Internet address: http://www.bls.gov USDL 08-1343
Technical information: (202) 691-5654 For Release: 10:00 A.M. EDT
Media contact: (202) 691-5902 Friday, September 26, 2008
INTERNATIONAL COMPARISONS OF MANUFACTURING PRODUCTIVITY AND UNIT LABOR
COST TRENDS, 2007
Manufacturing labor productivity increased in 2007 in 14 of the 16
economies compared by the U.S. Department of Labor's Bureau of Labor
Statistics. (See chart 1.) The Republic of Korea and Taiwan had the
largest productivity increases of 8.7 percent each, while Germany followed
with an increase of 5.0 percent. The United States productivity increase
of 4.1 percent was the fourth largest among the 16 economies compared.
Italy and Norway both had declines in productivity (-0.5 and -0.2 percent,
respectively).
Over the 2000-2007 period, of the 16 economies studied, only Korea,
Taiwan, and Sweden had greater productivity growth in manufacturing than
the United States. Average annual growth rates for selected measures
over various time periods are shown in tables A and B.
The data presented for the United States differ from those
appearing in BLS Productivity and Costs news releases. (See technical
notes.)
PRINTED COPY CONTAINS CHART AT THIS POINT: Chart 1 Percent change in
manufacturing output per hours, 2006-2007
-2-
Expressed in national currency units, manufacturing unit labor costs
increased in ten and declined in six of the economies in 2007. The
decline for the United States (-0.5 percent) was the fifth steepest
decline among the economies compared. (See chart 2.)
However, expressed in U.S. dollars, manufacturing unit labor costs
increased in 13 of the economies and declined in three. Declines in
the dollar's exchange rate reversed the direction of movement in three
countries. The largest contrast was for Australia, from +2.8 percent
in unit labor costs in national currency to +14.5 percent in unit labor
costs expressed in U.S. dollars. This difference can be explained by
the strong appreciation of the Australian dollar relative to the U.S.
dollar.
PRINTED COPY CONTAINS CHART AT THIS POINT: Chart 2 Percent change in
manufacturing unit labor costs, 2006-2007
-3-
Table A. Output per hour, hourly compensation, unit labor costs, and related measures
Manufacturing, 16 countries or areas, 2006-2007
Percent change
---------------------------------------------------------------------------------------------------------------
Output Total Hourly Unit Labor Costs
Country per Total Employ- Average compen- compen- National U.S. Exchange
or area Hour Output hours ment hours sation sation currency dollars rate(1)
---------------------------------------------------------------------------------------------------------------
United States 4.1 2.3 -1.7 -1.7 0.0 1.7 3.5 -0.5 -0.5 --
Canada 2.1 -1.0 -3.1 -2.9 -0.2 0.6 3.8 1.6 7.4 5.6
Australia 3.1 3.4 0.2 1.8 -1.5 6.3 6.0 2.8 14.5 11.4
Japan 2.8 2.8 -0.1 0.3 -0.4 -0.3 -0.3 -3.0 -4.2 -1.2
Korea, Republic of 8.7 6.5 -2.1 -1.3 -0.8 5.5 7.8 -0.9 1.8 2.7
Taiwan 8.7 10.3 1.5 1.4 0.1 3.2 1.6 -6.5 -7.5 -1.1
Belgium 2.1 2.5 0.3 0.4 -0.1 3.0 2.7 0.5 9.7 9.1
Denmark 0.7 4.1 3.4 0.4 2.9 5.2 1.7 1.1 10.4 9.2
France 2.6 1.2 -1.3 -1.3 0.0 1.6 2.9 0.3 9.5 9.1
Germany 5.0 6.3 1.3 1.3 -0.1 3.0 1.7 -3.1 5.8 9.1
Italy -0.5 1.0 1.5 0.9 0.6 3.7 2.1 2.6 12.0 9.1
Netherlands 2.8 3.2 0.4 0.2 0.3 3.4 2.9 0.2 9.3 9.1
Norway -0.2 4.3 4.6 3.8 0.7 9.5 4.7 4.9 14.9 9.5
Spain 3.8 2.8 -1.0 -0.6 -0.4 3.8 4.9 1.0 10.3 9.1
Sweden 0.9 2.5 1.6 0.5 1.1 5.2 3.5 2.6 12.0 9.1
United Kingdom 2.5 0.6 -1.9 -2.2 0.4 0.5 2.5 -0.1 8.5 8.6
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(1) Value of foreign currency relative to the U.S. dollar.
