.S. Department of Commerce.  Quarterly output measures for manufacturing
reflect indexes of industrial production independently prepared by the Board
of Governors of the Federal Reserve System.  See Technical Notes for further
information on data sources.


-------------------------------------------------------------------------
Table A. Productivity and costs: Revised first-quarter 2001 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            -1.4       1.0      2.4       5.2      1.0       6.7
Nonfarm business    -1.2       1.0      2.2       5.1      0.9       6.3
Manufacturing       -2.1      -7.8     -5.8       4.7      0.5       7.0
  Durable           -2.4      -9.3     -7.1       4.0     -0.2       6.5
  Nondurable        -2.0      -5.8     -3.8       6.4      2.1       8.6
-------------------------------------------------------------------------
                      Percent change from same quarter a year ago
Business             2.7       2.6     -0.1       6.3      2.9       3.5
Nonfarm business     2.5       2.6      0.1       6.0      2.5       3.4
Manufacturing        4.0       0.4     -3.4       6.1      2.6       2.0
  Durable            6.3       2.7     -3.4       5.8      2.4      -0.5
  Nondurable         1.1      -2.3     -3.4       6.5      3.0       5.3
-------------------------------------------------------------------------


Business

     From the fourth quarter of 2000 to the first quarter of 2001, business
productivity decreased 1.4 percent, reflecting increases of 1.0 percent in
output and 2.4 percent in hours of all persons (seasonally adjusted annual
rates).  This was the largest decline in output per hour since the first
quarter of 1993, when it fell 4.7 percent.  During the fourth quarter of
2000, productivity had increased 2.9 percent, when output rose 0.7 percent
and hours fell 2.1 percent (table 1).

     Hourly compensation increased 5.2 percent during the first quarter of
2001.  This measure of compensation includes wages and salaries, supplements,
employer contributions to employee benefit plans, and taxes.  Real hourly
compensation, which takes into account changes in consumer prices, increased
1.0 percent in the first quarter.
     
     Unit labor costs, which reflect changes in both hourly compensation and
productivity, increased 6.7 percent during the first quarter.  The implicit
price deflator for business output, which reflects changes in both unit labor
costs and unit nonlabor payments, increased 2.8 percent in the first quarter.

Nonfarm business

     Productivity fell 1.2 percent in the nonfarm business sector during the
first quarter of 2001, reflecting a 1.0-percent rise in output and a 2.2-
percent increase in hours of all persons.  In the fourth quarter of 2000,
nonfarm business productivity grew 2.0 percent, as output rose 0.8 percent
and hours decreased 1.3 percent (table 2).

     The first-quarter 2001 increase in hourly compensation, 5.1 percent, was
smaller than the 6.6-percent increase reported for the fourth quarter of
2000.  When the rise in consumer prices is taken into account, there was a
0.9-percent gain in real hourly compensation in the first quarter of 2001.
     
     The 6.3-percent increase in unit labor costs during the first quarter
was the largest posted since the fourth quarter of 1990, when unit labor
costs rose 6.8 percent.  The implicit price deflator for nonfarm business
output rose 2.6 percent in the first quarter of 2001.

Manufacturing

     Productivity fell 2.1 percent in manufacturing in the first quarter of
2001, as output dropped 7.8 percent and hours of all persons declined 5.8
percent (seasonally adjusted annual rates).  This was the largest decline in
labor productivity in the manufacturing sector since the third quarter of
1989, when it fell 3.2 percent.  In durable goods industries, productivity
fell 2.4 percent in the first quarter of 2001.  This reflected a large
decrease in output, 9.3 percent, and a decline of 7.1 percent in hours of all
persons.  In nondurable goods industries, productivity fell 2.0 percent as
output and hours dropped 5.8 and 3.8 percent, respectively (tables 3, 4,
and 5).

     Hourly compensation in manufacturing rose 4.7 percent during the first
quarter.  This increase reflects a rise of 4.0 percent in the hourly
compensation of persons in durable goods industries and a larger increase,
6.4 percent, in the hourly compensation of workers in nondurable goods
industries.  Real hourly compensation, which takes account of changes in
consumer prices, rose 0.5 percent for all manufacturing workers.

