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                           PRODUCTIVITY AND COSTS
                   Fourth Quarter and Annual Averages, 1999

     The Bureau of Labor Statistics of the U.S. Department of Labor
today reported revised fourth-quarter seasonally-adjusted annual rates
of productivity change--as measured by output per hour of all persons--
and revised annual changes for the full year 1999.  Percent changes in
business and nonfarm business productivity were:

                                    Fourth   Annual averages
                                    quarter    1998-1999

     Business sector                    6.1       3.1
     Nonfarm business sector            6.4       3.0

     In both sectors, the fourth-quarter productivity increases were the
largest since the fourth quarter of 1992.  Fourth-quarter productivity and
related measures are summarized in table A and appear in detail in tables 1
through 5; the preliminary and revised fourth-quarter and annual data appear
in table C.

     In the manufacturing sector, increases in productivity
were:
                                    Fourth   Annual averages
                                    quarter    1998-1999

     Manufacturing                     10.3       6.4
       Durable goods manufacturing     10.8       9.6
       Nondurable goods manufacturing  10.0       2.4

     Manufacturing productivity rose at a 10.3 percent annual rate in
the fourth quarter.  This was the largest increase since the second
quarter of 1982, when output per hour of all persons rose 12.3 percent.
On an annual basis, manufacturing productivity rose 6.4 percent in 1999,
marking 20 consecutive years of labor productivity increases in this sector.
(Output and hours in manufacturing, which includes about 17 percent of U.S.
business sector employment, tend to vary more from quarter to quarter than
data for the more aggregate business and nonfarm business sectors.)

-----------------------------------------------------------------------
Table A. Productivity and costs: Revised fourth-quarter 1999 measures
 (Seasonally adjusted annual rates)
-----------------------------------------------------------------------
                                                        Real
                                              Hourly    hourly    Unit
                   Produc-                    compen-   compen-   labor
Sector             tivity    Output   Hours   sation    sation    costs
-----------------------------------------------------------------------
                      Percent change from preceding quarter

 Business           6.1       8.2       1.9     3.3       0.4      -2.7
 Nonfarm business   6.4       8.0       1.6     3.7       0.8      -2.5
 Manufacturing     10.3       6.6      -3.3     4.2       1.3      -5.5
   Durable         10.8       6.6      -3.7     4.9       1.9      -5.3
   Nondurable      10.0       7.1      -2.7     3.2       0.3      -6.2
-----------------------------------------------------------------------
                      Percent change from same quarter a year ago

 Business           3.6       5.1       1.4     4.5       1.9       0.8
 Nonfarm business   3.6       5.1       1.4     4.3       1.7       0.7
 Manufacturing      6.9       4.7      -2.1     5.1       2.5      -1.6
   Durable          9.0       6.9      -1.9     5.4       2.8      -3.3
   Nondurable       4.2       1.9      -2.2     4.6       2.0       0.4
-----------------------------------------------------------------------

     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 data 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.


              THIRD-TO-FOURTH QUARTER CHANGES, 1999
                                
Business

     Business sector productivity rose at a 6.1-percent annual
rate in the fourth quarter of 1999, as output increased 8.2
percent and hours of all persons engaged in the sector increased
1.9 percent (table 1).  The fourth-quarter increases in both labor
productivity and output were the largest since the fourth quarter
of 1992, when productivity rose 7.0 percent and output increased
by 9.1 percent (seasonally adjusted annual rates).

     Hourly compensation grew at a 3.3-percent annual rate in the
fourth quarter of 1999, compared with a 4.5-percent rise 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 both hourly compensation
and productivity, decreased at a 2.7-percent annual rate during the
fourth quarter. This decrease was the largest since a 3.2-percent
decline in the fourth quarter of 1993.

     Real hourly compensation, which takes into account changes
in consumer prices, rose just 0.4 percent for persons in the
business sector. This was the smallest increase since the fourth
quarter of 1996, when real hourly compensation increased 0.2 percent.

     The implicit price deflator for business output, which
reflects changes in unit labor costs and unit nonlabor payments,
increased at an annual rate of 1.8 percent in the fourth quarter.
This measure rose 0.6 percent during the third quarter of 1999.

Nonfarm business

     In the nonfarm business sector, productivity rose at an annual
rate of 6.4 percent in the fourth quarter of 1999, as output grew 8.0
percent and hours of all persons--employees, proprietors, and unpaid
family workers--rose 1.6 percent (table 2).  During the third quarter,
productivity had increased 5.0 percent, as output grew 6.8 percent and
hours rose 1.7 percent(seasonally adjusted annual rates).

     Hourly compensation rose 3.7 percent in the fourth quarter,
less rapidly than it had in the previous nine quarters.  When the
increase in consumer prices was taken into account, real hourly
compensation in the fourth quarter of 1999 rose 0.8 percent.

