United States Department of Labor. PRODUCTIVITY AND COSTS Second Quarter 1990

Transcription

1 News ed States Department of Labor Bureau of Labor Statistics Washington, D.C Historical, technical information: (202) Current data : (202) or 1208 Media contact: (202) USDL Wire embargo until 10:00 AM EDT Monday, August 6, PRODUCTVTY AND COSTS Second Quarter The Bureau of Labor Statistics of the U.S. Department of Labor today reported preliminary productivity data -as measured by output of all sons for the second quarter of. The preliminary seasonallyadjusted annual rates of productivity change in the second quarter were: 1.9 cent in the business sector, cent in the nonfarm business sector, cent in manufacturing, 6.7 cent in durable goods manufacturing, and - cent in nondurable goods manufacturing. Productivity advanced in business and nonfarm business as output rose while s decreased. n manufacturing, however, a more rapid productivity increase occurred; although s were unchanged output increased more than in the business and nonfarm business sectors. All of the manufacturing productivity gain took place among durable goods industries, unlike the previous 2 quarters. Second-quarter measures are summarized in table A and appear in detail in tables 1 through 5. Business Productivity increased at a 1.9 cent annual rate during the second quarter of in the business sector, as output rose cent and s of all sons engaged in the sector declined cent (seasonally adjusted annual rates). This was the first decline in s since n the second quarter of, employment rose 0.3 cent and average weekly s declined 0.7 cent. During the first quarter of, productivity had decreased i.5 cent (table 1). NOTE; The productivity and measures in this release reflect the regular 3-year revisions to the national income and product accounts data announced by the Bureau of Economic Analysis of the U.S. Department of Commerce on July 27. Also, indexes are now based on 1982 as 100. See Ravised measures section (page 4), and appendix tables 1-12 (pages 14-25).

2 table A. Productivity and s: Second-quarter measures (Seasonally adjusted annual rates) Hourly ly Produc- compen- compen- Sector tivity Hours sation sation s Percent change from preceding quarter Business Nonfarm business Manufacturing Durable Nondurable Percent change from same quarter a year ago Business Nonfarm business Manufacturing Durable Nondurable ,8 Hourly increased at a 5.9 cent annual rate during the second quarter of, compared with a cent gain during the previous quarter. The second-quarter increase was the largest since. This measure includes wages and salaries, supplements, employer contributions to employee-benefit plans, and taxes. s, which reflect changes in ly and productivity, increased at a 4.0 cent annual rate during the second quarter, compared with a 5.3 cent increase during the first quarter. ly, which takes into account changes in the Consumer Price index for All Urban Consumers (CP-U), increased at a 2.2 cent annual rate during the second quarter. During the first quarter, this measure had declined at a 4.0 cent annual rate. The second quarter increase was the first gain in 7 quarters. The implicit price deflator for business output, which reflects changes in unit s and unit non payments, increased cent in the second quarter, compared with a 4.6 cent rise in the first quarter.

3 Nonfarm bu*ln*s«nonfarm productivity posted its first gain in 6 quarters during the April- June iod of. Productivity increased cent as output rose cent and s of all sons employees, proprietors, and unpaid family workers declined 0.1 cent. During the first quarter of, productivity had decreased 1.9 cent in this sector (table 2). Hourly increased 5.6 cent in the second quarter, or 1.8 cent when the increase in the CP-U was taken into account. During the first quarter, the comparable changes were cent and -4.5 cent, respectively. As in the more comprehensive business sector, the increase in ly was the greatest since (when a 6.8 cent increase occurred in the fourth quarter), and the increase in real ly was the first upward movement in 7 quarters. s increased cent during the second quarter, compared with a 5.2 cent rise during the preceding iod. The implicit price deflator for nonfarm business output rose 4.6 cent in the second quarter, compared with a cent increase one quarter earlier. Productivity increased at a cent seasonally adjusted annual rate in manufacturing in the second quarter of, as output increased cent and s of all sons were unchanged. During the first quarter, productivity had increased at a 5.1 cent rate. The productivity increase in manufacturing resulted from opposite movements in durable and nondurable goods industries. Productivity increased rapidly among durable goods manufacturers, but declined in nondurables (tables 4, 5). The increase in durables productivity reflects the large gain in durable output during the' second quarter. On the other hand, nondurables goods industries exienced a decline in output coupled with a small rise in s. Hourly of all manufacturing workers increased 6.4 cent during the second quarter, compared with a cent increase during the first quarter. This was the largest quarterly increase since the first quarter of (when it rose 6.7 cent). ly rose cent in the second quarter when the increase in consumer prices was taken into account. During the first quarter, this measure fell at a 5.2 cent annual rate. Manufacturing real ly has declined in 10 of the past 14 quarters. s increased at a cent annual rate in the second quarter, compared with a cent decrease during the first quarter of.