Additional data available
Annual indexes of the variables shown in table A are estimated for
the time period 1950-2007 and are available at the Bureau of Labor
Statistics, Division of Foreign Labor Statistics website at
http://www.bls.gov/fls/home.htm. However, for analytical purposes, the
international comparisons in this release go back to 1979.
For further information, contact the Office of Productivity and
Technology by phone at 202-691-5654, by e-mail at flspr@bls.gov, or by
mail at Bureau of Labor Statistics, 2 Massachusetts Avenue, NE, Room
2150, Washington, DC 20212.
-4-
Manufacturing productivity, output, and labor input
Manufacturing productivity increased in 14 of the 16 economies
compared in 2007. The United States increase of 4.1 was the fourth
largest among the 16 economies. This was slightly above the 3.9
percent U.S. average annual increase since 1979. Korea and Taiwan led
in manufacturing productivity growth (+8.7 percent each), followed by
Germany (+5.0 percent). Manufacturing productivity decreased in Italy
and in Norway (-0.5 percent and -0.2 percent respectively). (See
tables A and B.)
Manufacturing output increased in 15 of the 16 economies in 2007.
Taiwan and Korea were the leaders in the growth of output. In 2007,
growth in manufacturing output in Germany, Taiwan and Norway was
noticeably higher than their average annual rates of increase over the
1979-2007 period. The U.S. increase of 2.3 percent was somewhat lower
than its average annual increase since 1979.
While 15 of the manufacturing sectors had increases in 2007 in
output, 9 had increases in total hours worked. Norway and Denmark had
the largest increases in total hours worked of 4.6 and 3.4 percent,
respectively. Canada had the steepest decline (-3.1 percent) in hours
in 2007, followed by Korea (-2.1 percent), the United Kingdom
(-1.9 percent). The United States had the fourth steepest decline in
hours worked (-1.7 percent).
For the period 2000-2007, total hours worked in manufacturing
declined for all 16 economies. The United Kingdom had the steepest
average annual decline (-3.9 percent), followed by the United States (-
3.1 percent).
Manufacturing employment increased in 10 of the 16 economies in
2007. Norway had the largest increase in employment (+3.8 percent),
and Australia was second (+1.8 percent). Canada had the largest
decline in employment (-2.9 percent), followed by the United Kingdom (-
2.2 percent) and the United States (-1.7 percent).
Over the 2000-2007 period, the United Kingdom and the United States
experienced the steepest average annual declines in manufacturing
employment (-4.0 and -3.0 percent respectively).
In 2007 average hours worked in manufacturing declined in 7 of the
16 economies and increased in 7. The United States and France showed
no change in average hours worked. This compares to 11 economies with
declining average annual manufacturing hours over the 2000-2007 period.
Australia and Korea had the steepest declines in average hours worked
in 2007. Denmark had the largest increase in average hours worked
(+2.9 percent) and Sweden followed with a growth of 1.1 percent.
-5-
Manufacturing hourly compensation and unit labor costs
Total labor compensation in manufacturing increased in 15 of the 16
economies in 2007. The largest increases were in Norway (+9.5 percent)
and Australia (+6.3 percent). U. S. compensation rose by 1.7 percent.
Japan was the only economy with a decline in total labor compensation.
(See tables A and B.)
Hourly compensation in manufacturing also increased in 15 of the 16
economies in 2007, with Japan again the exception. The largest
increases were in the Korea (+7.8 percent) and Australia (+6.0
percent). The U.S. increase of 3.5 percent in hourly compensation was
below its average annual increase since 1979. (See tables A and B.)
Expressed in national currencies, unit labor costs increased in 10
economies in 2007 and decreased in 6. The largest increase occurred in
Norway (+4.9 percent) and the largest decline was in Taiwan (-6.5
percent). Unit labor costs in U.S. manufacturing decreased by 0.5
percent.