     Unit labor costs fell 2.5 percent in the fourth quarter and had
declined 0.3 percent in the third quarter of 1999.  The implicit price
deflator for nonfarm business rose more in the fourth quarter, 2.0
percent, than it had one quarter earlier, when it increased 0.7 percent.

Manufacturing

     Manufacturing productivity rose at a 10.3-percent seasonally
adjusted annual rate in the fourth quarter of 1999, as output
increased 6.6 percent and hours of all persons dropped  3.3
percent (table 3).  Double-digit productivity growth rates occurred
in both of the manufacturing subsectors last quarter.  In durable goods,
productivity increased 10.8 percent in the fourth quarter, as output
grew 6.6 percent and hours of all persons fell 3.7 percent.  In nondurable
goods, productivity grew 10.0 percent, reflecting a 7.1-percent rise in
output and a 2.7-percent decline in hours (tables 4 and 5).

     Hourly compensation of all manufacturing workers rose 4.2 percent
during the fourth quarter.  The hourly compensation of workers in durable
goods industries rose 4.9 percent and that of workers in nondurable goods
industries increased 3.2 percent.  When the increase in consumer prices was
taken into account, real hourly compensation for all manufacturing workers
rose 1.3 percent in the fourth quarter.

     Since labor productivity gains outstripped the gains in hourly
compensation, unit labor costs in the manufacturing sector fell--they
dropped 5.5 percent in the fourth quarter of 1999.  Unit labor costs
fell 5.3 percent in durable goods industries and 6.2 percent in nondurable
goods industries.


                ANNUAL AVERAGE CHANGES, 1998-1999
                                
Business

   In calendar year 1999, business productivity increased 3.1 percent,
after having increased 2.8 percent in the previous year (table 1).
Output grew 4.7 percent in 1999 and 5.1 percent in 1998.  Hours of all
persons in the business sector rose less in 1999, 1.5 percent, than in
1998, 2.2 percent.

---------------------------------------------------------------------
Table B. Productivity and costs: Revised 1999 annual averages
(Seasonally adjusted annual rates)
---------------------------------------------------------------------
                                                        Real
                                              Hourly    hourly  Unit
                  Produc-                     compen-   compen- labor
Sector            tivity     Output   Hours   sation    sation  costs
---------------------------------------------------------------------
                   Percent change from previous year

Business             3.1       4.7     1.5      5.0      2.8      1.8
Nonfarm business     3.0       4.7     1.7      4.7      2.6      1.7
Manufacturing        6.4       4.2    -2.1      5.0      2.8     -1.4
  Durable            9.6       7.3    -2.1      5.0      2.9     -4.2
  Nondurable         2.4       0.3    -2.1      4.8      2.7      2.3
---------------------------------------------------------------------

     Hourly compensation increased 5.0 percent in 1999, after
having increased 5.3 percent in 1998.  Real hourly compensation
also increased in both years--2.8 percent in 1999 and 3.9 percent
in 1998.  1999 was the fourth consecutive year of growth in this
series, following three years of declining real hourly
compensation (1993-95).

     Unit labor costs increased 1.8 percent in 1999, less than the
2.4 percent increase in the previous year.  The implicit price deflator
rose 0.9 percent in 1999, compared with a 0.7-percent increase in 1998.

Nonfarm business

     Productivity increased 3.0 percent in the nonfarm business sector
during 1999, as output rose 4.7 percent and hours of all persons increased
1.7 percent.  In 1998, productivity rose 2.8 percent, output rose 5.2
percent, and hours of all persons grew 2.4 percent.

     Hourly compensation grew 4.7 percent in 1999, slightly less
than the 5.2-percent increase in 1998.  The increase in real hourly
compensation in 1999, 2.6 percent, also was smaller than during
the previous year, when it had increased 3.8 percent.

     Unit labor costs in the nonfarm business sector grew 1.7
percent in 1999, compared with the 2.4-percent increase posted in 1998.
The implicit price deflator, which reflects nonlabor payments as well
as labor costs, rose 0.9 percent in 1999, similar to the 0.8-percent
rise in 1998.

Manufacturing

     Manufacturing productivity grew 6.4 percent in 1999, continuing
a trend of annual increases that began in 1980.  Output in the
manufacturing sector increased 4.2 percent in 1999, and hours of all
persons fell 2.1 percent. Trends in the durable and nondurable sectors
differed.  In 1999, labor productivity increased 9.6 percent in durable
goods manufacturing, reflecting a 7.3-percent output increase and a
decline of 2.1 percent in hours.  In nondurable goods manufacturing,
productivity rose 2.4 percent in 1999, as output edged up 0.3 percent
and hours of all persons declined 2.1 percent (tables B, 3, 4, and 5).

     Hourly compensation of manufacturing workers increased 5.0 percent
in 1999, about the same as the 5.3-percent increase of 1998.  Hourly
compensation in durable goods rose 5.0 percent in 1999.  In nondurable
goods industries, hourly compensation rose 4.8 percent.  Real hourly
compensation of all manufacturing workers rose 2.8 percent in 1999.

