Internet address: http://www.bls.gov USDL 08-0261
Technical information: (202) 691-5654 For Release: 10:00 A.M. EST
Media contact: (202) 691-5902 Thursday, February 28, 2008
INTERNATIONAL COMPARISONS OF MANUFACTURING PRODUCTIVITY AND UNIT
LABOR COST TRENDS 2006, REVISED
Manufacturing labor productivity increased in 2006 in 15 of
the 16 economies compared by the U.S. Department of Labor's Bureau
of Labor Statistics. (See chart 1.) The Republic of Korea had the
largest productivity increase of 10.8 percent, while Germany and
Taiwan followed with increases of 7.1 and 6.9 percent, respectively.
The United States productivity increase of 2.0 percent placed it
twelfth among the 16 economies compared, while Canada was the only
economy with a decline in productivity (-0.1 percent).
Over the 2000-2006 period, of the 16 economies studied, only
Korea, Sweden, and Taiwan had greater productivity growth than the
United States. Average annual growth rates for selected measures
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 hour, 2005-2006
-2-
Manufacturing unit labor costs, expressed in national currency
units, declined in nine of the economies and increased in seven. The
change for the United States was +0.5 percent. (See chart 2.)
However, expressed in U.S. dollars, unit labor costs declined in
six of the economies and increased in ten. Declines in the dollar's
exchange rate reversed the direction of movement in three countries.
The reversal was largest for Korea, from a decline (-3.6 percent) in
unit labor costs in national currency to an almost equivalent
increase in unit labor costs expressed in U.S. dollars. This
difference can be explained by the strong appreciation of the won
relative to the U.S. dollar.
PRINTED COPY CONTAINS CHART AT THIS POINT: Chart 2 Percent change in
manufacturing unit labor cost, 2005-2006
-3-
Table A. Output per hour, hourly compensation, unit labor costs, and related measures
Manufacturing, 16 countries or areas, 2005-2006
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 2.0 2.9 0.9 -0.5 1.4 3.4 2.5 0.5 0.5 --
Canada -0.1 -1.0 -0.9 -1.0 0.1 1.0 1.9 2.0 9.0 6.8
Australia 0.3 -1.3 -1.5 -1.2 -0.4 4.1 5.7 5.4 4.1 -1.2
Japan 1.9 4.3 2.4 1.5 0.8 0.9 -1.4 -3.2 -8.4 -5.3
Korea, Republic of 10.8 8.4 -2.1 -0.4 -1.7 4.5 6.8 -3.6 3.5 7.3
Taiwan 6.9 7.2 0.3 1.1 -0.8 2.5 2.1 -4.4 -5.6 -1.2
Belgium 2.2 2.7 0.5 -1.1 1.6 2.5 2.1 -0.1 0.8 0.9
Denmark 5.1 5.4 0.3 -0.2 0.5 3.4 3.1 -2.0 -1.1 0.9
France 3.7 1.6 -2.0 -2.0 0.0 0.5 2.6 -1.0 -0.1 0.9
Germany 7.1 5.8 -1.2 -0.9 -0.3 2.9 4.1 -2.8 -1.9 0.9
Italy 1.4 3.7 2.3 1.2 1.0 4.2 1.8 0.4 1.3 0.9
Netherlands 3.1 2.3 -0.8 -0.8 0.1 2.0 2.8 -0.3 0.6 0.9
Norway 3.3 4.4 1.0 1.1 -0.1 5.6 4.5 1.2 1.7 0.5
Spain 2.7 2.9 0.1 -0.2 0.4 3.2 3.0 0.3 1.2 0.9
Sweden 5.9 5.2 -0.7 -0.7 0.0 3.0 3.8 -2.0 -0.7 1.3
United Kingdom 4.5 1.4 -2.9 -2.6 -0.3 3.8 6.9 2.3 3.6 1.3
---------------------------------------------------------------------------------------------------------------
(1) Value of foreign currency relative to the U.S. dollar.