     The combination of a 2.1-percent drop in manufacturing productivity and
a 4.7-percent increase in hourly compensation in the first quarter caused
unit labor costs in manufacturing to rise 7.0 percent.  The last time unit
labor costs rose this much in one quarter was in the first quarter of 1991,
when they rose 7.2 percent.  Unit labor costs rose in both parts of
manufacturing in the first quarter of 2001.  In durable goods industries,
they rose 6.5 percent, and, in nondurable goods industries, they rose even
more, 8.6 percent.

Nonfinancial corporations

     Preliminary first-quarter 2001 measures of productivity and costs for
nonfinancial corporations also were announced today (tables B and 6).
Productivity dropped slightly, 0.1 percent, in the first quarter, as output
increased 0.4 percent and employee-hours grew 0.5 percent (seasonally
adjusted annual rates).  The last time productivity fell in the nonfinancial
corporate sector was the first quarter of 1997, when it dropped 3.1 percent.
Nonfinancial corporations include all corporations doing business in the
United States, except banks, stock and commodity brokers, and finance and
insurance agencies.


----------------------------------------------------------------------------
Table B.  Nonfinancial corporations: Preliminary first-quarter 2001
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
2001 I    -0.1     0.4     0.5     5.9      1.7      6.0    -16.2     1.9
----------------------------------------------------------------------------
                 Percent change from same quarter a year ago
2001 I    2.5      2.6     0.1     6.4      2.9      3.8    -14.8     1.5
----------------------------------------------------------------------------
     
     
     Hourly compensation increased 5.9 percent during the first quarter of
2001, down from a 7.4-percent rise in the previous quarter.  When the rise
in consumer prices is taken into account, real hourly compensation rose 1.7
percent in the first quarter.  Unit labor costs in nonfinancial corporations
rose 6.0 percent in the first quarter, less than the 7.1-percent rise one
quarter earlier.

     Unit profits fell 16.2 percent in first-quarter 2001 and 38.5 percent
in the fourth quarter of 2000.  They have fallen in 9 of the last 14
quarters.  The implicit price deflator for nonfinancial corporate output
rose 1.9 percent in the first quarter of 2001.

REVISED MEASURES

     Current and previous measures for the first quarter of 2001 for
business, nonfarm business, and manufacturing are compared in table C.  In
the business, nonfarm business, and manufacturing sectors, output and
productivity were revised down from the data reported on May 8, based on
information then available.  As a result, unit labor costs were revised
upward.


-----------------------------------------------------------------------
Table C. Previous and revised productivity and related measures
(Quarterly percent change at seasonally adjusted annual rate)
-----------------------------------------------------------------------                                                          
                                                        Real      
                                               Hourly   hourly    Unit
                   Produc-                     compen-  compen-   labor
Sector             tivity   Output    Hours    sation   sation    costs
-----------------------------------------------------------------------                                                          
                             First quarter 2001
Business:                                                 
  Previous          -0.4     1.8       2.2      5.2      1.0       5.6
  Current           -1.4     1.0       2.4      5.2      1.0       6.7
Nonfarm business:                                                 
  Previous          -0.1     1.9       2.0      5.2      1.0       5.2
  Current           -1.2     1.0       2.2      5.1      0.9       6.3
Manufacturing:                                                    
  Previous           0.3    -5.7      -6.0      4.7      0.6       4.4
  Current           -2.1    -7.8      -5.8      4.7      0.5       7.0
-----------------------------------------------------------------------
                                      
                                      
                              NEXT RELEASE DATE
                                      
     The next release of Productivity and Costs is scheduled for 8:30 AM EDT,
Tuesday, Aug. 7, 2001.  Preliminary second-quarter measures for business,
nonfarm business, and manufacturing will be released at that time.  This
release will incorporate the annual benchmark revision to the employment
levels in the BLS establishment survey data.  All employment and hours series
will incorporate new information on seasonal patterns.  The release also will
incorporate the annual three-year revision of the National Income and Product
Accounts by the Bureau of Economic Analysis, U.S. Department of Commerce.