     Unit labor costs in the manufacturing sector fell 1.4 percent in
1999. These costs have fallen in six of the last eight years.  Unit
labor costs in durable goods industries fell 4.2 percent and rose 2.3
percent in nondurable goods.  In durable goods, unit labor costs have
fallen every year since 1991 (when they rose 4.0 percent).

                        REVISED MEASURES

     Productivity and cost data for the fourth quarter and full
year 1999 for business, nonfarm business, and manufacturing were
revised to incorporate the most recent information (table C).
In the business and nonfarm business sectors, productivity and
output measures for the fourth quarter are higher and drops in
unit labor costs are deeper than those reported on Feb. 8 based
on information available at that time.  Fourth-quarter measures
of manufacturing productivity and output were revised down from
those reported last month; unit labor costs declined somewhat
less than originally reported. Annual measures of productivity
and costs are similar to those reported on Feb. 8.  Quarterly
series of real hourly compensation in the business, nonfarm
business, and manufacturing sectors for 1999 were revised to
incorporate the annual recalculation of seasonal factors for the
Consumer Price Index.

-------------------------------------------------------------------
Table C. Previous and revised productivity and related measures:
Fourth-quarter and annual averages, 1999
(Seasonally adjusted annual rates)
-------------------------------------------------------------------
                                                    Real
                                            Hourly  hourly    Unit
                   Produc-                  compen- compen-   labor
Sector             tivity   Output   Hours  sation  sation    costs
-------------------------------------------------------------------
            Percent change, third to fourth quarter 1999
Business:
  Previous          4.8      6.7      1.9     3.6     0.6      -1.2
  Current           6.1      8.2      1.9     3.3     0.4      -2.7
Nonfarm business:
  Previous          5.0      6.6      1.5     4.0     1.1      -1.0
  Current           6.4      8.0      1.6     3.7     0.8      -2.5
Manufacturing:
  Previous         10.7      7.3     -3.0     4.3     1.3      -5.8
  Current          10.3      6.6     -3.3     4.2     1.3      -5.5
-------------------------------------------------------------------
                     Percent change, 1998 - 1999
Business:
  Previous          3.0      4.6      1.5     5.0     2.9       1.9
  Current           3.1      4.7      1.5     5.0     2.8       1.8
Nonfarm business:
  Previous          2.9      4.7      1.7     4.8     2.6       1.8
  Current           3.0      4.7      1.7     4.7     2.6       1.7
Manufacturing:
  Previous          6.4      4.2     -2.1     5.0     2.8      -1.4
  Current           6.4      4.2     -2.1     5.0     2.8      -1.4
-------------------------------------------------------------------

                              Next release date

     The next release of Productivity and Costs is scheduled for
8:30 AM EDT, Thursday, May 4, 2000, and will present preliminary
first-quarter measures for business, nonfarm business, and
manufacturing.  Fourth-quarter and annual data for nonfinancial
corporations will be released at that time.
TECHNICAL NOTES

Labor Hours: Hours data for the labor productivity and costs measures include
hours for all persons working in the sector-wage and salary workers, the self-
employed, and unpaid family workers.  The primary source of hours and
employment data is the BLS Current Employment Statistics (CES) program, which
provides monthly survey data on the number of jobs held by wage and salary
workers in nonfarm establishments.  The CES also provides average weekly paid
hours of production and nonsupervisory workers in these establishments.
Average weekly paid hours of nonproduction and supervisory workers are
estimated by the Office of Productivity and Technology.  Weekly paid hours are
adjusted to hours at work using the BLS Hours at Work survey, conducted for
this purpose.
	Data from the BLS Current Population Survey (CPS) are used for farm
labor; in the nonfarm sector, the National Income and Product Accounts (NIPA)
prepared by the Bureau of Economic Analysis (BEA) of the Department of
Commerce and the CPS are used to measure labor input for government
enterprises, proprietors, and unpaid family workers.

Output: Business sector output is an annual-weighted index constructed after
excluding from gross domestic product (GDP) the following outputs: General
government, nonprofit institutions, paid employees of private households, and
the rental value of owner-occupied dwellings. Corresponding exclusions also
are made in labor inputs. Business output accounted for about 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-
occupied dwellings; unincorporated business; and those corporations which are
depository institutions, nondepository institutions, security and commodity
brokers, insurance carriers, regulated investment offices, small business
investment offices, and real estate investment trusts. Nonfinancial
corporations accounted for about 54 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: 202-606-STAT;
TDD phone: 202-606-5897; TDD message referral phone number: 1-800-326-2577.