4 Table B. Nonfinancial corporations: productivity and related measures (Percent change) Previous and current first quarter Hourly ly mplicit Produc- compen- compen- price Measure tivity Hours sation sation s profits deflator Previous Current Revised measures - The productivity and measures in this press release are based on the latest measures of output and available. While the productivity increase in nonfarm business was revised upward for (from cent to 2.2 cent), downward revisions occurred in. The revised measures show productivity declining in each quarter last year; previously, only the first quarter showed a decrease. For the year as a whole, nonfarm productivity declined 0.3 cent. Previously a 0.9 cent increase was reported. See appendix tables 1-6 for quarterly measures. Revised quarterly and annual output and measures prepared by the Bureau of Economic Analysis (BEA) of the U.S. Department of Commerce were published on July 27 as part of the regular revision -cycle of the national income and product accounts and affect the last 3 years. (For manufacturing, revised output measures will be announced by BEA later this year. Until then, post- manufacturing output will continue to be based oh the Federal Reserve Board's ndex of ndustrial Production.) Annual indexes calculated with 1982 as 100 appear in appendix tables Table B compares previous and current productivity and measures in nonfinancial corporations for the first quarter of. These measures, which were released previously on June 4, show a somewhat greater decline in productivity than when preliminary figures were released. n addition, all of the productivity and measures in this release incorporate recent information on seasonal trends in employment and average weekly s. This new information affected measures begining with Printed historical tables containing new quarterly values are available on request from the Bureau of Labor Statistics, Office of Productivity and Technology, Washington, D.C ; or telephone (202)

5 Complete historical series of productivity and measures also are available on the BLS Major Sector Labor and Multifactor Productivity diskette, formatted for use on BM-compatible microcomputers using LOTUS for $38, prepaid. To order, send a check or money order payable to the Bureau of Labor Statistics to: BLS Data Diskettes, 441 G Street NW, Room 2831 A, Washington, D.C or call (202) Please specify "Major Sector Labor and Multifactor Productivity Diskette". NOTE: The mult if act or productivity measures for 1948 through 198*7 on this diskette will be revised later to incorporate the new information now being introduced in the productivity measures. Noxt release date The next release of productivity and measures is scheduled for 10:00 AM EOT, Tuesday, September 4,. Second-quarter measures for nonfinancial corporations will be released at that time.