                                      
                               TECHNICAL NOTES

Labor Hours: Hours data for the labor productivity and cost measures include
hours for all persons working in the sector-wage and salary workers, the self-
employed, and unpaid family workers.  The primary source of hours and
employment data is the BLS Current Employment Statistics (CES) program, which
provides monthly survey data on the number of jobs held by wage and salary
workers in nonfarm establishments.  The CES also provides average weekly paid
hours of production and nonsupervisory workers in these establishments.
Average weekly paid hours of nonproduction and supervisory workers are
estimated by the Office of Productivity and Technology.  Weekly paid hours
are adjusted to hours at work using the BLS Hours at Work survey, conducted
for this purpose.
     Data from the BLS Current Population Survey (CPS) are used for farm
labor; in the nonfarm sector, the National Income and Product Accounts (NIPA)
prepared by the Bureau of Economic Analysis (BEA) of the Department of Com
merce and the CPS are used to measure labor input for government enterprises,
proprietors, and unpaid family workers.

Output: Business sector output is an annual-weighted index constructed after
excluding from gross domestic product (GDP) the following outputs: General
government, nonprofit institutions, paid employees of private households, and
the rental value of owner-occupied dwellings. Corresponding exclusions also
are made in labor inputs. Business output accounted for about 77 percent of
the value of GDP in 1996. Nonfarm business, which also excludes farming,
accounted for about 76 percent of GDP in 1996.
     Annual indexes for manufacturing and its durable and nondurable goods
components are constructed by deflating current-dollar industry value of
production data from the U.S. Bureau of the Census with deflators from the
BEA.  These deflators are based on data from the BLS producer price program
and other sources.  The industry shipments are aggregated using annual
weights, and intrasector transactions are removed.  Quarterly manufacturing
output measures are based on the index of industrial production prepared
monthly by the Board of Governors of the Federal Reserve System adjusted to
be consistent with annual indexes of manufacturing sector output prepared by
BLS.  Durables include the following 2-digit SIC industries: Primary metal
industries; fabricated metal products; nonelectrical machinery; industrial
and commercial machinery and computer equipment; electronic and other
electrical equipment; transportation equipment; instruments; lumber and
lumber products; furniture and fixtures; stone, clay, and glass and concrete
products; and miscellaneous manufactures. Nondurables include: Food and
kindred products, tobacco products, textile mill products, apparel products,
paper and allied products, printing and publishing, chemicals and chemical
products, petroleum refining and related industries, rubber and plastic
products, and leather and leather products.
     Nonfinancial corporate output is an annual-weighted index constructed by
excluding from GDP the following outputs: General government; nonprofit
institutions; employees of private households; the rental value of owner-oc
cupied dwellings; unincorporated business; and those corporations which are
depository institutions, nondepository institutions, security and commodity
brokers, insurance carriers, regulated investment offices, small business
investment offices, and real estate investment trusts. Nonfinancial
corporations accounted for about 53 percent of the value of GDP in 1996.

Productivity: These productivity measures describe the relationship between
real output and the labor time involved in its production. They show the
changes from period to period in the amount of goods and services produced
per hour. Although these measures relate output to hours at work of all
persons engaged in a sector, they do not measure the specific contribution of
labor, capital, or any other factor of production. Rather, they reflect the
joint effects of many influences, including changes in technology; capital
investment; level of output; utilization of capacity, energy, and materials;
the organization of production; managerial skill; and the characteristics and
effort of the work force.

     Information in this release will be made available to sensory-impaired
individuals upon request. Voice phone: 202-691-5200; Federal Relay Service
number: 1-800-877-8339.


