For release 10:00 a.m. (EDT) Thursday, October 22, 2009 USDL-09-1271
Technical Information: (202) 691-5654 ilchelp@bls.gov www.bls.gov/ilc
Media Contact: (202) 691-5902 PressOffice@bls.gov
INTERNATIONAL COMPARISONS OF MANUFACTURING PRODUCTIVITY AND
UNIT LABOR COST TRENDS, 2008
Manufacturing labor productivity decreased in 2008 in 12 of the 17 economies compared by the
U.S. Department of Labor’s Bureau of Labor Statistics. The Republic of Korea and the United
States had the largest productivity increases (1.2 percent each) among the five economies where
productivity increased. Singapore had the steepest productivity decline (-6.6 percent). (See
chart 1.)
For all economies, labor productivity in manufacturing increased less or declined more in 2008
than the average annual changes over the 2000-2008 period, when almost all of the economies
studied experienced productivity increases. 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 hour, 2007-2008
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Changes in unit labor costs can be expressed either in national currency units or in U.S. dollars.
Expressed in national currency units, manufacturing unit labor costs increased in all 17
economies in 2008. The increase for the United States and for Taiwan (+1.7 percent) was the
second lowest among the economies compared. Expressed in U.S. dollars, manufacturing unit
labor costs increased even more in 14 of the economies, because of the weakening dollar. The
U.S. manufacturing sector improved its labor cost competitiveness in 2008 against all economies
compared except the Republic of Korea and the United Kingdom, where unit labor cost
expressed in U.S. dollars declined, because their currencies weakened against the dollar. (See
chart 2.)
PRINTED COPY CONTAINS CHART AT THIS POINT:
Chart 2. Percent change in manufacturing unit labor costs, 2007-2008
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Table A. Output per hour, hourly compensation, unit labor costs, and related measures
Manufacturing, 17 countries or areas, 2007-2008
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 1.2 -2.7 -3.9 -3.4 -0.5 -1.0 3.0 1.7 1.7 --
Canada -2.6 -5.7 -3.2 -2.6 -0.6 -1.1 2.1 4.8 5.6 0.7
Australia -0.9 1.6 2.6 1.5 1.1 5.3 2.7 3.6 5.4 1.7
Japan -0.2 -3.4 -3.2 -1.8 -1.4 -1.4 1.8 2.0 16.2 13.9
Korea, Republic of 1.2 3.1 1.8 -0.3 2.2 3.9 2.0 0.8 -14.8 -15.4
Singapore -6.6 -4.1 2.6 3.4 -0.8 3.1 0.5 7.5 14.6 6.5
Taiwan -0.5 -1.1 -0.6 0.8 -1.4 0.7 1.3 1.7 6.0 4.2
Belgium 0.5 -0.5 -1.0 -0.3 -0.7 1.9 3.0 2.4 10.0 7.4
Denmark -4.5 -1.8 2.7 1.7 1.1 6.3 3.4 8.3 15.8 6.9
France -0.8 -2.4 -1.5 -1.5 0.0 1.4 3.0 3.8 11.5 7.4
Germany -0.1 0.6 0.7 1.6 -0.9 3.3 2.5 2.7 10.3 7.4
Italy -3.4 -4.5 -1.2 -1.2 0.0 1.4 2.6 6.2 14.1 7.4
Netherlands -1.4 -0.6 0.8 0.5 0.3 4.0 3.3 4.7 12.4 7.4
Norway 0.7 3.0 2.3 2.5 -0.2 8.0 5.6 4.9 9.0 3.9
Spain -0.9 -2.1 -1.2 -0.5 -0.7 3.6 4.8 5.8 13.6 7.4
Sweden -3.7 -3.5 0.2 -0.5 0.7 3.2 3.0 6.9 9.7 2.6
United Kingdom 0.3 -2.8 -3.1 -2.9 -0.2 -0.7 2.5 2.2 -5.3 -7.4
_________________________________________________________________________________________________________________________
(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 1950-2008
and are available at http://www.bls.gov/ilc/. However, for analytical purposes, the international
comparisons in this release go back to 1979.