Table 1. Business sector:   Productivity, hourly compensation, unit labor costs,
  and prices, seasonally adjusted
                                                             Real
     Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
     and        hour of                of all    tion per    tion per    labor    labor pay-  price
     quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
  ---------------------------------------------------------------------------------------------------------
                                           Indexes 1992=100

  1997       I     106.3      120.0     112.9     112.5       100.1      105.9       114.5      109.1
            II     107.1      121.8     113.7     113.2       100.4      105.7       115.9      109.5
           III     108.1      123.2     114.0     114.6       101.2      106.0       116.0      109.7
            IV     108.4      124.4     114.7     116.4       102.4      107.4       114.1      109.9

        ANNUAL     107.5      122.3     113.8     114.2       101.1      106.2       115.1      109.5

  1998       I     109.7      126.9     115.7     117.8       103.4      107.5       114.2      110.0
            II     109.8      127.5     116.1     119.4       104.4      108.8       112.6      110.2
           III     110.7      128.9     116.4     121.2       105.6      109.5       112.1      110.4
            IV     111.9      131.2     117.2     122.7       106.5      109.6       112.1      110.5

        ANNUAL     110.5      128.6     116.4     120.3       105.1      108.8       112.7      110.3

  1999       I     112.7      132.5     117.5     124.2      r107.3      110.2       112.1      110.9
            II     113.0      133.1     117.8     125.7       107.8      111.3       110.9      111.2
           III     114.3      135.2     118.3     127.1       108.3      111.3       111.5      111.4
            IV    r116.0     r137.9     118.9    r128.2       108.5     r110.5      r114.1     r111.8

        ANNUAL    r114.0     r134.7     118.1     126.3       108.1     r110.8      r112.2      111.3

  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1997       I       1.3        5.8       4.4       3.4         1.0        2.1         2.4        2.2
            II       3.4        6.2       2.7       2.6         1.5       -0.7         4.9        1.4
           III       3.6        4.8       1.1       4.8         3.0        1.1         0.2        0.8
            IV       1.2        3.9       2.7       6.7         4.8        5.4        -6.2        0.7

        ANNUAL       2.2        5.4       3.1       3.7         1.5        1.5         1.4        1.5

  1998       I       4.6        8.1       3.4       4.9         4.2        0.3         0.4        0.4
            II       0.6        2.2       1.6       5.5         3.9        4.9        -5.6        0.8
           III       3.4        4.4       0.9       6.1         4.7        2.6        -1.9        0.9
            IV       4.3        7.2       2.8       4.9         3.3        0.6        -0.1        0.4

        ANNUAL       2.8        5.1       2.2       5.3         3.9        2.4        -2.1        0.7

  1999       I       3.0        3.9       0.9       4.9        r3.3        1.9         0.2        1.3
            II       0.8        1.9       1.0       5.1        r1.8        4.2        -4.1        1.1
           III       4.7        6.5       1.7       4.5        r2.0       -0.2         2.1        0.6
            IV      r6.1       r8.2       1.9      r3.3        r0.4      r-2.7        r9.8        1.8

        ANNUAL      r3.1       r4.7       1.5       5.0        r2.8       r1.8       r-0.5        0.9

  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1997       I       2.1        5.5       3.4       3.6         0.8        1.5         1.7        1.6
            II       1.7        5.1       3.3       3.2         1.0        1.4         1.7        1.5
           III       2.6        5.7       3.0       3.5         1.4        0.9         2.1        1.4
            IV       2.4        5.2       2.7       4.4         2.6        1.9         0.2        1.3

        ANNUAL       2.2        5.4       3.1       3.7         1.5        1.5         1.4        1.5

  1998       I       3.2        5.8       2.5       4.7         3.4        1.5        -0.3        0.8
            II       2.5        4.7       2.2       5.5         4.0        2.9        -2.8        0.7
           III       2.4        4.6       2.1       5.8         4.4        3.3        -3.4        0.7
            IV       3.2        5.5       2.2       5.4         4.0        2.1        -1.8        0.6

        ANNUAL       2.8        5.1       2.2       5.3         3.9        2.4        -2.1        0.7

  1999       I       2.8        4.4       1.6       5.4         3.8        2.5        -1.9        0.8
            II       2.9        4.3       1.4       5.3         3.2        2.3        -1.5        0.9
           III       3.2        4.9       1.6       4.9         2.6        1.6        -0.5        0.8
            IV      r3.6       r5.1       1.4       4.5         1.9       r0.8        r1.9        1.2

        ANNUAL      r3.1       r4.7       1.5       5.0        r2.8       r1.8       r-0.5        0.9

  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       March 7, 2000
  r=revised                                                              Source: Bureau of Labor Statistics
Table 2. Nonfarm business sector:   Productivity, hourly compensation, unit labor costs,
  and prices, seasonally adjusted
                                                             Real
     Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
     and        hour of                of all    tion per    tion per    labor    labor pay-  price
     quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
  ---------------------------------------------------------------------------------------------------------
                                           Indexes 1992=100

  1997       I     106.1      120.2     113.3     112.2        99.8      105.7       115.0      109.1
            II     106.9      122.0     114.1     112.9       100.1      105.6       116.6      109.6
           III     107.8      123.4     114.5     114.1       100.8      105.8       117.0      109.9
            IV     108.1      124.6     115.3     115.9       101.9      107.2       115.3      110.1