  Table 1. Business sector: Productivity, hourly compensation, unit labor costs,
  and prices, seasonally adjusted
                                                             Real
     Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
     and        hour of                of all    tion per    tion per    labor    labor pay-  price
     quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
  ---------------------------------------------------------------------------------------------------------
                                           Indexes 1992=100

  1999       I     112.5      132.3     117.5     123.0       106.4      109.3       115.1      111.4
            II     112.7      133.1     118.1     124.3       106.9      110.4       114.2      111.8
           III     114.0      135.3     118.7     125.9       107.4      110.5       114.4      111.9
            IV     116.1      138.5     119.3     127.1       107.5      109.5       116.9      112.2

        ANNUAL     113.8      134.8     118.4     125.1       107.1      109.9       115.1      111.8

  2000       I     116.6      140.3     120.3     128.2       107.4      110.0       118.2      113.0
            II     118.6      142.4     120.1     130.4       108.5      110.0       120.0      113.7
           III     119.3      143.3     120.1     132.2       109.1      110.8       119.5      114.0
            IV     120.1      143.5     119.5     134.6       110.3      112.1       118.7      114.5

        ANNUAL     118.6      142.4     120.0     131.4       108.9      110.7       119.1      113.8

  2001       I    r119.7     r143.9    r120.2    r136.3       110.5     r113.9      r117.7      115.3
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1999       I       2.7        3.8       1.1       4.5         2.9        1.8         2.0        1.9
            II       0.5        2.6       2.1       4.5         1.6        4.0        -3.4        1.2
           III       4.7        6.6       1.9       5.1         2.0        0.4         0.8        0.5
            IV       7.6        9.9       2.1       3.8         0.5       -3.6         9.0        1.0

        ANNUAL       2.8        4.8       2.0       4.6         2.4        1.8         0.0        1.1

  2000       I       1.7        5.3       3.5       3.7        -0.3        1.9         4.8        3.0
            II       7.0        6.3      -0.7       7.1         4.0        0.0         6.1        2.4
           III       2.4        2.3      -0.1       5.7         2.0        3.1        -1.7        1.2
            IV       2.9        0.7      -2.1       7.5         4.4        4.5        -2.6        1.7

        ANNUAL       4.2        5.6       1.3       5.0         1.6        0.8         3.4        1.8

  2001       I     r-1.4       r1.0      r2.4       5.2         1.0       r6.7       r-3.2       r2.8
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1999       I       2.3        4.3       2.0       4.7         3.1        2.4        -1.0        1.1
            II       2.1        4.2       2.0       4.6         2.6        2.4        -0.8        1.2
           III       2.8        4.9       2.1       4.6         2.3        1.8        -0.1        1.0
            IV       3.8        5.7       1.8       4.5         1.8        0.6         2.0        1.1

        ANNUAL       2.8        4.8       2.0       4.6         2.4        1.8         0.0        1.1

  2000       I       3.6        6.1       2.4       4.3         1.0        0.6         2.7        1.4
            II       5.2        7.0       1.7       4.9         1.5       -0.3         5.1        1.7
           III       4.7        5.9       1.2       5.0         1.6        0.3         4.5        1.9
            IV       3.5        3.6       0.1       6.0         2.5        2.4         1.6        2.1

        ANNUAL       4.2        5.6       1.3       5.0         1.6        0.8         3.4        1.8

  2001       I      r2.7       r2.6     r-0.1      r6.3         2.9       r3.5       r-0.4        2.0
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       June 5, 2001
  r=revised                                                              Source: Bureau of Labor Statistics




  Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs,
  and prices, seasonally adjusted
                                                             Real
     Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
     and        hour of                of all    tion per    tion per    labor    labor pay-  price
     quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
  ---------------------------------------------------------------------------------------------------------
                                           Indexes 1992=100

  1999       I     111.9      132.6     118.4     122.1       105.6      109.0       116.7      111.8
            II     112.0      133.4     119.1     123.4       106.1      110.2       115.8      112.2
           III     113.4      135.6     119.6     125.0       106.6      110.2       116.1      112.4
            IV     115.6      138.9     120.2     126.3       106.9      109.3       118.6      112.7

        ANNUAL     113.2      135.1     119.3     124.2       106.4      109.7       116.8      112.3

  2000       I     116.2      140.7     121.1     127.6       106.9      109.8       120.1      113.6
            II     118.0      142.9     121.1     129.4       107.7      109.7       121.8      114.1
           III     118.8      143.7     120.9     131.4       108.4      110.6       121.4      114.5
            IV     119.4      144.0     120.6     133.5       109.3      111.8       120.6      115.0