6 TECHNCAL NOTES Labor nput: The primary source of s and employment data is the BLS Cutrent Employment Statistics (CES) program, which provides monthly survey data on total employment and average weekly s of production and nonsuvisory workers innonagricultural establishments. Jobs rather than sons are counted. Weekly s are adjusted to the s at work definition using the BLS Hours at Work survey, conducted for this purpose., Data from the BLS Current Population Survey (CPS) are used for farm ; in the nonfarm sector, the National ncome and Product Accounts (NPA) prepared by the Bureau of Economic Analysis of the U.S. Department of Commerce and the CPS are used to measure -input for government enterprises, proprietors, unpaid family workers, and paid employees of private households. : Business sector output is equal to gross national product (GNP) in constant 1982 dollars, less the rest-of-the-world sector, general government, output of nonprofit institutions, output of paid employees of private households, rental value of owner-occupied dwellings, and the statistical discrepancy in computing the NPA. Corresponding exclusions are also made in inputs. Business output, was about 81 cent of GNP in. Nonfarm business, which a1so excludes. farming, was about 7 9 pe rcent of GNP in.. _:....^.- Total manufacturing measures are computed by summing series prepared for the durable and nondurable goods sector Durables include the following 2-_ digit SCindustries: j Primarymetais; fabricated metal products; nonelectrical machinery; electrical ma transportation equipment; instruments; lumber and lumber products; furniture and fixtures; stone, clay, and glass products; and miscellaneous manufactures. Nondurabies include: Textile mill products, apparel products, leather and leather products, printing and publishing, chemicals and chemical products, petroleum products, rubber and plastic products, food, and tobacco products. Manufacturing accounted for about 22 cent of GNP in. Nonfiriancial corporate output is equal to GNP in constant 1982 dollars, less the rest-of-the-world sector, general government, output of nonprofit institutions, output of paid employees of private households, rental value of owner-occupied dwellings, unincorporated business, the output of corporations engaged in banking, finance, stock and commodity trading, and credit and insurance agencies, and the statistical discrepancy in computing the NPA. Nonfinancial corporations accounted for about 60 cent of GNP in. PRODUCTVTY: These productivity measures describe the relationship between real output and the time involved in its production. They show the changes from iod to iod in the amount of goods and services produced. Although these measures relate output to s at work of all sons engaged in a sector, they do not measure the specific'contribution of, 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.

7 Table 1. Business sector: Productivity, ly, unit, and prices, seasonally adjusted Year Hours Compensation tion pay- price compensa- non- mplicit and of of all quarter all sons sons (1) (2) ments (3) deflator (4) V V rl! rl! rl! rl! rl! rill ro.5 ro.o r- r- r-0.2 r- 1.9 r!35.6 r!35.9 r!36.1 r!35.5 r!35.8 r! Percent change r3.5 ro.9 ro.6 r-1.8 r2.1 rl.4 rl!9.7 r!20.0 r!20.6 r!20.7 r!2 r!2 12 ndexes 1982=100 r!32.2 r!3 r!3 r!3 r!3 r! from previous quarter r ro.9 r2.1 ro.l r - r r2.4 rl.3 r r r 5.9 r!04.6 r!0 r!0 r!0 r!03.5 rl at annual r- r- r- r- r- r rl!6.7 rl!7.4 rl!8.2 rl!9.6 rlls.o r!2 12 rate (5) rl.5 r r r4.6 r r r!30.8 r!3 r!3 r!3 r!3 r! r6.3 r7.7 rl.8 rl.6 r5.2 r 5.2 r!2 r!2 r!2 r!2 r!2 r! r r r r3.5 r4.6 V ro.l ro.4 r-0.6 r-0.7 r-0.2 r Percent change r r rl.7 ro.8 r2.1 ro.3 See footnotes, following table 6. r«revised from corresponding quarter of previous year r r rl.5 r r r2.4 r2.1 r r r-0.6 r- r-2.2 r-2.4 r- r- - r4.0 r r r r r r5.1 r6.6 r5.1 r r5.2 r3.6 r4-4 4,,2 r r August 6,

8 Table 2. Nonfarm business sector: Productivity, ly, unit, and prices, seasonally adjusted! Year Hours Compensation tion pay- price compensa- non- mplicit and of of all quarter all sons sons (1) (?) ments (3) deflatorm) V V V rl!2.4 rll2.2 rll rill.a rill.9 rllo r- r-0.5 r-0.8 r-2-2 r-0.3 r-1.9 ro.2 ro.3 r-0.6 r-1.3 r-0.3 r- 0.8 r!36.4 r!36.8 rl37.1 r!36.3 r!36.7 rl rl21v4 r rl22.4 rl22,2 ndexes r!3 r!31.9 r!3 r!3 r!32.1 r! r!0 rl0 rl!6.9 T117.5 rl!8.3 rl!9.8 r118.1 Percent change from previous quarter at annual rate (-6) rl.2 rl.3 ro.6 r-2.1 r rl.4 Percent change from corresponding quarter of previous year r3.6 r rl.7 ro.3 r ro.3 See footnotes following table 6. r-r*vised r! r. roll. WM^.''': ;'::.; ' ' :: <.. "; '.:.''' i -0.1 r r r 2.4 r! r rl.5 rl.8 r r r 5.6 r r r2.4 r r r rlol.l 10 r- r- r-1.0 r-1.3 r-1.8 r r-0.6 r-1.8 r-2.2 r-2.4 r-1.8 r r! r r r r-5.1 r r5.2 r r r r r r r!30.9 r!3 r!34.7 r!35.3 r!3 r! rl.o r9.3 r r5.0 rl r r6.4 r5.8 r3.6 r5,0 r3.6 r!2 r!2 r!23.5 r!24.7 r12 r! r ri.9 r r 4.6 r r r r r August 6,