Additional data available
Annual indexes of these variables are estimated for the time
period 1950-2006 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 between 2 and 6 percent in
2006 in most of the compared economies. The United States increase
was at the lower end of this interval with a growth of 2.0 percent.
This was below the U.S. average annual increases during the previous
periods displayed in Table B. Korea led in manufacturing
productivity growth (+10.8 percent), followed by Germany and Taiwan.
Manufacturing productivity increased by only 0.3 percent in
Australia and by 1.4 percent in Italy, while Canada had a slight
decline in productivity. (See tables A and B.)
Manufacturing output increased in 14 of the 16 economies in 2006.
Korea and Taiwan were the leaders in the growth of output. In 2006,
growth in manufacturing output in Germany, Denmark and Norway was
noticeably higher than their average annual rates of increase over
the 1979-2006 period. The U.S. increase of 2.9 percent was almost
the same as its average annual increase since 1979.
While 14 of the economies had increases in output in 2006, 8
economies had reductions in total hours worked in manufacturing.
The United Kingdom had the greatest decline (-2.9 percent) in hours
in 2006, followed by Korea (-2.1 percent) and France (-2.0 percent).
Total hours worked increased in the United States by 0.9 percent,
and by over 2 percent in Japan and Italy.
For the period 2000-2006, total hours worked in manufacturing
declined for all 16 economies. The United Kingdom had the greatest
average annual decline of 4.4 percent, followed by the United
States, with an average annual decline of 3.2 percent.
Manufacturing employment declined in 12 of the 16 economies in
2006. The United Kingdom had the largest decline in employment
(-2.6 percent), while Japan had the greatest increase (+1.5 percent).
The United States was close to the middle of the range with a change
of -0.5 percent.
The United Kingdom and the United States experienced the steepest
average annual declines in manufacturing employment of 4.3 and 3.2
percent, respectively, for the 2000-2006 period.
Six of the sixteen economies experienced decreases in average
hours worked in 2006, eight registered increases, and two had no
change. This compares to 13 economies with declining average annual
manufacturing hours over the 2000-2006 period. Korea and Taiwan had
the greatest declines in average hours worked in 2006. Belgium had
the largest increase in average hours worked (+1.6 percent) and the
United States followed with a growth of 1.4 percent, which was
higher than the U.S. average annual increase during any previous
period displayed in Table B.
-5-
Manufacturing hourly compensation and unit labor costs
Total labor compensation in manufacturing increased in all 16
economies in 2006, from 0.5 percent in France to 5.6 percent in
Norway. For most, the increases were between 2 and 4 percent. U.S.
compensation rose by 3.4 percent, which was slightly below the
average annual increase since 1979. (See tables A and B.)
Hourly compensation in manufacturing increased in 15 of the 16
economies in 2006. The greatest increases were in the United
Kingdom (+6.9 percent) and Korea (+6.8 percent). Hourly
compensation decreased only in Japan in 2006. The U.S. increase of
2.5 percent in hourly compensation was substantially below its
average annual increase since 1979. (See tables A and B.)
Unit labor costs, expressed in national currencies, declined in
nine economies in 2006, and increased in seven. The largest
increase occurred in Australia (+5.4 percent) and the greatest
decline was in Taiwan (-4.4 percent). Unit labor costs in U.S.
manufacturing increased by 0.5 percent.
Expressed in U.S. dollars, manufacturing unit labor costs
increased in ten economies in 2006, and declined in six. The unit
labor costs of three economies, Korea, the Netherlands, and Belgium,
went from decreases to increases when computed on a U.S. dollar
basis. This reversal happened because of the appreciation of their
currencies versus the dollar. Korea, with the greatest currency
appreciation, experienced the greatest reversal, from -3.6 to +3.5
percent.