        ANNUAL     118.1      142.8     120.9     130.5       108.1      110.5       121.0      114.3

  2001       I    r119.1     r144.3    r121.2     135.2       109.6     r113.5      r119.6      115.7
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1999       I       2.0        3.6       1.6       3.8         2.2        1.8         3.0        2.2
            II       0.2        2.4       2.2       4.5         1.6        4.3        -3.0        1.5
           III       5.0        7.0       1.9       5.2         2.2        0.2         1.3        0.6
            IV       8.0       10.0       1.8       4.2         0.9       -3.5         8.9        1.0

        ANNUAL       2.6        4.8       2.2       4.4         2.3        1.8         0.5        1.3

  2000       I       2.1        5.2       3.0       4.1         0.1        1.9         5.1        3.2
            II       6.3        6.5       0.2       6.0         3.0       -0.2         5.7        2.0
           III       3.0        2.3      -0.7       6.2         2.6        3.2        -1.2        1.4
            IV       2.0        0.8      -1.3       6.6         3.6        4.5        -2.8        1.6

        ANNUAL       4.3        5.7       1.3       5.1         1.6        0.7         3.6        1.8

  2001       I     r-1.2       r1.0      r2.2      r5.1        r0.9       r6.3       r-3.2       r2.6
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1999       I       2.1        4.3       2.1       4.5         2.9        2.4        -0.6        1.2
            II       1.7        4.1       2.3       4.3         2.3        2.5        -0.4        1.4
           III       2.6        4.9       2.3       4.4         2.0        1.7         0.3        1.2
            IV       3.8        5.7       1.9       4.4         1.7        0.6         2.5        1.3

        ANNUAL       2.6        4.8       2.2       4.4         2.3        1.8         0.5        1.3

  2000       I       3.8        6.1       2.2       4.5         1.2        0.7         3.0        1.6
            II       5.3        7.2       1.7       4.9         1.5       -0.4         5.2        1.7
           III       4.8        6.0       1.1       5.1         1.6        0.3         4.6        1.9
            IV       3.3        3.6       0.3       5.7         2.3        2.3         1.6        2.1

        ANNUAL       4.3        5.7       1.3       5.1         1.6        0.7         3.6        1.8

  2001       I      r2.5       r2.6       0.1       6.0         2.5       r3.4       r-0.4        1.9
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       June 5, 2001
  r=revised                                                              Source: Bureau of Labor Statistics


  Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1999       I            127.5        132.8        104.2        119.9          103.7          94.0
            II            128.4        134.1        104.5        121.2          104.2          94.4
           III            129.8        135.8        104.7        122.8          104.7          94.6
            IV            132.7        138.0        104.0        124.1          105.0          93.5

        ANNUAL            129.6        135.2        104.3        122.0          104.5          94.1

  2000       I            135.4        140.3        103.7        125.7          105.3          92.8
            II            137.5        143.1        104.1        127.0          105.7          92.4
           III            139.7        144.4        103.4        129.1          106.5          92.4
            IV            141.6        143.9        101.6        131.8          107.9          93.1

        ANNUAL            138.5        142.9        103.2        128.4          106.4          92.7

  2001       I           r140.8       r141.0        100.1        133.3         r108.0         r94.7
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1999       I              5.1          2.5         -2.5          2.8            1.2          -2.2
            II              3.0          4.1          1.1          4.6            1.7           1.5
           III              4.4          5.1          0.7          5.3            2.2           0.9
            IV              9.3          6.4         -2.7          4.5            1.2          -4.4

        ANNUAL              4.5          3.7         -0.8          4.0            1.9          -0.5

  2000       I              8.3          7.1         -1.1          5.0            1.0          -3.0
            II              6.3          8.0          1.6          4.3            1.3          -1.9
           III              6.7          3.7         -2.8          6.9            3.3           0.2
            IV              5.5         -1.5         -6.6          8.4            5.3           2.8

        ANNUAL              6.9          5.7         -1.1          5.2            1.8          -1.6

  2001       I            r-2.1        r-7.8        r-5.8          4.7           r0.5          r7.0
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1999       I              4.6          2.9         -1.6          3.9            2.3          -0.7
            II              4.3          3.3         -0.9          3.8            1.8          -0.5
           III              3.7          3.8          0.1          4.0            1.7           0.3
            IV              5.4          4.5         -0.8          4.3            1.6          -1.1