9 Table 3. Manufacturing sector: Productivity, ly, seasonally adjusted Year and quarter V V (6) of all sons r r!30.9 rl30.5 r!31.3 r!30.1 r!3 13 r r- r rs.l r!4 r!44.5 r!44.0 r!43.5 r!44.0 r! rl.8 and unit. Hours Compensa- compensaof all tion tion sons (l) (2) ndexes 3982=100 rllo.5 rllo.4 rllo.4 r!09.3 rllo.6 r! ro r-0.1 r r- 0.0 r!26.5 r!26.6 r!27.6 r!28.4 r!26.7 r! Percent change from previous qirarter at annual rate (5) r ro.l r3,2 r r r 6.4 rloo.l r98.7 r98.8 r98.5 r98.6 r r- r-5.6 ro.3 r-1.3 r- r-5.2 r97.3 r96.7 r97.8 r97.8 r97.4 r ro.o r- r4.6 r-0.1 ro.7 r- V Percent change from corresponding quarter rl.3 r See footnotes following table 6* r-revised ro ro.8 r of previous year r r r r2.1 r r2.1 r-1.3 r-2.2 r-1.9 r-2.4 r- r ro.8 ro.2 rl.3 ro.5 ro.7 r-0.2 August 6,

10 10 Table 4. Durable manufacturing sector: Productivity, ly, and unit, seasonally adjusted Year and quarter V V of all sons r!4 r!44.8 r!44.7 r!44.8 r!4 r! (6) r!59.7 r!60.8 r!60.2 r!58.5 r!59.8 r!59,l 16 Percent change from r r r r rl Hours Compensa- compensaof all tion tion sons (l) (2) ndexes 1982=100 rill. 8 rlll.o rllo.7 r!09.4 rill. 5 rl r!25.6 r!25.5 r!26.8 r!27.5 r!25.4 r! previous quarter at annual rate (5) ro.2 r- r r3.6 r-0.1 r4.0 r r rl r99.4 r97.9 r98.2 r97.8 r97,6 r r- r-5.8 rl.2 r- r-1.8 r-5.9 r87.9 r86.7 r87.6 r&8.0 r87.5 r rl.6 r»5.3 r4.5 rl.8 ro.4 r» 0.1 V Percent change r rl.9 r r See footnotes following table 6. r*=re vised from corresponding quarter r- 0.0 r of previous year r r r r r r r- r-1.9 r-1.3 r- r-1.8 r ro.4 r-0.1 rl.o ro.6 ro.4 r August 6,

11 11 Table 5. Nondurable manufacturing sector: Productivity, seasonally adjusted Year and quarter V V of all sons rl! rl!2.2 rill. 4 rll rl! rl! (6) r!2 r!2 r!2 r!2 r!2 r!2 12 Percent change from r - r-2. r7.1 rl r -0.6 ly, and unit Cost, Hours Compensa- compensaof all tion tion sons (l) (2) ndexes 1982^100 rl08.6 r!09.5 rllo.o r!09.1 r!09.3 rl previous quarter ro.9 r rl.7 r- r- 0.5 r!27.9 r!28.2 r!28.8 r!29.9 r!28.6 r!3 13 at annual rate (5) ro.9 ro.8 r r r2.4 r 5.7 rl0 rloo.o r99.7 r99.6 rloo.l r r- r-4.9 r-0.8 r-0.6 r- r- rl!3.6 rl! r!15.6 rl!4.6 rl!4.5 rl! r- r2.4 r4.7 r- rl.l r- 6.9 V Percent change r2.4 r-0.3 rl.6 rl.3 r 2.1 See footnotes following table 6. r-revised from corresponding quarter rl.7 r of previous year r r2.4 rl.7 rl.8 r2.4 r r-0.8 r- r- r- r- r rl.5 ro.8 r ro.2 rl.l ro.5 August 6,