        ANNUAL     107.2      122.5     114.3     113.8       100.7      106.1       115.9      109.7

  1998       I     109.3      127.1     116.3     117.2       102.9      107.3       115.8      110.4
            II     109.5      127.9     116.8     118.8       103.9      108.5       114.1      110.5
           III     110.4      129.3     117.1     120.6       105.1      109.3       113.1      110.7
            IV     111.5      131.6     118.0     122.0       105.9      109.4       112.7      110.6

        ANNUAL     110.2      129.0     117.1     119.7       104.5      108.6       113.9      110.5

  1999       I     112.2      132.9     118.4     123.3       106.6      109.8       113.1      111.0
            II     112.4      133.5     118.7     124.7       106.9      111.0       112.2      111.4
           III     113.8      135.7     119.3     126.1       107.5      110.9       112.9      111.6
            IV    r115.5     r138.3     119.7    r127.3      r107.7     r110.2      r115.6     r112.1

        ANNUAL    r113.5     r135.1     119.0     125.4      r107.2     r110.5      r113.4     r111.5

  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1997       I       0.9        5.5       4.5       3.6         1.2        2.7         2.2        2.5
            II       3.3        6.2       2.8       2.6         1.5       -0.6         5.7        1.7
           III       3.3        4.6       1.3       4.4         2.6        1.0         1.3        1.1
            IV       1.2        4.1       2.9       6.4         4.5        5.1        -5.7        0.8

        ANNUAL       2.0        5.3       3.3       3.6         1.4        1.6         1.9        1.7

  1998       I       4.4        8.3       3.7       4.8         4.1        0.4         1.8        0.9
            II       0.9        2.4       1.4       5.6         3.9        4.6        -5.8        0.5
           III       3.1        4.4       1.2       6.2         4.7        3.0        -3.2        0.6
            IV       4.1        7.3       3.1       4.6         2.9        0.5        -1.6       -0.3

        ANNUAL       2.8        5.2       2.4       5.2         3.8        2.4        -1.8        0.8

  1999       I       2.7        4.0       1.3       4.2        r2.6        1.4         1.5        1.5
            II       0.6        1.8       1.3       4.8        r1.4        4.2        -3.1        1.4
           III       5.0        6.8       1.7       4.7        r2.1       -0.3         2.5        0.7
            IV      r6.4       r8.0      r1.6      r3.7        r0.8      r-2.5        r9.9       r2.0

        ANNUAL      r3.0        4.7       1.7      r4.7         2.6       r1.7       r-0.4        0.9

  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1997       I       1.8        5.4       3.6       3.5         0.7        1.7         1.8        1.7
            II       1.5        5.1       3.5       3.1         1.0        1.6         2.2        1.8
           III       2.3        5.5       3.1       3.5         1.4        1.1         2.9        1.8
            IV       2.2        5.1       2.9       4.2         2.4        2.0         0.8        1.5

        ANNUAL       2.0        5.3       3.3       3.6         1.4        1.6         1.9        1.7

  1998       I       3.0        5.8       2.7       4.5         3.2        1.5         0.7        1.2
            II       2.4        4.8       2.3       5.3         3.8        2.8        -2.2        0.9
           III       2.4        4.8       2.3       5.7         4.3        3.3        -3.3        0.7
            IV       3.1        5.6       2.4       5.3         3.9        2.1        -2.3        0.5

        ANNUAL       2.8        5.2       2.4       5.2         3.8        2.4        -1.8        0.8

  1999       I       2.7        4.5       1.7       5.1         3.6        2.4        -2.3        0.6
            II       2.6        4.4       1.7       4.9         2.9        2.3        -1.6        0.8
           III       3.1        5.0       1.8       4.6        r2.3        1.4        -0.2        0.8
            IV      r3.6       r5.1       1.4      r4.3        r1.7       r0.7        r2.6        1.4

        ANNUAL      r3.0        4.7       1.7      r4.7         2.6       r1.7       r-0.4        0.9

  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       March 7, 2000
  r=revised                                                              Source: Bureau of Labor Statistics
Table 3. Manufacturing sector:   Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1997       I            116.9        122.7        105.0        111.8           99.5          95.7
            II            118.4        124.9        105.5        112.6           99.9          95.1
           III            120.9        127.3        105.3        113.6          100.3          94.0
            IV            122.0        129.6        106.2        115.5          101.5          94.6

        ANNUAL            119.6        126.1        105.5        113.4          100.4          94.8

  1998       I            122.7        130.6        106.4        117.0          102.7          95.3
            II            123.9        131.5        106.1        118.6          103.7          95.7
           III            126.3        132.6        105.0        120.6          105.1          95.5
            IV            128.2        134.4        104.9        121.4          105.4          94.7

        ANNUAL            125.3        132.3        105.6        119.4          104.3          95.3

  1999       I            130.4        135.2        103.7        122.8         r106.1          94.1
            II            132.2        136.8        103.5        124.5          106.8          94.2
           III            133.6        138.4        103.6        126.3         r107.7          94.5
            IV           r136.9       r140.6       r102.7       r127.6          108.0         r93.2