Movements in exchange rates often are the dominant force behind
changes in comparative unit labor costs and international
competitiveness. In 2006, the U.S. dollar weakened against most of
the currencies being compared. The only exceptions were Japan,
Australia, and Taiwan, where the currencies depreciated against the
dollar. This depreciation of the U.S. dollar against most
currencies continues a trend that began after 2000. In 2006, the
dollar fell by 0.9 percent against the euro, following a decline of
0.1 percent in 2005.
-6-
Table B. Output per hour, hourly compensation, unit labor costs, and related measures
Manufacturing, 16 countries or areas, 1979-2006
Average annual rates of change(1)
--------------------------------------------------------------------------------------------------------
Country or area 1979-2006 1979-1990 1990-1995 1995-2000 2000-2006 2004-2005 2005-2006
--------------------------------------------------------------------------------------------------------
Output per hour
United States r3.9 2.8 3.7 5.5 r4.6 r2.2 r2.0
Canada r2.4 2.1 3.4 3.8 r0.8 r3.8 r-0.1
Australia 2.9 2.9 2.9 3.8 2.0 1.0 0.3
Japan r3.7 3.8 3.3 3.4 r3.9 r6.5 r1.9
Korea, Republic of NA NA 9.4 10.8 7.4 6.8 10.8
Taiwan 5.7 6.1 4.7 5.6 6.0 7.2 6.9
Belgium r3.5 4.2 3.1 r3.0 2.8 r3.1 r2.2
Denmark 2.4 2.2 2.7 1.8 r2.8 r1.1 r5.1
France 3.8 3.6 3.8 4.6 3.4 4.3 3.7
Germany (2) 2.9 2.1 2.9 3.7 r3.6 r3.7 r7.1
Italy 1.7 2.8 2.7 0.9 -0.6 -0.1 1.4
Netherlands r3.3 r3.2 3.7 3.3 3.1 3.5 3.1
Norway 2.0 1.9 0.1 1.4 r4.5 r3.5 3.3
Spain 2.5 3.3 3.1 0.8 r1.9 r1.6 r2.7
Sweden r4.5 r2.1 r5.5 r6.8 r6.4 6.2 r5.9
United Kingdom 3.6 4.1 3.1 2.2 4.4 3.6 4.5
Output
United States r2.8 2.2 3.6 5.4 r1.2 r1.0 r2.9
Canada 2.2 1.9 2.2 6.2 r-0.2 r1.6 r-1.0
Australia 1.4 1.6 0.8 2.6 0.7 0.2 -1.3
Japan r2.7 4.7 0.4 1.2 r2.2 r5.2 r4.3
Korea, Republic of 8.9 10.7 8.2 7.9 6.9 7.1 8.4
Taiwan 6.0 7.4 4.4 5.8 4.9 6.6 7.2
Belgium r1.8 2.6 0.6 r2.9 r0.7 r-0.2 r2.7
Denmark r1.1 1.3 2.1 1.7 r-0.3 r-3.1 r5.4
France 1.6 1.3 0.9 3.5 1.1 1.3 1.6
Germany (2) r1.1 1.2 -1.0 2.2 r1.8 r1.4 r5.8
Italy 1.3 2.6 1.6 0.7 -0.8 -2.5 3.7
Netherlands 2.1 2.4 2.0 3.3 0.7 0.0 2.3
Norway 0.8 -0.5 0.7 1.4 r2.7 r4.5 r4.4
Spain 2.2 2.1 0.6 5.0 r1.5 r1.0 r2.9
Sweden 3.8 r1.7 3.8 7.4 r4.6 r4.6 r5.2
United Kingdom 0.6 0.9 0.5 1.3 -0.3 -1.2 r1.4
--------------------------------------------------------------------------------------------------------
Continued on next page