12 12 Table 6. Nonfinancial corporations: Productivity,ly, unit, unit profits, and prices, seasonally adjusted Year and quarter V V allemployee rl! rll2.1 rl! rlll.l rill. 9 rllo.5 r- r- ro.8 r- r-1.3 r-2.2 Employee s r!36.2 r!36.4 r!37.1 r!35.9 r!36.4 r!36.0 r-0.1 ro.6 r2.1 r-3.6 r!2 r!2 r!22.1 r!2 r!21.9 r!2 Hourly (1) ndexes r!28.9 r!29.4 r!30.0 r!30.7 r!29.6 r!3 ly (2) r!0 rloo.9 rloo.7 rloo.2 rloo.9 r98.8 rl!4.6 rll5.4 rll5.7 rl!7.6 rll5.8 rll8.9 non (7) rlos.o rllo.6 rl! rll5.2 rill. 8 rl!6.2 Percent change frbm previous quarter at annual rate.(5) rl.l ro.2 r2.4 r rl.3 ro.7 r r rl.4 rl.8 r2.4 r r2.1 r- r- r-1.0 r- r- r-5.5 r5.9 r rl.o r6.9 r r r9.5 r9.9 rlo.2 r6.9 r7.7 r Total unit (8) rl! rl! rlls.o rl!7.0 rl!4.7 rll8.1 r6.8 r4.7 r3.5 r r mplicit pro- price fits deflator (9) (4) r!6 r!6 r!59.3 r!47.2 r!57.9 r!47.6 r-3 rl.5 r-8.5 r-27.1 r-1 rl.2 rll5.9 rl!7.1 rl!7.8 r!18.9 rl!7.4 r!20.0 r2.4 r r2.4 r3.6 r r V r- r- r-1.0 r-1.8 r-1.3 r-1.8 Percent r rl.4 rl.3 r-0.3 rl.l r-0.2 See footnotes following table 6. r«revised change from corresponding r r r r2.2 r rl.9 r-0.6 r-1.8 r-2.1 r-2.2 r- r- quarter of r5.3 r4.7 r3.5 r r r previous year r5.3 r7.4 r8.7 r9.2 r7.7 r7.6 r r r4.8 r-8.1 r-8.5 r-7.0 r-17.8 r-1 r r r r3.6 August 6,

13 13 SOURCE: data from the Bureau of Economic Analysis, U.S. Department of Commerce, and the Federal Reserve Board. Compensation and s data from the Bureau of Labor Statistics, U.S. Department of Labor, and the Bureau of Economic Analysis. RELABLTY: Productivity and measures are regularly revised as more complete information becomes available. The measures are first published 30 days after the close of the reference iod; revisions appear 30 days later, and third revisions after an additional 60 days. n the business sector, the probability is 0.95 that the third publication (third revision) of a quarterly index of output of all sons will differ from the initial value by between -1.8 and +2.1 index points. This interval is based on the formance of this measure between the second quarter of 1976 and the third quarter of. Footnotes, Tables 1-6 (1) Wages and salaries of employees plus employers 1 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 selfemployed. (2) Compensation adjusted for changes in the Consumer Price ndex for All Urban Consumers. (3) non payments include profits, capital consumption allowances, interest, rental income of sons, and indirect taxes. (4) Current dollar gross product divided by constant dollar gross product. (5) Quarterly changes: Percent change compounded at annual rate from the original data rather than index numbers. Annual changes: Percent change between annual average levels. (6) Quarterly manufacturing output measures are based on the index of industrial production prepared monthly by the Board of Governors of the Federal Reserve adjusted by BLS to annual manufacturing output levels (gross product originating) from the National ncome and Product Accounts prepared by the Bureau of Economic Analysis of the U.S. Department of Commerce. (7) non includes capital consumption allowances, interest, rental income of sons, and indirect taxes. For nonfinancial corporations, rental income of sons is zero by definition. (8) Total unit is the sum of and non s. (9) profits include corporate profits with inventory valuation and capital consumption adjustments.