For further information, contact the Division of International Labor Comparisons (ILC), in the
Office of Productivity and Technology by phone at 202-691-5654, by e-mail at
ilchelp@bls.gov, or by mail at Bureau of Labor Statistics, 2 Massachusetts Avenue, NE, Room
2150, Washington, DC 20212.
Subscribe to ILC's e-newsletter Just Out! by e-mailing ILCpr@bls.gov with "subscribe" in the
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usually occur once or twice per month.
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Manufacturing productivity, output, and labor input
In 2008 manufacturing productivity decreased in almost all of the 17 economies compared, in
contrast to past years and periods, when most economies registered productivity increases.
Singapore (-6.6 percent) and Denmark (-4.5 percent) experienced the largest productivity
declines in 2008. The Republic of Korea and the United States led productivity growth in 2008
with slight increases of 1.2 percent each, but below the average annual increases for both
countries for all the periods shown in the accompanying tables. (See tables A and B.)
Manufacturing output decreased in 13 of the 17 economies in 2008. The declines ranged
between -0.5 percent in Belgium to -5.7 percent in Canada. The U.S. output decline of 2.7
percent was in the middle of this range. Among the four countries with output growth in 2008,
the Korean increase of 3.1 percent was the largest; however, this was less than the average
annual increases in Korean manufacturing output for all previous periods shown in the
accompanying tables. (See tables A and B.)
For most economies, declines in 2008 manufacturing output were accompanied by declines in
employment, as well as by declines in average hours worked.
In 2008 manufacturing employment decreased in 10 of the 17 economies. The United States
had the largest decline in employment (-3.4 percent), while Singapore had the largest increase in
employment (+3.4 percent). Over the 2000-2008 period, the United Kingdom and the United
States experienced the steepest average annual declines in manufacturing employment (-3.9 and
-3.0 percent respectively).
In 2008 average hours worked in manufacturing declined in 10 of the 17 economies and
increased in 5, while France and Italy showed no change in average hours worked. Average
hours worked fell 0.5 percent in U.S. manufacturing.
In 2008 total manufacturing hours worked fell in 9, and increased in 8 of the 17 economies
compared. The greatest decline in total hours worked, -3.9 percent, occurred in U.S.
manufacturing, and the largest increase, +2.7 percent, was in Denmark. This contrasts with the
average annual changes over the 2000-2008 period, when total hours worked in manufacturing
declined in most of the 17 economies. Singapore (+3.6 percent) and Norway (+0.2 percent)
were the only two countries that experienced growth in total manufacturing hours worked over
the 2000-2008 period.
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Manufacturing hourly compensation and unit labor costs
Total labor compensation in manufacturing increased in 13 of the 17 economies in 2008. The
largest increases were in Norway (+8.0 percent) and Denmark (+6.3 percent). U. S.
compensation dropped by 1.0 percent. Total labor compensation in manufacturing also declined
in Japan, Canada, and the United Kingdom. (See tables A and B.)
Hourly compensation in manufacturing increased in 2008 in all 17 economies. The largest
increase was in Norway (+5.6 percent), followed by Spain (+4.8 percent). The U.S. increase of
3.0 percent in hourly compensation was below its average annual increase since 1979. The 2008
increases in hourly compensation were smaller than the average annual increases for all
economies during the 1979-2008 period, for which comparable data are available. (See tables A
and B.)
Expressed in national currencies, unit labor costs also increased in all 17 economies in 2008. The
largest increase occurred in Denmark (+8.3 percent). U.S. and Taiwanese manufacturing had the
second smallest increase (+1.7 percent each) among the economies compared. However, for the
United States this increase was larger than the average annual increases in unit labor costs
between 1979 and 2008. For most economies, the 2008 increases in unit labor costs were also
larger than their average annual increases during the 1979-2008 period.
Movements in exchange rates are often the dominant force behind changes in comparative unit
labor costs and international competitiveness. In 2008, the U.S. dollar weakened against most
of the currencies being compared. The exceptions were the currencies of Korea and the United
Kingdom, which depreciated against the dollar. This depreciation of the U.S. dollar against
most currencies continues a trend that began in 2001.