-7-
Table B. Output per hour, hourly compensation, unit labor costs, and related measures
Manufacturing, 16 countries or areas, 1979-2006
Average annual rates of change(1)
--------------------------------------------------------------------------------------------------------
Country or area 1979-2006 1979-1990 1990-1995 1995-2000 2000-2006 2004-2005 2005-2006
--------------------------------------------------------------------------------------------------------
Total hours
United States -1.0 -0.6 -0.1 -0.1 -3.2 -1.2 0.9
Canada -0.1 -0.2 -1.2 2.3 r-1.0 r-2.1 r-0.9
Australia -1.4 -1.3 -2.0 -1.2 -1.2 -0.8 -1.5
Japan -1.0 0.8 -2.8 r-2.1 r-1.7 -1.3 r2.4
Korea, Republic of NA NA -1.1 -2.6 -0.5 0.2 -2.1
Taiwan 0.2 1.2 -0.3 0.1 -1.0 -0.6 0.3
Belgium -1.6 -1.6 -2.4 -0.1 -2.1 -3.2 0.5
Denmark r-1.2 -1.0 -0.7 -0.1 r-3.0 r-4.2 r0.3
France -2.1 -2.2 -2.8 -1.1 -2.2 -2.8 -2.0
Germany (2) -1.7 -0.9 -3.8 -1.4 -1.7 -2.2 r-1.2
Italy -0.4 -0.2 -1.0 -0.2 -0.2 -2.4 2.3
Netherlands -1.2 r-0.9 -1.7 0.0 -2.3 -3.3 -0.8
Norway -1.2 -2.3 0.6 0.0 r-1.7 r1.0 r1.0
Spain -0.3 -1.2 -2.4 4.1 r-0.4 r-0.6 r0.1
Sweden r-0.7 r-0.4 r-1.7 r0.5 r-1.7 r-1.5 r-0.7
United Kingdom -2.9 -3.1 -2.6 -0.9 r-4.4 -4.6 r-2.9
Employment
United States -1.1 -0.8 -0.5 0.0 -3.2 -0.6 -0.5
Canada -0.2 -0.3 -1.5 2.2 r-0.9 r-1.1 r-1.0
Australia -1.4 -1.3 -2.3 -1.1 -1.1 -1.7 -1.2
Japan -0.7 1.0 -1.6 -2.0 -1.9 -0.8 r1.5
Korea, Republic of NA NA -0.8 -2.5 0.6 0.9 -0.4
Taiwan 0.8 2.0 -0.3 0.4 0.0 0.4 1.1
Belgium -1.5 -1.6 -2.2 -0.6 r-1.7 r-1.2 r-1.1
Denmark -1.1 -0.4 -1.2 -1.2 r-2.4 r-2.5 r-0.2
France -1.6 -1.7 -2.5 -0.3 -1.8 -2.6 -2.0
Germany (2) -1.3 -0.1 -4.2 -0.8 -1.4 -1.7 r-0.9
Italy -0.7 -0.8 -1.9 -0.2 0.0 -1.7 1.2
Netherlands r-1.0 r-0.6 -1.6 0.1 -2.2 -3.0 -0.8
Norway -1.2 -2.2 0.4 0.2 r-1.9 r0.1 r1.1
Spain 0.1 -0.7 -2.0 3.3 r0.7 1.0 r-0.2
Sweden -1.4 -1.0 -3.5 r0.2 r-1.8 r-1.1 -0.7
United Kingdom -2.8 -2.9 -2.4 -1.4 -4.3 -4.5 -2.6
--------------------------------------------------------------------------------------------------------
Continued on next page
-8-
Table B. Output per hour, hourly compensation, unit labor costs, and related measures
Manufacturing, 16 countries or areas, 1979-2006
Average annual rates of change(1)
--------------------------------------------------------------------------------------------------------
Country or area 1979-2006 1979-1990 1990-1995 1995-2000 2000-2006 2004-2005 2005-2006