        ANNUAL            133.3        137.8        103.4        125.3          107.2          94.0

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1997       I              4.0          7.1          3.0          5.5            3.0           1.4
            II              5.5          7.4          1.8          2.9            1.8          -2.4
           III              8.4          7.8         -0.6          3.6            1.8          -4.5
            IV              3.9          7.4          3.3          6.8            4.9           2.7

        ANNUAL              5.0          6.9          1.8          3.7            1.5          -1.3

  1998       I              2.4          3.3          0.9          5.4            4.7           3.0
            II              3.9          2.6         -1.2          5.4            3.8           1.5
           III              7.8          3.4         -4.1          6.9            5.4          -0.9
            IV              6.1          5.6         -0.5          2.9            1.2          -3.1

        ANNUAL              4.8          4.9          0.1          5.3            3.9           0.5

  1999       I              7.3          2.5         -4.5          4.5           r2.8          -2.7
            II              5.5          4.9         -0.5          5.8           r2.5           0.3
           III              4.4          4.6          0.2          6.0           r3.4           1.5
            IV            r10.3         r6.6        r-3.3         r4.2            1.3         r-5.5

        ANNUAL              6.4          4.2         -2.1          5.0            2.8          -1.4

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1997       I              4.4          6.9          2.4          3.1            0.3          -1.2
            II              4.8          6.5          1.6          3.3            1.2          -1.4
           III              5.4          6.7          1.2          3.7            1.6          -1.6
            IV              5.5          7.4          1.9          4.7            2.9          -0.7

        ANNUAL              5.0          6.9          1.8          3.7            1.5          -1.3

  1998       I              5.0          6.5          1.4          4.7            3.3          -0.4
            II              4.6          5.3          0.6          5.3            3.8           0.6
           III              4.5          4.2         -0.3          6.1            4.7           1.6
            IV              5.0          3.7         -1.2          5.1            3.8           0.1

        ANNUAL              4.8          4.9          0.1          5.3            3.9           0.5

  1999       I              6.3          3.5         -2.6          4.9           r3.3          -1.3
            II              6.7          4.1         -2.4          5.0            3.0          -1.6
           III              5.8          4.4         -1.4          4.8            2.5          -1.0
            IV              6.9         r4.7        r-2.1          5.1            2.5         r-1.6

        ANNUAL              6.4          4.2         -2.1          5.0            2.8          -1.4

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                March 7, 2000
  r=revised                                                       Source: Bureau of Labor Statistics
Table 4. Durable manufacturing sector:   Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1997       I            125.6        137.5        109.5        109.4           97.3          87.1
            II            128.6        141.7        110.2        110.2           97.7          85.7
           III            131.9        145.6        110.4        110.9           98.0          84.1
            IV            134.3        149.3        111.2        113.2           99.5          84.3

        ANNUAL            130.1        143.5        110.3        110.9           98.2          85.3

  1998       I            135.7        151.7        111.8        114.7          100.7          84.5
            II            138.0        153.8        111.4        116.2          101.6          84.2
           III            142.4        157.1        110.4        118.3          103.0          83.1
            IV            145.7        160.8        110.4        118.9          103.2          81.6

        ANNUAL            140.4        155.9        111.0        117.0          102.2          83.3

  1999       I            149.1        162.0        108.7        120.3         r103.9          80.7
            II            152.9        165.7        108.4        122.1          104.7          79.9
           III            154.8        169.1        109.3        123.8          105.5          80.0
            IV            158.8       r171.9       r108.2        125.3          106.0          78.9

        ANNUAL            153.9        167.2       r108.6        122.9          105.1          79.9

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1997       I              4.8         10.9          5.8          5.6            3.1           0.7
            II              9.9         12.8          2.6          2.8            1.6          -6.5
           III             10.7         11.4          0.6          2.8            1.1          -7.2
            IV              7.4         10.6          3.0          8.3            6.3           0.8

        ANNUAL              7.1         10.2          2.9          3.3            1.1          -3.5

  1998       I              4.3          6.5          2.2          5.5            4.8           1.2
            II              7.1          5.7         -1.4          5.5            3.8          -1.5
           III             13.2          9.0         -3.7          7.2            5.7          -5.3
            IV              9.6          9.6          0.0          2.2            0.6          -6.8

        ANNUAL              7.9          8.6          0.6          5.5            4.1          -2.3

  1999       I              9.7          3.1         -6.0          4.6           r3.0          -4.7
            II             10.5          9.3         -1.1          6.5           r3.1          -3.7
           III              5.1          8.7          3.4          5.7           r3.1           0.5
            IV            r10.8         r6.6        r-3.7         r4.9           r1.9          -5.3