Expressed in U.S. dollars, manufacturing unit labor costs increased
in 13 economies in 2007 and declined in 3. The unit labor costs of
three economies, Germany, the United Kingdom, and Korea, went from
decreases to increases when computed on a U.S. dollar basis.
Australia, with the largest currency appreciation, showed the largest
difference, from +2.8 percent in unit labor costs in national currency
to +14.5 percent in unit labor costs expressed in U.S. dollars.
Movements in exchange rates often are the dominant force behind
changes in comparative unit labor costs and international
competitiveness. In 2007, the U.S. dollar weakened against most of the
currencies being compared. The only exceptions were Japan and Taiwan,
where the currencies depreciated against the dollar. This depreciation
of the U.S. dollar against most currencies continues a trend that began
in 2001. In 2007, the dollar fell 9.1 percent against the euro,
following a decline of 0.9 percent in 2006.
-6-
Table B. Output per hour, hourly compensation, unit labor costs, and related measures
Manufacturing, 16 countries or areas, 1979-2007
Average annual rates of change(1)
--------------------------------------------------------------------------------------------------------
Country or area 1979-2007 1979-1990 1990-1995 1995-2000 2000-2007 2005-2006 2006-2007
--------------------------------------------------------------------------------------------------------
Output per hour
United States 3.9 2.8 3.7 5.6 4.6 2.2 4.1
Canada 2.4 2.1 3.4 3.8 1.1 -0.1 2.1
Australia 2.3 2.2 1.3 3.5 2.1 1.0 3.1
Japan 3.6 3.8 3.3 3.4 3.8 1.9 2.8
Korea, Republic of NA NA 9.4 10.8 7.6 10.1 8.7
Taiwan 5.9 6.1 4.7 5.6 6.4 7.1 8.7
Belgium 3.4 4.2 3.1 3.0 2.7 2.2 2.1
Denmark 2.3 2.2 2.7 1.8 2.5 5.1 0.7
France 3.8 3.8 3.4 4.6 3.5 4.0 2.6
Germany (2) 3.0 2.1 2.9 3.7 3.8 7.1 5.0
Italy 2.2 3.4 3.8 1.4 -0.2 -0.4 -0.5
Netherlands 3.3 3.2 3.7 3.3 3.2 3.2 2.8
Norway 1.9 1.9 0.1 1.4 3.7 2.9 -0.2
Spain 2.5 3.3 3.1 0.8 2.1 2.0 3.8
Sweden 4.4 2.1 5.5 6.8 5.6 5.9 0.9
United Kingdom 3.6 4.1 2.8 2.7 3.9 4.9 2.5
Output
United States 2.8 2.2 3.6 5.4 1.4 2.9 2.3
Canada 2.1 1.9 2.2 6.2 -0.3 -1.0 -1.0
Australia 1.5 1.6 0.8 2.6 1.1 -1.0 3.4
Japan 2.7 4.7 0.4 1.2 2.3 4.3 2.8
Korea, Republic of 8.8 10.7 8.2 7.9 6.9 8.5 6.5
Taiwan 6.2 7.4 4.4 5.8 5.7 7.5 10.3
Belgium 1.9 2.6 0.6 2.9 0.9 2.7 2.5
Denmark 1.2 1.3 2.1 1.7 0.3 5.4 4.1
France 1.6 1.5 0.6 3.4 1.2 1.1 1.2
Germany (2) 1.3 1.2 -1.0 2.2 2.5 5.8 6.3
Italy 1.5 2.6 1.6 1.2 -0.2 1.2 1.0
Netherlands 2.2 2.4 2.0 3.3 1.4 2.7 3.2
Norway 1.0 -0.5 0.7 1.4 3.3 6.9 4.3
Spain 2.2 2.1 0.6 5.0 1.5 1.9 2.8
Sweden 3.7 1.7 3.8 7.4 4.3 5.2 2.5