14 14 Appendix table 1. Business sector: Productivity, ly, unit, and prices, seasonally adjusted Year and quarter V V V V V V of all sons Hours of all sons Compensation (l) ndexes (2) Percent change from previous quarter at annual rate (5) Percent change from , corresponding quarter of previous year non payment 8(3) mplicit price deflator (4) See footnotes following table 6. August 6,

15 15 Appendix table 2. Nonfarm business sector: Productivity, ly, unit, and prices, 1967 Year and quarter V V V V V V of all sons , Hours of all sons Compensation U) ndexes (2) , seasonally adjusted Percent change from previous quarter at annual rate (5) Percent change from corresponding e quarter of previous year non payments (3) mplicit price deflator{4) See footnotes following table 6. August 6, Source: Bureau of Laoor Statistics ,

16 16 Appendix table 3. Manufacturing sector: Productivity, ly, and unit, seasonally adjusted Year and quarter V V V V V V of all sons , (6) Hours of all sons ndexes Compensation (l) Percent change from previous quarter at annual rate (5) Percent change from corresponding quarter of previous year (2) See footnotes following table 6. August 6,

17 17 Appendix table 4. Durable manufacturing sector: Productivity, seasonally adjusted Year and quarter V V V V V V ly, and unit, Hours Compensa- compensa (6) of all tion tion of all sons sons (l) (2) Percent ndexes change from corresponding quarter of previous year , Percent change from previous quarter at annual rate (5) See footnotes following table 6. August 6,

18 18 Appendix table 5, Nondurable manufacturing sector: Productivity, ly, and unit, seasonally adjusted Year and quarter V in V V V V V of all sons (6) Hours of all sons ndexes Compensation (l) (2) 3-« Percent change from corresponding quarter of previiaus year Percent change from previous quarter at annual rate (5) See footnotes following table 6. August 6, 0.0

19 19 Appendix table 6. Nonfinancial corporations: Productivity, ly, unit, unit profits, and prices, seasonally adjusted Year and quarter allemployee V V V V 7 V 8 V Employee s Hourly (1) ly (2) ndexes 1992= non (7) Total unit (8) profits (9) Percent change from previous quarter at annual rate (5) Percent change from corresponding quarter of previous year See footnotes following table C mplicit price deflator (4} August 6,

20 20 Appendix table 7. Business sector: Productivity, ndexes 1962*100 ly, unit, and prices Year of all sons ^ a Hours of all sons Compensation (l) X (2) , non payments (3) mplicit price deflator (4) See footnotes following table 6. August 6,

21 21 Appendix table 8, ndexes Nonfarm business sector: Productivity, ly, unit, and prices Year of all sons Hours of all sons Compensation (l) (2) non payments (3) mplicit price deflator (4) , t , , See footnotes following table 6. August 6,

22 22 Appendix table 9. Manufacturing sector: i Productivity, ly, and unit ndexes Year 194? of all sons ? Hours <6) of all sons , S:J Compensation (l) {2} ; See footnotes following table 6. August 6,

23 23 Appendix table 10. Durable manufacturing sector: Productivity, ndexes Year of all sons (6) Hours of all sons ly, and unit Compensation (l) " (2) See footnotes following table 6. August 6,

24 24 Appendix : table 11. Nondurable manufacturing sector: Productivity, ly, ndexes 1982=100 and unit Year of all sons i' (6) 3 3 ^ ; 45.5! , : -95vl Hours of all sons Oompensation - (1) , (2) > * See footnotes following table 6. August 6, Source; Bureau of Labor Statistics

25 25 Appendix table 12. Nonfinanclal corporations: Productivity, ly, unit, unit profits, and prices ndexes Year * allemployee Employee s Hourly (1) ly ( ) non (7) Total unit (8) profits (9) ' mplicit price deflator (4) See footnotes following table 6. August 6,