        ANNUAL              9.6          7.3         -2.1          5.0            2.9          -4.2

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1997       I              5.9          9.9          3.8          2.3           -0.4          -3.3
            II              6.6          9.4          2.6          2.9            0.7          -3.5
           III              7.5         10.0          2.3          3.2            1.1          -4.0
            IV              8.2         11.4          3.0          4.8            3.0          -3.1

        ANNUAL              7.1         10.2          2.9          3.3            1.1          -3.5

  1998       I              8.1         10.3          2.1          4.8            3.4          -3.0
            II              7.4          8.5          1.1          5.5            4.0          -1.7
           III              7.9          7.9          0.0          6.6            5.2          -1.2
            IV              8.5          7.7         -0.7          5.1            3.7          -3.2

        ANNUAL              7.9          8.6          0.6          5.5            4.1          -2.3

  1999       I              9.9          6.8         -2.8          4.8            3.3          -4.6
            II             10.7          7.7         -2.7          5.1            3.1          -5.1
           III              8.7          7.6         -1.0          4.7            2.4          -3.7
            IV              9.0         r6.9        r-1.9          5.4           r2.8          -3.3

        ANNUAL              9.6          7.3         -2.1          5.0            2.9          -4.2

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                March 7, 2000
  r=revised                                                       Source: Bureau of Labor Statistics

Table 5. Nondurable manufacturing sector:   Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1997       I            109.8        108.8         99.0        114.8          102.1         104.5
            II            110.0        109.1         99.2        115.7          102.6         105.1
           III            111.7        110.1         98.6        117.0          103.3         104.8
            IV            111.6        111.0         99.5        118.2          104.0         105.9

        ANNUAL            110.8        109.8         99.1        116.4          103.0         105.1

  1998       I            111.7        110.9         99.3        119.7          105.1         107.2
            II            111.6        110.6         99.1        121.3          106.1         108.7
           III            112.0        109.6         97.9        123.1          107.3         109.9
            IV            112.6        109.8         97.5        124.3          107.9         110.4

        ANNUAL            112.0        110.2         98.4        122.1          106.6         109.0

  1999       I            113.7        110.3         97.0        125.7          108.7         110.6
            II            113.4        110.1         97.1        127.2          109.1         112.2
           III            114.5        109.9         96.0        129.0         r110.0         112.7
            IV           r117.3       r111.8        r95.3       r130.1          110.1         110.9

        ANNUAL            114.7       r110.5         96.4        128.0          109.5         111.6

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1997       I              3.9          3.0         -0.9          4.8            2.3           0.8
            II              0.7          1.3          0.7          3.1            1.9           2.4
           III              6.1          3.5         -2.4          4.6            2.9          -1.4
            IV             -0.2          3.6          3.7          4.4            2.5           4.6

        ANNUAL              3.1          3.2          0.1          4.1            1.9           1.0

  1998       I              0.3         -0.6         -0.9          5.0            4.3           4.7
            II             -0.3         -1.1         -0.9          5.4            3.8           5.7
           III              1.5         -3.3         -4.7          6.2            4.8           4.6
            IV              1.8          0.5         -1.3          3.9            2.2           2.0

        ANNUAL              1.1          0.4         -0.6          4.9            3.5           3.8

  1999       I              4.0          1.8         -2.1          4.6           r2.9           0.6
            II             -1.0         -0.8          0.3          4.9           r1.5           5.9
           III              4.2         -0.5         -4.4          5.9           r3.3           1.6
            IV            r10.0         r7.1        r-2.7         r3.2           r0.3          -6.2

        ANNUAL             r2.4          0.3         -2.1         r4.8            2.7           2.3

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1997       I              3.2          3.6          0.4          4.0            1.2           0.8
            II              3.1          3.3          0.2          3.9            1.7           0.7
           III              3.4          2.9         -0.5          4.2            2.1           0.8
            IV              2.6          2.9          0.2          4.2            2.4           1.6

        ANNUAL              3.1          3.2          0.1          4.1            1.9           1.0

  1998       I              1.7          1.9          0.2          4.3            2.9           2.6
            II              1.5          1.3         -0.1          4.9            3.4           3.4
           III              0.3         -0.4         -0.7          5.3            3.9           4.9
            IV              0.8         -1.1         -2.0          5.1            3.8           4.3

        ANNUAL              1.1          0.4         -0.6          4.9            3.5           3.8

  1999       I              1.8         -0.5         -2.3          5.0           r3.4           3.2
            II              1.6         -0.4         -2.0          4.9            2.9           3.3
           III              2.2          0.3         -1.9          4.8            2.5           2.5
            IV             r4.2         r1.9         -2.2         r4.6           r2.0           0.4

        ANNUAL             r2.4          0.3         -2.1         r4.8            2.7           2.3

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                March 7, 2000
  r=revised                                                       Source: Bureau of Labor Statistics
Table 6. Nonfinancial corporations:   Productivity, hourly compensation, unit labor costs, unit profits,
  and prices, seasonally adjusted
 