As a result of these changes in exchange rates, manufacturing unit labor costs expressed in U.S.
dollars increased even more in 14 of the economies, while declining in 2 in 2008. The unit labor
costs of two countries, Korea and the United Kingdom, went from increases to decreases when
computed on a U.S. dollar basis. Thus, the manufacturing sector in the United States improved
its unit labor cost competitiveness in 2008 against all economies compared except Korea and the
United Kingdom.
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Table B. Output per hour, hourly compensation, unit labor costs, and related measures
Manufacturing, 17 countries or areas, 1979-2008
Average annual rates of change(1)
_________________________________________________________________________________________________________________________
Country or area 1979-2008 1979-1990 1990-1995 1995-2000 2000-2008 2006-2007 2007-2008
_________________________________________________________________________________________________________________________
Output per hour
United States 3.9 2.8 3.7 5.6 4.6 4.7 1.2
Canada 2.3 2.1 3.4 3.8 0.8 2.7 -2.6
Australia 2.1 2.3 1.3 3.4 1.6 1.9 -0.9
Japan 3.5 3.8 3.3 3.4 3.2 3.5 -0.2
Korea, Republic of NA NA 9.4 10.8 7.4 7.6 1.2
Singapore NA NA 6.9 6.5 0.7 -3.8 -6.6
Taiwan 5.6 6.2 4.7 5.5 5.2 8.9 -0.5
Belgium 3.3 4.2 3.1 2.4 2.8 4.4 0.5
Denmark 2.1 2.2 2.7 1.8 1.8 0.4 -4.5
France 3.5 3.8 3.4 4.6 2.6 1.2 -0.8
Germany(2) 3.0 2.1 2.9 3.7 3.7 5.0 -0.1
Italy 2.1 3.4 3.8 1.4 -0.2 0.5 -3.4
Netherlands 3.2 3.3 3.7 3.3 2.7 2.7 -1.4
Norway 1.7 1.9 0.1 1.4 2.7 -0.2 0.7
Spain 2.4 3.3 3.1 0.8 1.5 2.4 -0.9
Sweden 4.2 2.1 5.5 6.8 4.8 0.6 -3.7
United Kingdom 3.4 4.1 2.4 2.7 3.6 3.3 0.3
Output
United States 2.7 2.2 3.6 5.4 1.2 2.9 -2.7
Canada 1.9 1.9 2.2 6.2 -0.9 -0.9 -5.7
Australia 1.5 1.6 0.8 2.6 1.1 3.3 1.6
Japan 2.5 4.7 0.6 1.1 1.5 3.6 -3.4
Korea, Republic of 8.6 10.7 8.2 7.9 6.3 7.2 3.1
Singapore NA NA 8.0 6.7 4.3 5.9 -4.1
Taiwan 5.9 7.4 4.4 5.8 4.8 10.4 -1.1
Belgium 1.7 2.6 0.6 2.3 0.8 2.6 -0.5
Denmark 1.2 1.3 2.1 1.7 0.3 3.6 -1.8
France 1.4 1.5 0.6 3.4 0.5 0.8 -2.4
Germany(2) 1.4 1.2 -1.0 2.2 2.6 6.1 0.6
Italy 1.4 2.6 1.6 1.2 -0.4 2.0 -4.5
Netherlands 2.2 2.4 2.0 3.3 1.3 3.2 -0.6
Norway 1.0 -0.5 0.7 1.4 2.9 5.3 3.0
Spain 2.0 2.1 0.6 5.0 0.8 0.9 -2.1
Sweden 3.5 1.7 3.8 7.4 3.6 2.3 -3.5
United Kingdom 0.6 0.9 0.4 1.3 -0.3 0.6 -2.8
Continued on next page
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Table B. Output per hour, hourly compensation, unit labor costs, and related measures
Manufacturing, 17 countries or areas, 1979-2008