--------------------------------------------------------------------------------------------------------
Average hours
United States 0.1 0.2 0.4 -0.1 -0.1 -0.6 1.4
Canada 0.1 0.1 0.3 0.1 r-0.1 r-1.1 0.1
Australia 0.0 0.0 0.3 -0.1 -0.1 0.9 -0.4
Japan -0.3 -0.2 -1.3 r-0.1 0.2 -0.5 0.8
Korea, Republic of NA NA -0.2 -0.1 -1.1 -0.6 -1.7
Taiwan -0.6 -0.8 0.0 -0.3 -1.0 -1.0 -0.8
Belgium r0.0 0.0 -0.2 0.5 r-0.4 r-2.1 r1.6
Denmark r-0.1 -0.5 0.6 1.1 r-0.7 r-1.8 r0.5
France -0.5 -0.5 -0.3 -0.8 -0.4 -0.2 0.0
Germany (2) -0.4 -0.9 0.4 -0.6 r-0.3 r-0.6 r-0.3
Italy 0.4 0.6 0.9 0.0 -0.2 -0.7 1.0
Netherlands -0.1 -0.2 0.0 -0.1 -0.1 -0.4 0.1
Norway 0.0 -0.1 0.2 -0.2 r0.2 r0.9 r-0.1
Spain -0.4 -0.5 -0.4 0.8 r-1.1 r-1.6 r0.4
Sweden r0.7 r0.7 r1.9 r0.3 r0.0 r-0.4 0.0
United Kingdom -0.1 -0.2 -0.1 0.5 -0.2 -0.1 r-0.3
Total labor compensation(3): National currency basis
United States 3.6 4.9 3.4 4.5 0.8 3.0 3.4
Canada r4.6 6.5 2.4 5.2 r2.3 r2.6 r1.0
Australia NA NA 3.2 3.1 r4.2 r5.2 r4.1
Japan r1.8 5.5 0.7 -1.0 r-1.6 r-0.4 r0.9
Korea, Republic of 13.7 19.6 17.6 5.4 7.3 8.2 4.5
Taiwan 7.5 13.5 6.8 3.6 1.1 3.7 2.5
Belgium 2.7 4.4 1.3 1.9 r1.2 r0.2 r2.5
Denmark r4.2 7.0 2.3 2.8 r1.7 r2.4 r3.4
France 3.6 7.3 1.7 1.7 0.3 -3.4 0.5
Germany (2) r2.7 4.6 2.4 1.6 r0.5 -1.1 r2.9
Italy 6.4 11.4 3.9 2.6 2.7 0.5 4.2
Netherlands r2.8 r3.2 2.7 3.4 1.5 -1.4 2.0
Norway 5.0 6.4 4.1 5.1 r3.0 r5.8 r5.6
Spain 6.9 10.1 5.5 5.6 3.3 r3.3 r3.2
Sweden r5.4 r8.8 r1.9 5.3 r2.3 r1.9 r3.0
United Kingdom 3.9 7.1 1.5 3.3 0.8 r-0.4 r3.8
--------------------------------------------------------------------------------------------------------
Continued on next page
-9-
Table B. Output per hour, hourly compensation, unit labor costs, and related measures
Manufacturing, 16 countries or areas, 1979-2006
Average annual rates of change(1)
--------------------------------------------------------------------------------------------------------
Country or area 1979-2006 1979-1990 1990-1995 1995-2000 2000-2006 2004-2005 2005-2006
--------------------------------------------------------------------------------------------------------
Hourly compensation(3): National currency basis
United States 4.7 5.5 3.5 4.7 4.2 4.2 2.5
Canada r4.7 6.8 3.6 2.9 r3.3 r4.9 r1.9
Australia NA NA 5.4 4.3 r5.4 r6.1 r5.7
Japan 2.8 4.6 3.6 1.2 r0.0 r0.8 r-1.4
Korea, Republic of NA NA 18.9 8.1 7.8 8.0 6.8
Taiwan 7.3 12.1 7.1 3.4 2.1 4.4 2.1
Belgium 4.3 6.1 3.8 2.0 r3.4 r3.5 2.1
Denmark r5.4 8.1 2.9 2.9 r4.9 r6.9 r3.1