United Kingdom 0.6 0.9 0.5 1.3 -0.1 1.6 0.6
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Continued on next page
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Table B. Output per hour, hourly compensation, unit labor costs, and related measures
Manufacturing, 16 countries or areas, 1979-2007
Average annual rates of change(1)
--------------------------------------------------------------------------------------------------------
Country or area 1979-2007 1979-1990 1990-1995 1995-2000 2000-2007 2005-2006 2006-2007
--------------------------------------------------------------------------------------------------------
Total hours
United States -1.1 -0.6 -0.1 -0.1 -3.1 0.7 -1.7
Canada -0.2 -0.2 -1.2 2.3 -1.3 -0.9 -3.1
Australia -0.8 -0.7 -0.5 -0.9 -1.0 -1.9 0.2
Japan -0.9 0.8 -2.8 -2.1 -1.4 2.4 -0.1
Korea, Republic of NA NA -1.1 -2.6 -0.7 -1.4 -2.1
Taiwan 0.3 1.2 -0.3 0.1 -0.6 0.3 1.5
Belgium -1.5 -1.6 -2.4 -0.1 -1.7 0.5 0.3
Denmark -1.1 -1.0 -0.7 -0.1 -2.2 0.3 3.4
France -2.1 -2.2 -2.8 -1.1 -2.3 -2.8 -1.3
Germany (2) -1.6 -0.9 -3.8 -1.4 -1.3 -1.2 1.3
Italy -0.7 -0.8 -2.1 -0.2 -0.1 1.6 1.5
Netherlands -1.1 -0.9 -1.7 0.0 -1.8 -0.5 0.4
Norway -0.9 -2.3 0.6 0.0 -0.4 3.9 4.6
Spain -0.3 -1.2 -2.4 4.1 -0.6 -0.1 -1.0
Sweden -0.7 -0.4 -1.7 0.5 -1.2 -0.7 1.6
United Kingdom -2.8 -3.1 -2.3 -1.4 -3.9 -3.1 -1.9
Employment
United States -1.2 -0.8 -0.5 0.0 -3.0 -0.6 -1.7
Canada -0.3 -0.3 -1.5 2.2 -1.2 -1.0 -2.9
Australia -1.3 -1.3 -2.3 -1.1 -0.7 -1.2 1.8
Japan -0.6 1.0 -1.6 -2.0 -1.6 1.5 0.3
Korea, Republic of NA NA -0.8 -2.5 0.4 0.3 -1.3
Taiwan 0.9 2.0 -0.3 0.4 0.2 1.1 1.4
Belgium -1.4 -1.6 -2.2 -0.6 -1.4 -1.1 0.4
Denmark -1.1 -0.4 -1.2 -1.2 -2.0 -0.2 0.4
France -1.6 -1.8 -2.5 -0.3 -1.8 -1.9 -1.3
Germany (2) -1.2 -0.1 -4.2 -0.8 -1.0 -0.9 1.3
Italy -0.7 -0.8 -1.9 -0.2 0.2 0.9 0.9
Netherlands -1.0 -0.6 -1.6 0.1 -1.8 -0.6 0.2
Norway -1.0 -2.2 0.4 0.2 -0.7 3.9 3.8
Spain 0.1 -0.7 -2.0 3.3 0.5 -0.2 -0.6
Sweden -1.4 -1.0 -3.5 0.2 -1.4 -0.7 0.5
United Kingdom -2.8 -2.9 -2.7 -1.2 -4.0 -2.7 -2.2
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Continued on next page
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Table B. Output per hour, hourly compensation, unit labor costs, and related measures
Manufacturing, 16 countries or areas, 1979-2007
Average annual rates of change(1)
--------------------------------------------------------------------------------------------------------
Country or area 1979-2007 1979-1990 1990-1995 1995-2000 2000-2007 2005-2006 2006-2007
--------------------------------------------------------------------------------------------------------
Average hours