Average annual rates of change(1)
_________________________________________________________________________________________________________________________
Country or area 1979-2008 1979-1990 1990-1995 1995-2000 2000-2008 2006-2007 2007-2008
_________________________________________________________________________________________________________________________
Total hours
United States -1.2 -0.6 -0.1 -0.1 -3.2 -1.8 -3.9
Canada -0.4 -0.2 -1.1 2.3 -1.7 -3.5 -3.2
Australia -0.6 -0.7 -0.5 -0.9 -0.4 1.3 2.6
Japan -1.0 0.9 -2.7 -2.2 -1.6 0.2 -3.2
Korea, Republic of NA NA -1.1 -2.6 -0.9 -0.4 1.8
Singapore NA NA 1.0 0.2 3.6 10.2 2.6
Taiwan 0.3 1.2 -0.3 0.2 -0.4 1.3 -0.6
Belgium -1.6 -1.6 -2.4 -0.1 -2.0 -1.7 -1.0
Denmark -0.9 -1.0 -0.7 -0.1 -1.5 3.3 2.7
France -2.1 -2.2 -2.8 -1.1 -2.0 -0.5 -1.5
Germany(2) -1.5 -0.9 -3.8 -1.4 -1.1 1.0 0.7
Italy -0.8 -0.8 -2.1 -0.2 -0.2 1.5 -1.2
Netherlands -1.0 -0.9 -1.7 0.0 -1.4 0.5 0.8
Norway -0.7 -2.3 0.6 0.0 0.2 5.5 2.3
Spain -0.4 -1.2 -2.4 4.1 -0.7 -1.4 -1.2
Sweden -0.7 -0.4 -1.7 0.5 -1.1 1.8 0.2
United Kingdom -2.8 -3.1 -1.9 -1.3 -3.8 -2.7 -3.1
Employment
United States -1.3 -0.8 -0.5 0.0 -3.0 -1.7 -3.4
Canada -0.4 -0.3 -1.5 2.2 -1.6 -3.4 -2.6
Australia -1.2 -1.3 -2.3 -1.1 -0.4 1.8 1.5
Japan -0.7 1.0 -1.4 -2.1 -1.6 0.5 -1.8
Korea, Republic of NA NA -0.8 -2.5 0.4 0.0 -0.3
Singapore NA NA 0.7 -0.1 3.5 9.9 3.4
Taiwan 0.9 2.0 -0.3 0.5 0.5 1.4 0.8
Belgium -1.5 -1.6 -2.2 -0.6 -1.4 -0.9 -0.3
Denmark -0.9 -0.4 -1.2 -1.2 -1.3 1.8 1.7
France -1.6 -1.8 -2.5 -0.3 -1.8 -1.4 -1.5
Germany(2) -1.1 -0.1 -4.2 -0.8 -0.7 1.2 1.6
Italy -0.7 -0.8 -1.9 -0.2 0.0 0.7 -1.2
Netherlands -0.9 -0.6 -1.6 0.1 -1.4 0.4 0.5
Norway -0.8 -2.2 0.4 0.2 0.0 5.0 2.5
Spain 0.1 -0.7 -2.0 3.3 0.4 -0.6 -0.5
Sweden -1.3 -1.0 -3.5 0.2 -1.3 0.6 -0.5
United Kingdom -2.8 -2.9 -2.7 -1.2 -3.9 -3.2 -2.9
Continued on next page
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Table B. Output per hour, hourly compensation, unit labor costs, and related measures
Manufacturing, 17 countries or areas, 1979-2008
Average annual rates of change(1)
_________________________________________________________________________________________________________________________
Country or area 1979-2008 1979-1990 1990-1995 1995-2000 2000-2008 2006-2007 2007-2008
_________________________________________________________________________________________________________________________
Average hours
United States 0.1 0.2 0.4 -0.1 -0.1 -0.1 -0.5
Canada 0.1 0.1 0.3 0.1 -0.2 -0.1 -0.6
Australia 0.6 0.6 1.9 0.3 0.0 -0.5 1.1
Japan -0.3 -0.1 -1.3 -0.1 0.0 -0.4 -1.4
Korea, Republic of NA NA -0.2 -0.1 -1.3 -0.4 2.2