        ANNUAL              4.5          3.7         -0.8          4.0            1.9          -0.5

  2000       I              6.2          5.7         -0.5          4.8            1.5          -1.3
            II              7.1          6.7         -0.4          4.8            1.4          -2.1
           III              7.6          6.3         -1.2          5.2            1.7          -2.3
            IV              6.7          4.3         -2.3          6.2            2.7          -0.5

        ANNUAL              6.9          5.7         -1.1          5.2            1.8          -1.6

  2001       I             r4.0         r0.4        r-3.4          6.1            2.6          r2.0
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                June 5, 2001
  r=revised                                                       Source: Bureau of Labor Statistics



  Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1999       I            140.4        153.8        109.6        117.5          101.7          83.7
            II            142.3        156.2        109.8        119.2          102.4          83.8
           III            144.1        159.5        110.7        120.9          103.1          83.9
            IV            147.6        162.2        109.9        122.5          103.7          83.0

        ANNUAL            143.6        157.9        110.0        120.0          102.8          83.6

  2000       I            152.5        167.2        109.7        123.8          103.8          81.2
            II            156.2        172.6        110.5        124.9          104.0          80.0
           III            160.5        176.0        109.7        126.9          104.7          79.1
            IV            163.1        175.9        107.8        129.8          106.3          79.6

        ANNUAL            158.0        172.9        109.4        126.3          104.7          79.9

  2001       I           r162.1       r171.6       r105.9       r131.0          106.2         r80.8
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1999       I              7.6          3.0         -4.3          4.1            2.5          -3.2
            II              5.5          6.2          0.7          6.0            3.0           0.5
           III              5.2          8.7          3.4          5.7            2.7           0.5
            IV              9.9          7.1         -2.6          5.6            2.3          -3.9

        ANNUAL              6.9          6.1         -0.8          4.8            2.7          -2.0

  2000       I             13.9         12.7         -1.1          4.2            0.2          -8.6
            II             10.2         13.7          3.2          3.7            0.8          -5.9
           III             11.5          8.1         -3.0          6.3            2.7          -4.6
            IV              6.6         -0.4         -6.6          9.4            6.3           2.6

        ANNUAL             10.0          9.5         -0.5          5.2            1.8          -4.4

  2001       I            r-2.4        r-9.3        r-7.1          4.0          r-0.2          r6.5
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1999       I              7.4          5.7         -1.6          4.2            2.6          -3.0
            II              7.4          6.1         -1.2          4.7            2.7          -2.5
           III              5.9          6.4          0.4          5.1            2.7          -0.8
            IV              7.0          6.2         -0.7          5.4            2.6          -1.6

        ANNUAL              6.9          6.1         -0.8          4.8            2.7          -2.0

  2000       I              8.6          8.7          0.1          5.4            2.0          -2.9
            II              9.8         10.5          0.7          4.8            1.5          -4.5
           III             11.4         10.4         -0.9          5.0            1.5          -5.7
            IV             10.5          8.4         -1.9          5.9            2.5          -4.2

        ANNUAL             10.0          9.5         -0.5          5.2            1.8          -4.4

  2001       I             r6.3         r2.7        r-3.4         r5.8            2.4         r-0.5
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                June 5, 2001
  r=revised                                                       Source: Bureau of Labor Statistics


  Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1999       I            116.6        113.1         97.0        122.5          106.0         105.1
            II            116.5        113.5         97.4        123.2          105.9         105.8
           III            117.7        113.7         96.7        124.4          106.2         105.8
            IV            120.1        115.3         96.0        125.2          106.0         104.3

        ANNUAL            117.7        113.9         96.8        123.8          106.1         105.2

  2000       I            120.6        115.4         95.7        127.2          106.6         105.5
            II            121.2        115.8         95.5        128.8          107.1         106.2
           III            121.5        115.3         94.9        131.3          108.3         108.1
            IV            122.6        114.4         93.3        133.4          109.2         108.8