United States 0.1 0.2 0.4 -0.1 -0.1 1.3 0.0
Canada 0.1 0.1 0.3 0.1 -0.1 0.1 -0.2
Australia 0.6 0.6 1.9 0.3 -0.3 -0.7 -1.5
Japan -0.3 -0.2 -1.3 -0.1 0.1 0.8 -0.4
Korea, Republic of NA NA -0.2 -0.1 -1.1 -1.7 -0.8
Taiwan -0.6 -0.8 0.0 -0.3 -0.8 -0.8 0.1
Belgium 0.0 0.0 -0.2 0.5 -0.3 1.6 -0.1
Denmark 0.0 -0.5 0.6 1.1 -0.2 0.5 2.9
France -0.5 -0.5 -0.3 -0.8 -0.5 -0.9 0.0
Germany (2) -0.4 -0.9 0.4 -0.6 -0.3 -0.2 -0.1
Italy -0.1 0.1 -0.2 0.0 -0.3 0.7 0.6
Netherlands -0.1 -0.2 0.0 -0.1 0.0 0.1 0.3
Norway 0.0 -0.1 0.2 -0.2 0.3 0.0 0.7
Spain -0.4 -0.5 -0.4 0.8 -1.1 0.2 -0.4
Sweden 0.7 0.7 1.9 0.3 0.2 0.0 1.1
United Kingdom 0.0 -0.2 0.4 -0.1 0.1 -0.4 0.4
Total labor compensation(3): National currency basis
United States 3.5 4.9 3.4 4.5 0.8 4.9 1.7
Canada 4.4 6.5 2.4 5.2 2.0 1.0 0.6
Australia NA NA 3.2 3.1 4.5 4.4 6.3
Japan 1.7 5.5 0.7 -1.0 -1.5 0.9 -0.3
Korea, Republic of 13.5 19.6 17.6 5.4 7.3 7.0 5.5
Taiwan 7.3 13.5 6.8 3.6 1.3 2.3 3.2
Belgium 2.7 4.4 1.3 1.9 1.5 2.5 3.0
Denmark 4.2 7.0 2.3 2.8 2.2 3.4 5.2
France 3.5 6.7 1.6 1.7 1.3 1.9 1.6
Germany (2) 2.7 4.6 2.4 1.6 0.9 2.9 3.0
Italy 6.3 11.6 3.9 2.4 2.9 3.6 3.7
Netherlands 2.8 3.2 2.7 3.4 1.8 2.3 3.4
Norway 5.3 6.4 4.1 5.1 4.5 9.8 9.5
Spain 6.8 10.1 5.5 5.6 3.6 4.2 3.8
Sweden 5.3 8.8 1.9 5.3 2.6 2.1 5.2
United Kingdom 3.8 7.1 1.5 3.3 0.7 3.7 0.5
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Continued on next page
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Table B. Output per hour, hourly compensation, unit labor costs, and related measures
Manufacturing, 16 countries or areas, 1979-2007
Average annual rates of change(1)
--------------------------------------------------------------------------------------------------------
Country or area 1979-2007 1979-1990 1990-1995 1995-2000 2000-2007 2005-2006 2006-2007
--------------------------------------------------------------------------------------------------------
Hourly compensation(3): National currency basis
United States 4.6 5.5 3.5 4.7 4.0 4.1 3.5
Canada 4.7 6.8 3.6 2.9 3.4 1.9 3.8
Australia NA NA 3.8 4.0 5.6 6.4 6.0
Japan 2.6 4.6 3.6 1.2 0.0 -1.4 -0.3
Korea, Republic of NA NA 18.9 8.1 8.1 8.6 7.8
Taiwan 7.0 12.1 7.1 3.4 2.0 1.9 1.6
Belgium 4.2 6.1 3.8 2.0 3.3 2.1 2.7
Denmark 5.3 8.1 2.9 2.9 4.5 3.1 1.7
France 5.8 9.1 4.5 2.8 3.7 4.9 2.9
Germany (2) 4.4 5.6 6.4 3.1 2.2 4.1 1.7
Italy 7.1 12.5 6.1 2.7 3.0 2.0 2.1
Netherlands 3.9 4.1 4.5 3.4 3.6 2.8 2.9
Norway 6.3 9.0 3.4 5.2 4.9 5.7 4.7
Spain 7.2 11.4 8.2 1.4 4.2 4.3 4.9
Sweden 6.0 9.1 3.7 4.8 3.9 2.9 3.5
United Kingdom 6.8 10.5 3.9 4.7 4.8 7.1 2.5
Unit labor costs(3): National currency basis
United States 0.7 2.6 -0.2 -0.8 -0.6 1.9 -0.5