                Output                      Hourly    Real                Unit     Total    Unit   Implicit
      Year      per all-                    compen-   hourly     Unit     non-     unit     pro-   price
      and       employee          Employee  sation    compen-    labor    labor    costs    fits   deflator
      quarter   hour      Output  hours      (1)      sation(2)  costs    costs(6) (7)      (8)      (4)
  ----------------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1997       I    110.1    125.5     114.0    111.2      98.9     101.0     99.8    100.7    155.6    105.3
            II    110.7    127.5     115.1    112.0      99.3     101.1     99.9    100.8    156.2    105.4
           III    112.4    130.2     115.8    113.3     100.0     100.7     99.2    100.3    161.1    105.4
            IV    113.2    132.3     116.9    115.1     101.2     101.6     98.6    100.8    155.3    105.3

        ANNUAL    111.7    128.9     115.4    113.0     100.0     101.1     99.4    100.6    157.1    105.3

  1998       I    114.2    134.6     117.8    116.4     102.2     101.9     98.0    100.8    153.7    105.2
            II    115.3    136.3     118.1    118.0     103.2     102.3     98.2    101.2    150.1    105.2
           III    117.0    138.7     118.6    119.8     104.4     102.4     98.0    101.2    152.6    105.5
            IV    117.9    140.6     119.3    121.3     105.3     102.9     99.2    101.8    145.3    105.5

        ANNUAL    116.2    137.5     118.4    119.0     103.9     102.4     98.4    101.3    150.4    105.3

  1999       I    119.1    142.7     119.7    122.7     106.1     103.0     98.3    101.7    149.4    105.7
            II    120.1    144.2     120.0    124.2     106.5     103.4     98.7    102.1    148.4    105.9
           III    121.3    146.5     120.8    125.5     107.0     103.5     99.6    102.4    144.7    105.9
  ----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

  1997       I      1.8      6.1       4.3      3.6       1.2       1.8     -0.3      1.2      4.6      1.6
            II      2.3      6.4       4.0      2.7       1.5       0.3      0.5      0.4      1.6      0.5
           III      6.3      8.9       2.5      4.7       2.9      -1.5     -2.6     -1.8     13.0     -0.1
            IV      2.8      6.4       3.5      6.5       4.6       3.6     -2.5      1.9    -13.6     -0.2

        ANNUAL      3.0      6.6       3.5      3.6       1.4       0.6     -0.7      0.2      3.7      0.6

  1998       I      3.7      7.1       3.3      4.8       4.1       1.1     -2.6      0.0     -4.1     -0.5
            II      3.9      5.1       1.2      5.7       4.1       1.7      0.9      1.5     -9.1      0.2
           III      5.9      7.5       1.5      6.3       4.8       0.4     -0.7      0.1      6.8      0.9
            IV      3.2      5.6       2.3      4.9       3.3       1.7      4.9      2.6    -17.8     -0.1

        ANNUAL      4.0      6.7       2.6      5.3       3.9       1.3     -1.0      0.6     -4.3      0.0

  1999       I      4.2      5.9       1.6      4.7      r3.1       0.5     -3.5     -0.7     11.9      0.7
            II      3.3      4.3       1.0      4.8      r1.5       1.4      1.6      1.5     -2.7      1.0
           III      4.1      6.6       2.4      4.5      r2.0       0.4      3.5      1.2     -9.7     -0.1
  ----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

  1997       I      2.6      6.2       3.5      3.5       0.7       0.8     -0.6      0.4      4.0      0.8
            II      2.5      6.2       3.5      3.1       0.9       0.6     -0.2      0.4      3.4      0.7
           III      3.6      7.2       3.5      3.5       1.4      -0.1     -0.6     -0.3      6.4      0.6
            IV      3.3      7.0       3.6      4.3       2.5       1.0     -1.2      0.4      0.9      0.5

        ANNUAL      3.0      6.6       3.5      3.6       1.4       0.6     -0.7      0.2      3.7      0.6

  1998       I      3.8      7.2       3.3      4.6       3.3       0.8     -1.8      0.1     -1.2     -0.1
            II      4.1      6.9       2.6      5.4       3.9       1.2     -1.7      0.4     -3.9     -0.1
           III      4.0      6.5       2.4      5.8       4.4       1.7     -1.2      0.9     -5.3      0.1
            IV      4.1      6.3       2.1      5.4       4.1       1.2      0.6      1.1     -6.5      0.1

        ANNUAL      4.0      6.7       2.6      5.3       3.9       1.3     -1.0      0.6     -4.3      0.0

  1999       I      4.3      6.0       1.7      5.4      r3.8       1.1      0.4      0.9     -2.8      0.4
            II      4.1      5.8       1.6      5.2       3.2       1.0      0.5      0.9     -1.1      0.6
           III      3.7      5.6       1.8      4.8      r2.5       1.0      1.6      1.2     -5.2      0.4
  ----------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                        March 7, 2000
  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 -1.9 and +2.5 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 third 
quarter of 1999.  



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 1978-1998 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.