        ANNUAL            121.4        115.2         94.9        130.1          107.8         107.1

  2001       I           r122.0       r112.7         92.4       r135.5          109.8        r111.1
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1999       I              1.5          1.8          0.3          0.9           -0.6          -0.6
            II             -0.2          1.5          1.8          2.3           -0.5           2.5
           III              4.0          0.7         -3.2          4.0            1.0           0.0
            IV              8.6          5.6         -2.8          2.5           -0.7          -5.6

        ANNUAL              1.5          0.7         -0.8          2.6            0.5           1.0

  2000       I              1.6          0.5         -1.1          6.5            2.4           4.8
            II              2.0          1.2         -0.8          5.0            2.0           3.0
           III              0.9         -1.5         -2.4          8.0            4.3           7.0
            IV              3.8         -3.1         -6.7          6.7            3.6           2.7

        ANNUAL              3.2          1.2         -2.0          5.1            1.7           1.8

  2001       I            r-2.0        r-5.8        r-3.8         r6.4            2.1          r8.6
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1999       I              1.2         -0.3         -1.5          3.3            1.8           2.1
            II              0.5          0.0         -0.6          2.4            0.4           1.8
           III              1.0          0.7         -0.3          2.2           -0.1           1.2
            IV              3.4          2.4         -1.0          2.4           -0.2          -1.0

        ANNUAL              1.5          0.7         -0.8          2.6            0.5           1.0

  2000       I              3.4          2.0         -1.3          3.8            0.5           0.4
            II              4.0          2.0         -2.0          4.5            1.2           0.4
           III              3.2          1.4         -1.8          5.5            2.0           2.2
            IV              2.1         -0.8         -2.8          6.5            3.1           4.4

        ANNUAL              3.2          1.2         -2.0          5.1            1.7           1.8

  2001       I             r1.1        r-2.3        r-3.4          6.5            3.0          r5.3
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                June 5, 2001
  r=revised                                                       Source: Bureau of Labor Statistics




  Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits,
  and prices, seasonally adjusted
 
                Output                      Hourly    Real                Unit     Total    Unit   Implicit
      Year      per all-                    compen-   hourly     Unit     non-     unit     pro-   price
      and       employee          Employee  sation    compen-    labor    labor    costs    fits   deflator
      quarter   hour      Output  hours      (1)      sation(2)  costs    costs(6) (7)      (8)      (4)
  ----------------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1999       I    114.6    139.6     121.9    119.0     103.0     103.9    101.3    103.2    150.6    107.2
            II    115.3    141.4     122.6    120.3     103.4     104.3    102.2    103.7    148.6    107.5
           III    116.6    143.8     123.3    121.8     103.9     104.5    102.9    104.0    144.4    107.5
            IV    118.3    146.9     124.2    123.0     104.1     104.0    103.4    103.9    147.0    107.5

        ANNUAL    116.2    142.9     123.0    121.1     103.7     104.2    102.5    103.7    147.6    107.4

  2000       I    119.2    149.1     125.1    123.9     103.9     104.0    104.2    104.0    152.2    108.1
            II    120.8    151.4     125.3    125.8     104.7     104.2    104.9    104.3    156.3    108.8
           III    122.1    153.0     125.3    127.7     105.3     104.5    105.5    104.8    153.0    108.9
            IV    122.2    152.8     125.0    130.0     106.4     106.3    107.9    106.8    135.5    109.2

        ANNUAL    121.1    151.6     125.2    126.8     105.1     104.8    105.6    105.0    149.2    108.8

  2001       I    122.2    152.9     125.2    131.8     106.9     107.9    107.8    107.9    129.7    109.7
  ----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

  1999       I      3.0      5.4       2.3      4.3       2.7       1.2     -3.2      0.0     15.6      1.7
            II      2.7      5.1       2.4      4.4       1.5       1.6      3.4      2.1     -5.3      1.2
           III      4.4      6.9       2.4      5.0       2.0       0.6      2.9      1.2    -10.8     -0.3
            IV      5.8      8.8       2.8      4.1       0.8      -1.7      2.1     -0.7      7.3      0.2