Canada 2.2 4.6 0.3 -0.9 2.3 2.0 1.6
Australia NA NA 2.4 0.5 3.4 5.4 2.8
Japan -0.9 0.8 0.3 -2.2 -3.6 -3.2 -3.0
Korea, Republic of 4.3 8.1 8.7 -2.4 0.4 -1.4 -0.9
Taiwan 1.1 5.6 2.3 -2.1 -4.2 -4.9 -6.5
Belgium 0.8 1.8 0.7 -0.9 0.6 -0.1 0.5
Denmark 2.9 5.7 0.2 1.1 1.9 -2.0 1.1
France 1.9 5.1 1.0 -1.7 0.1 0.9 0.3
Germany (2) 1.4 3.3 3.4 -0.5 -1.5 -2.7 -3.1
Italy 4.8 8.8 2.2 1.2 3.1 2.4 2.6
Netherlands 0.6 0.8 0.7 0.1 0.4 -0.4 0.2
Norway 4.2 6.9 3.3 3.7 1.1 2.7 4.9
Spain 4.5 7.8 4.9 0.5 2.0 2.3 1.0
Sweden 1.6 6.9 -1.8 -1.9 -1.6 -2.9 2.6
United Kingdom 3.1 6.2 1.1 2.0 0.9 2.1 -0.1
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Continued on next page
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Table B. Output per hour, hourly compensation, unit labor costs, and related measures
Manufacturing, 16 countries or areas, 1979-2007
Average annual rates of change(1)
--------------------------------------------------------------------------------------------------------
Country or area 1979-2007 1979-1990 1990-1995 1995-2000 2000-2007 2005-2006 2006-2007
--------------------------------------------------------------------------------------------------------
Unit labor costs(3): U.S. dollar basis
United States 0.7 2.6 -0.2 -0.8 -0.6 1.9 -0.5
Canada 2.6 4.6 -2.9 -2.4 7.1 9.0 7.4
Australia NA NA 1.3 -4.2 8.9 4.1 14.5
Japan 1.3 4.6 9.4 -4.8 -4.8 -8.4 -4.2
Korea, Republic of 1.9 4.4 6.9 -9.5 3.3 5.8 1.8
Taiwan 1.5 8.5 2.7 -5.3 -4.9 -6.0 -7.5
Belgium 0.8 0.6 3.3 -8.4 6.4 0.8 9.7
Denmark 2.8 4.1 2.2 -6.1 7.9 -1.1 10.4
France 1.4 2.7 2.8 -8.4 6.0 1.8 9.5
Germany (2) 2.3 4.5 5.9 -8.0 4.2 -1.8 5.8
Italy 2.8 5.2 -3.9 -3.7 9.1 3.3 12.0
Netherlands 1.4 1.7 3.3 -7.6 6.2 0.5 9.3
Norway 3.7 4.9 3.1 -2.9 7.2 3.2 14.9
Spain 2.3 3.8 0.8 -6.6 8.0 3.2 10.3
Sweden -0.1 3.8 -5.4 -6.7 2.8 -1.6 12.0
United Kingdom 2.9 4.5 -1.4 1.1 4.9 3.4 8.5
Exchange rates(4)
United States -- -- -- -- -- -- --
Canada 0.3 0.0 -3.2 -1.6 4.8 6.8 5.6
Australia -1.0 -3.2 -1.1 -4.7 5.4 -1.2 11.4
Japan 2.2 3.8 9.1 -2.7 -1.3 -5.3 -1.2
Korea, Republic of -2.3 -3.4 -1.7 -7.3 2.8 7.3 2.7
Taiwan 0.3 2.7 0.3 -3.3 -0.7 -1.2 -1.1
Belgium 0.0 -1.2 2.5 -7.6 5.8 0.9 9.1
Denmark -0.1 -1.5 2.0 -7.1 5.8 0.9 9.2
France -0.4 -2.2 1.8 -6.8 5.8 0.9 9.1
Germany (2) 0.9 1.1 2.5 -7.5 5.8 0.9 9.1
Italy -1.9 -3.3 -6.0 -4.9 5.8 0.9 9.1
Netherlands 0.8 0.9 2.6 -7.6 5.8 0.9 9.1
Norway -0.5 -1.9 -0.3 -6.4 6.0 0.5 9.5
Spain -2.1 -3.7 -3.9 -7.1 5.8 0.9 9.1
Sweden -1.6 -2.9 -3.7 -4.9 4.5 1.3 9.1
United Kingdom -0.2 -1.6 -2.4 -0.8 4.1 1.3 8.6
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NA=data not available
(1) Rates of change based on the compound rate method.