France 5.9 9.8 4.6 2.8 2.5 -0.6 2.6
Germany (2) r4.5 5.6 6.4 3.1 r2.3 r1.2 r4.1
Italy 6.8 11.6 5.0 2.8 2.9 3.0 1.8
Netherlands 4.0 4.1 4.5 3.4 3.9 2.0 2.8
Norway r6.3 9.0 3.4 5.2 r4.8 r4.7 r4.5
Spain 7.2 11.4 8.2 1.4 r3.7 r3.9 r3.0
Sweden 6.2 9.1 r3.7 r4.8 r4.1 r3.4 r3.8
United Kingdom 7.0 10.6 4.2 4.2 5.5 r4.4 r6.9
Unit labor costs(3): National currency basis
United States r0.8 2.6 -0.2 -0.8 r-0.4 r1.9 r0.5
Canada r2.3 4.6 0.3 -0.9 r2.4 r1.0 r2.0
Australia NA NA 2.4 0.5 r3.4 r5.1 r5.4
Japan r-0.9 0.8 0.3 -2.2 r-3.7 r-5.4 r-3.2
Korea, Republic of 4.4 8.1 8.7 -2.4 0.4 1.1 -3.6
Taiwan 1.5 5.6 2.3 -2.1 -3.6 -2.7 -4.4
Belgium r0.8 1.8 0.7 r-0.9 r0.6 r0.4 r-0.1
Denmark r3.0 5.7 0.2 1.1 r2.1 r5.7 r-2.0
France 2.0 5.9 0.7 -1.7 -0.8 -4.7 -1.0
Germany (2) r1.6 3.3 3.4 -0.5 r-1.3 r-2.5 r-2.8
Italy 5.0 8.5 2.3 1.9 3.6 3.1 0.4
Netherlands 0.6 r0.8 0.7 0.1 0.7 -1.4 -0.3
Norway 4.2 6.9 r3.3 3.7 0.3 r1.2 1.2
Spain 4.6 7.8 4.9 0.5 r1.8 r2.3 r0.3
Sweden r1.6 r6.9 r-1.8 -1.9 r-2.2 r-2.6 r-2.0
United Kingdom 3.3 6.2 1.0 2.0 r1.1 r0.8 r2.3
--------------------------------------------------------------------------------------------------------
Continued on next page
-10-
Table B. Output per hour, hourly compensation, unit labor costs, and related measures
Manufacturing, 16 countries or areas, 1979-2006
Average annual rates of change(1)
--------------------------------------------------------------------------------------------------------
Country or area 1979-2006 1979-1990 1990-1995 1995-2000 2000-2006 2004-2005 2005-2006
--------------------------------------------------------------------------------------------------------
Unit labor costs(3): U.S. dollar basis
United States r0.8 2.6 -0.2 -0.8 r-0.4 r1.9 r0.5
Canada 2.4 4.6 -2.9 -2.4 r7.2 r8.5 r9.0
Australia NA NA 1.3 -4.2 r8.0 r8.8 r4.1
Japan r1.5 4.6 9.4 -4.8 r-4.9 r-7.0 r-8.4
Korea, Republic of 1.8 4.4 6.9 -9.5 3.2 13.1 3.5
Taiwan 1.8 8.5 2.7 -5.3 -4.2 1.1 -5.6
Belgium r0.5 0.6 3.3 r-8.4 r5.9 r0.5 r0.8
Denmark r2.5 4.1 2.2 -6.1 r7.5 r5.6 r-1.1
France 1.2 3.6 2.5 -8.4 4.4 -4.6 -0.1
Germany (2) r2.2 4.5 5.9 -8.0 r3.9 r-2.4 r-1.9
Italy 2.6 5.0 -3.8 -3.1 9.0 3.2 1.3
Netherlands 1.1 r1.7 3.3 -7.6 6.0 -1.3 0.6
Norway 3.3 4.9 3.1 -2.9 r5.7 r5.9 1.7
Spain 2.0 3.8 0.8 -6.6 r7.2 r2.4 r1.2
Sweden r-0.4 r3.8 r-5.4 -6.7 r1.5 r-4.2 r-0.7
United Kingdom 2.7 4.5 -1.4 1.1 4.4 r0.1 r3.6
Exchange rates(4)
United States -- -- -- -- -- -- --
Canada 0.1 0.0 -3.2 -1.6 4.6 7.4 6.8