        ANNUAL      3.5      5.9       2.3      4.5       2.3       1.0      1.3      1.0     -0.9      0.8

  2000       I      3.1      6.2       3.0      2.9      -1.0      -0.2      3.0      0.7     14.9      2.3
            II      5.6      6.4       0.7      6.3       3.3       0.7      2.6      1.2     11.4      2.4
           III      4.4      4.4       0.0      6.0       2.4       1.5      2.6      1.8     -8.3      0.5
            IV      0.3     -0.7      -1.0      7.4       4.3       7.1      9.4      7.7    -38.5      1.2

        ANNUAL      4.2      6.1       1.8      4.8       1.4       0.6      3.1      1.2      1.1      1.2

  2001       I     -0.1      0.4       0.5      5.9       1.7       6.0     -0.4      4.3    -16.2      1.9
  ----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

  1999       I      3.6      5.7       2.0      4.7       3.1       1.0      0.6      0.9     -0.1      0.8
            II      3.2      5.7       2.4      4.4       2.4       1.1      0.9      1.1      0.6      1.0
           III      3.1      5.7       2.5      4.4       2.0       1.2      2.2      1.5     -5.0      0.7
            IV      4.0      6.5       2.5      4.4       1.7       0.4      1.3      0.7      1.2      0.7

        ANNUAL      3.5      5.9       2.3      4.5       2.3       1.0      1.3      1.0     -0.9      0.8

  2000       I      4.0      6.8       2.6      4.1       0.8       0.1      2.8      0.8      1.0      0.8
            II      4.7      7.1       2.2      4.6       1.2      -0.2      2.6      0.6      5.2      1.1
           III      4.7      6.4       1.6      4.8       1.3       0.1      2.6      0.7      5.9      1.3
            IV      3.3      4.0       0.7      5.6       2.2       2.2      4.4      2.8     -7.8      1.6

        ANNUAL      4.2      6.1       1.8      4.8       1.4       0.6      3.1      1.2      1.1      1.2

  2001       I      2.5      2.6       0.1      6.4       2.9       3.8      3.5      3.7    -14.8      1.5
  ----------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                        June 5, 2001
  r=revised                                                               Source: Bureau of Labor Statistics
SOURCES:  Output data are from the Bureau of Economic Analysis and the Census 
Bureau of the U.S. Department of Commerce; the Bureau of Labor Statistics, 
U.S. Department of Labor; and the Federal Reserve Board.  Compensation and 
hours data are from the Bureau of Labor Statistics and the Bureau of Economic 
Analysis.

RELIABILITY:  Productivity and cost measures are regularly revised as more 
complete information becomes available.  The measures are first published 
within 40 days of the close of the reference period; revisions appear 30 days 
later, and second revisions after an additional 60 days.  In the business 
sector, the third publication (second revision) of a quarterly index of 
output per hour of all persons has differed from the initial value by between 
-1.6 and +2.2 index points approximately 95 percent of the time.  This 
interval is based on the performance of this measure between the fourth 
quarter of 1995 and the fourth quarter of 2000.  



Footnotes, Tables 1-6

(1)  Wages and salaries of employees plus employers' contributions for social 
insurance and private benefit plans.  Except for nonfinancial 
corporations, where there are no self-employed, data also include an 
estimate of wages, salaries, and supplemental payments for the self-
employed.

(2)  The change for recent quarters is based on the Consumer Price Index for 
all urban consumers (CPI-U).  The trend from 1978-2000 is based on the 
Consumer Price Index research series (CPI-U-RS).

(3)  Unit nonlabor payments include profits, capital consumption allowances, 
interest, rental income of persons, and indirect taxes.

(4)  Current dollar output divided by the output index.

(5)  Quarterly changes:  Percent change compounded at annual rate from the 
original data rather than index numbers.  Annual changes:  Percent 
change between annual average levels.

(6)  Unit nonlabor costs include capital consumption allowances, interest, 
rental income of persons, and indirect taxes.  For nonfinancial 
corporations, rental income of persons is zero by definition.

(7)  Total unit costs are the sum of unit labor and nonlabor costs.

(8)  Unit profits include corporate profits with inventory valuation and 
capital consumption adjustments.