(2) Data for years before 1991 pertain to the former West Germany.
(3) Adjusted for employment taxes and government subsidies to estimate the actual cost to employers.
(4) Value of foreign currency relative to the U.S. dollar.
-11-
Trade-weighted unit labor costs
BLS constructs indexes of U.S. unit labor cost trends relative to a
competitors' index, which is a trade-weighted average of unit labor
cost trends in the other economies, in order to take account of
differences in the relative importance of foreign economies to U.S.
trade in manufactured goods. Relative trade-weighted unit labor cost
indexes are calculated on both a national currency and a U.S. dollar
basis.
In this release, the relative U.S. trade-weighted indexes are
estimated against 14 economies for which comparable data are available
over the period of comparison. Australia has been omitted because unit
labor cost data are not available before 1990. The indexes underlying
this chart are shown in table C.
Chart 3 begins in 1979, a year in which U.S. manufacturing output
reached a business cycle peak.
PRINTED COPY CONTAINS CHART AT THIS POINT: Chart 3 U.S. manufacturing
unit labor cost relative to 14(1) other economies, 1979-2007
In the chart, the dotted line shows that, on a national currency
basis, U.S. unit labor costs tended to fall more or increase less than
unit labor costs in the other economies from 1979 until 1998. After
that, the year-to-year fluctuations do not follow a clear trend.
The solid line compares the unit labor costs on a U.S. dollar basis.
From 1979 to 1985, and again from 1995 to 2001, U.S. unit labor costs
on a U.S. dollar basis generally rose more or declined less than in the
other economies, due to the appreciation of the dollar. Since 2001,
relative U.S. unit labor costs declined with the weakening of the U.S.
dollar.
-12-
Table C. U.S. manufacturing unit labor
costs relative to 14(1) competitors, 1979-2007
----------------------------------------------------------------
Unit Labor Costs Unit Labor Costs
National Currency Basis U.S. Dollar Basis
Year Own Competitors' Own Competitors'
Index Index Ratio Index Index Ratio
----------------------------------------------------------------
1979 100.0 100.0 100.0 100.0 100.0 100.0
1980 112.7 111.3 101.3 112.7 109.9 102.6
1981 117.6 120.7 97.5 117.6 108.6 108.3
1982 127.4 131.1 97.2 127.4 108.2 117.8
1983 122.7 133.5 91.9 122.7 106.1 115.6
1984 123.8 133.4 92.8 123.8 99.5 124.4
1985 126.2 136.0 92.8 126.2 97.6 129.2
1986 130.1 141.5 91.9 130.1 117.0 111.2
1987 125.4 144.6 86.7 125.4 133.6 93.9
1988 126.4 147.4 85.8 126.4 146.0 86.6
1989 129.4 151.3 85.5 129.4 147.9 87.5
1990 133.3 157.9 84.4 133.3 161.1 82.7
1991 136.7 166.1 82.3 136.7 170.7 80.1
1992 137.8 169.6 81.3 137.8 175.2 78.7
1993 136.7 170.4 80.3 136.7 167.6 81.6
1994 134.1 167.8 79.9 134.1 164.7 81.4
1995 131.6 169.6 77.6 131.6 174.4 75.5
1996 129.0 171.4 75.3 129.0 170.4 75.7
1997 127.1 168.9 75.2 127.1 156.4 81.3
1998 125.7 169.9 74.0 125.7 146.3 86.0
1999 124.4 166.6 74.7 124.4 146.2 85.1
2000 126.1 162.2 77.8 126.1 137.7 91.6
2001 127.7 167.6 76.2 127.7 134.0 95.3
2002 123.8 168.1 73.7 123.8 135.9 91.1
2003 124.6 167.6 74.3 124.6 152.1 81.9
2004 119.9 165.9 72.3 119.9 162.7 73.7
2005 119.5 164.4 72.7 119.5 166.4 71.9
2006 121.9 164.1 74.3 121.9 169.8 71.7
2007 121.2 163.4 74.2 121.2 178.0 68.1
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(1) Australia has been omitted from this table because data are
not available before 1990.
Bureau of Labor Statistics
