|| MAIN | SEARCH | FEEDBACK | FAQ | GLOSSARY | COUNTRIES | MAPS | ITA HOME PAGE ||
2. Vital Statistics
3. Health and Nutrition
5. Law Enforcement, Courts
6. Geography and Environment
7. Parks, Recreation, Travel
9. State and Local Government
Finances and Employment
10. Federal Government
Finances and Employment
11. National Defense and
12. Social Insurance and Human
13. Labor Force, Employment,
14. Income, Expenditures, and
16. Banking, Finance, and
17. Business Enterprise
18. Communications and
20. Science and Technology
21. Transportation - Land
22. Transportation - Air
24. Natural Resources
25. Construction and Housing
27. Domestic Trade and
28. Foreign Commerce and Aid
29. Outlying Areas
30. Comparative International
31. Industrial Outlook
32. 1997 Economic Census
1 Refers to gross sectoral product, annual-weighted.
2 Hours at work of all persons engaged in the business and nonfarm business sectors (employees, proprietors, and unpaid family workers); employees' and proprietors' hours in manufacturing.
3 Wages and salaries of employees plus employers' contributions for social insurance and private benefit plans. Also includes an estimate of same for self-employed. Real compensation deflated by the consumer price index research series, see text,
Section 15, Prices. 4 Hourly compensation divided by output per
hour. 5 All changes are from the immediate prior year.
Source: U.S. Bureau of Labor Statistics, News USDL 00-125, Productivity and Costs; and Internet site
http://stats.bls.gov/newsrels.htm **************************************************************************************** Output per hour measures Output. Real gross domestic product in the business and nonfarm business sectors is the basis of the output components of the major sector labor productivity and multifactor productivity measures. These output components are based on and are consistent with the National Income and Product Accounts (NIPA), including the gross domestic product (GDP) measure, prepared by the Bureau of Economic Analysis (BEA) of the U.S. Department of Commerce6.
Real business sector output is an annual-weighted (Fisher-Ideal) index. It is constructed from the gross domestic product (GDP) excluding the following outputs: General government, nonprofit institutions, paid employees of private households, and the rental value of owner-occupied dwellings. These same exclusions are made when calculating current dollar output for the sector. The business sector thereby excludes many activities where it is difficult to draw inferences on productivity from NIPA output measures. Such inferences would be questionable mainly because the output measures are based largely on incomes of input factors. The farm sector, which is subject to unique external forces, also is excluded to yield the nonfarm business sector, the principal focus of many productivity studies. Nonfinancial corporate output is similar to that of the business sector but also excludes unincorporated businesses and those corporations which are depository institutions, nondepository institutions, security and commodity brokers, insurance carriers, regulated investment offices, small business offices, and real estate investment trusts.
Annual manufacturing indexes for both the quarterly labor productivity and KLEMS multifactor productivity measures are constructed by deflating the current-dollar industry value of production provided by the U.S. Bureau of the Census with data from BEA. These deflators are constructed by BEA by combining data from the BLS producer price program and other sources. The industry shipments are aggregated using annual weights, and intrasector transactions are removed7. 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 the annual indexes of manufacturing sector output prepared by BLS.
Labor input. The primary source of hours and employment data is the BLS Current Employment Statistics (CES) program, which provides monthly survey data on total employment and employment and average weekly hours of production and nonsupervisory workers in nonagricultural establishments. Jobs rather than persons are counted, so that multiple jobholders are counted more than once.
The CES data are based on payroll records from a sample of establishments in which the probability of sample selection is related to the establishment size. Data on employment, hours, and earnings are collected monthly; the reference period for these data is the payroll period including the 12th of the month. (The CES methods are described in chapter 2.) Establishment data are published monthly in Employment and Earnings.
Because CES data include only nonfarm wage and salary workers, data from the Current Population Survey (CPS) are used for farm employment. In the nonfarm sector, the CPS is also used for proprietors and unpaid family workers. Government enterprise hours are developed from the National Income and Product Accounts estimates of employment and CPS data on average weekly hours.
Separate estimates for employment and hours paid are developed for each major sector, converted to an hours-at-work basis. The labor input of employees of nonprofit corporations are estimated based on data from the Commerce Department's Bureau of the Census and Bureau of Economic Analysis and subtracted from the totals for each major sector. Hours of labor input are treated as homogeneous units; no distinction is made among workers with different skill levels or wages.
For nonmanufacturing sectors, employment and average weekly hours are computed from the CES, CPS, and NIPA sources. Although CES data on average weekly hours refer only to nonsupervisory workers, it is assumed for the computation of hours that the length of the workweek in each nonmanufacturing industry is the same for all wage and salary workers.
In manufacturing, separate measures for production and nonproduction workers' hours are derived and aggregated to the manufacturing total. Employment and average weekly hours for production workers and employment for nonproduction workers are taken directly from CES data. Average weekly hours for nonproduction workers were developed from BLS studies of wages and supplements in manufacturing which provide data on the regularly scheduled workweek of white-collar employees.
In the CES, weekly hours are measured as hours paid rather than hours at work. The Hours at Work Survey is used to convert the hours paid of nonagricultural production and nonsupervisory employees to an hours-at-work basis.8 Hours at work exclude all forms of paid leave, but include paid time to travel between job sites, coffee breaks, and machine downtime. This survey of about 5,500 establishments has collected quarterly and annual ratios of hours at work to hours paid since 1981.9 (See BLS form 2000P1 in the printed edition of the Handbook of Methods for a sample data collection form for manufacturing industries. Form 2000N1 is a virtually identical form for nonmanufacturing industries and is not reproduced.) Ratios are developed for each 2-digit SIC industry within manufacturing and for each 1-digit SIC industry outside of manufacturing.
Unpublished data and one-time surveys have been used to extend the annual ratios back to 1947 as well as develop ratios for nonproduction and supervisory workers.10 The quarterly ratios are not currently used in the quarterly measures of labor input. Instead, a quadratic minimization formula devised by Frank Denton is used to generate quarterly ratios.11
The resultant quarterly measures are used to convert the paid hours of nonfarm employees to an hours-at-work basis. The estimates of hours of farm workers, proprietors, unpaid family workers, employees of government enterprises, and paid employees of private households are collected on an hours-at-work basis. These hours are only adjusted to include information on those persons who are employed but not at work during the survey week.
Compensation and labor costs. BEA develops employee compensation data as part of the national income accounts. These quarterly data include direct payments to laborwages and salaries (including executive compensation), commissions, tips, bonuses, and payments in kind representing income to the recipientsand supplements to these direct payments. Supplements consist of vacation and holiday pay, all other types of paid leave, employer contributions to funds for social insurance, private pension and health and welfare plans, compensation for injuries, etc.
The compensation measures taken from establishment payrolls refer exclusively to wage and salary workers. Labor cost would be seriously understated by this measure of employee compensation alone in sectors such as farm and retail trade, where hours at work by proprietors represent a substantial portion of total labor input. BLS, therefore, imputes a compensation cost for labor services of proprietors and includes the hours of unpaid family workers in the hours of all employees engaged in a sector. Labor compensation per hour for proprietors is assumed to be the same as that of the average employee in that sector for measures found in the BLS news release, "Productivity and Costs."
These tables are based on figures supplied by the United States Census Bureau, U.S. Department of Commerce and are subject to revision by the Census Bureau.
Copyright © 2006 Photius Coutsoukis and Information Technology Associates, all rights reserved.