Australia -1.5 -3.2 -1.1 -4.7 4.4 3.6 -1.2
Japan 2.4 3.8 9.1 -2.7 -1.3 -1.8 -5.3
Korea, Republic of -2.5 -3.4 -1.7 -7.3 2.9 11.9 7.3
Taiwan 0.4 2.7 0.3 -3.3 -0.6 3.9 -1.2
Belgium -0.3 -1.2 2.5 -7.6 5.3 0.1 0.9
Denmark -0.5 -1.5 2.0 -7.1 5.3 -0.1 0.9
France -0.8 -2.2 1.8 -6.8 5.3 0.1 0.9
Germany (2) 0.6 1.1 2.5 -7.5 5.3 0.1 0.9
Italy -2.3 -3.3 -6.0 -4.9 5.3 0.1 0.9
Netherlands 0.5 0.9 2.6 -7.6 5.3 0.1 0.9
Norway -0.9 -1.9 -0.3 -6.4 5.5 4.6 0.5
Spain -2.5 -3.7 -3.9 -7.1 5.3 0.1 0.9
Sweden -2.0 -2.9 -3.7 -4.9 3.7 -1.6 1.3
United Kingdom -0.5 -1.6 -2.4 -0.8 3.3 -0.7 1.3
--------------------------------------------------------------------------------------------------------
r=revised 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 trade-weighted average of unit labor cost trends in the other
economies 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; 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, 1979-2006
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 throughout this period.
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, 1979-2006
----------------------------------------------------------------
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 112.7 111.4 101.2 112.7 109.9 102.6
1981 117.6 120.8 97.4 117.6 108.8 108.1
1982 127.4 131.3 97.0 127.4 108.5 117.5
1983 122.7 133.8 91.7 122.7 106.6 115.1
1984 123.8 133.8 92.5 123.8 100.1 123.7
1985 126.2 136.3 92.6 126.2 98.1 128.6
1986 130.1 141.8 91.7 130.1 117.5 110.7
1987 125.4 145.0 86.5 125.4 134.2 93.4
1988 126.4 147.8 85.6 126.4 146.8 86.1
1989 129.4 151.7 85.2 129.4 148.7 87.0
1990 133.2 158.3 84.1 133.2 161.9 82.3
1991 136.7 166.6 82.1 136.7 171.6 79.7
1992 137.8 170.1 81.0 137.8 176.1 78.2
1993 136.7 170.9 80.0 136.7 168.7 81.0
1994 134.1 168.3 79.7 134.1 165.8 80.9
1995 131.6 170.0 77.4 131.6 175.3 75.1
1996 129.1 171.8 75.1 129.1 171.2 75.4
1997 127.1 169.4 75.0 127.1 157.2 80.8
1998 125.7 170.4 73.8 125.7 146.9 85.6
1999 124.4 167.0 74.5 124.4 147.0 84.6
2000 126.2 162.6 77.6 126.2 138.6 91.0
2001 127.7 168.2 75.9 127.7 134.9 94.7
2002 123.9 168.6 73.5 123.9 136.6 90.6
2003 124.7 168.1 74.2 124.7 153.0 81.5
2004 120.1 166.6 72.1 120.1 163.7 73.3
2005 122.4 165.0 74.2 122.4 167.4 73.1
2006 123.0 164.2 74.9 123.0 170.3 72.2
----------------------------------------------------------------
(1) Australia has been omitted from this table because data are
not available before 1990.
Bureau of Labor Statistics