Singapore NA NA 0.3 0.3 0.1 0.2 -0.8
Taiwan -0.6 -0.8 0.0 -0.3 -0.9 0.0 -1.4
Belgium -0.1 0.0 -0.2 0.5 -0.6 -0.8 -0.7
Denmark 0.0 -0.5 0.6 1.1 -0.1 1.4 1.1
France -0.4 -0.5 -0.3 -0.8 -0.3 1.0 0.0
Germany(2) -0.5 -0.9 0.4 -0.6 -0.4 -0.2 -0.9
Italy -0.1 0.1 -0.2 0.0 -0.2 0.8 0.0
Netherlands -0.1 -0.2 0.0 -0.1 0.0 0.1 0.3
Norway 0.0 -0.1 0.2 -0.2 0.2 0.5 -0.2
Spain -0.4 -0.5 -0.4 0.8 -1.1 -0.8 -0.7
Sweden 0.7 0.7 1.9 0.3 0.2 1.2 0.7
United Kingdom 0.1 -0.2 0.8 -0.1 0.1 0.5 -0.2
Total labor compensation(3): National currency basis
United States 3.3 4.9 3.3 4.3 0.5 2.5 -1.0
Canada 4.2 6.5 2.4 5.2 1.6 -0.1 -1.1
Australia NA NA 3.2 3.1 4.7 6.6 5.3
Japan 1.6 5.5 0.8 -1.1 -1.4 -0.1 -1.4
Korea, Republic of 13.4 19.6 17.6 5.8 7.8 6.0 3.9
Singapore NA NA 8.7 2.4 4.2 9.3 3.1
Taiwan 7.2 13.5 6.8 3.6 1.6 4.6 0.7
Belgium 2.7 4.4 1.3 1.9 1.6 3.5 1.9
Denmark 4.4 7.0 2.3 2.8 3.0 5.9 6.3
France 3.4 6.7 1.6 1.7 1.3 2.3 1.4
Germany(2) 2.7 4.6 2.4 1.6 1.2 2.8 3.3
Italy 6.2 11.6 3.9 2.4 2.7 3.7 1.4
Netherlands 2.8 3.2 2.7 3.4 2.1 3.7 4.0
Norway 5.5 6.4 4.1 5.1 5.3 10.5 8.0
Spain 6.7 10.1 5.5 5.6 3.6 3.5 3.6
Sweden 5.3 8.8 1.9 5.3 2.8 6.7 3.2
United Kingdom 3.6 7.1 1.5 3.3 0.6 0.5 -0.7
Continued on next page
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Table B. Output per hour, hourly compensation, unit labor costs, and related measures
Manufacturing, 17 countries or areas, 1979-2008
Average annual rates of change(1)
_________________________________________________________________________________________________________________________
Country or area 1979-2008 1979-1990 1990-1995 1995-2000 2000-2008 2006-2007 2007-2008
_________________________________________________________________________________________________________________________
Hourly compensation{3}: National currency basis
United States 4.5 5.6 3.4 4.5 3.8 4.3 3.0
Canada 4.6 6.8 3.6 2.9 3.3 3.5 2.1
Australia NA NA 3.7 4.0 5.1 5.3 2.7
Japan 2.6 4.6 3.6 1.2 0.3 -0.2 1.8
Korea, Republic of NA NA 18.9 8.6 8.8 6.4 2.0
Singapore NA NA 7.6 2.2 0.6 -0.7 0.5
Taiwan 6.9 12.1 7.2 3.4 1.9 3.2 1.3
Belgium 4.3 6.1 3.8 2.0 3.7 5.3 3.0
Denmark 5.3 8.1 2.9 2.9 4.5 2.6 3.4
France 5.6 9.1 4.5 2.8 3.4 2.7 3.0
Germany(2) 4.3 5.6 6.4 3.1 2.2 1.7 2.5
Italy 7.0 12.5 6.1 2.7 2.9 2.2 2.6
Netherlands 3.9 4.1 4.5 3.4 3.6 3.2 3.3
Norway 6.3 9.0 3.4 5.2 5.1 4.8 5.6
Spain 7.1 11.4 8.2 1.4 4.3 4.9 4.8
Sweden 6.0 9.1 3.7 4.8 3.9 4.8 3.0
United Kingdom 6.6 10.5 3.5 4.7 4.5 3.3 2.5
Unit labor costs{3}: National currency basis
United States 0.6 2.7 -0.3 -1.0 -0.7 -0.4 1.7
Canada 2.3 4.6 0.3 -0.9 2.5 0.8 4.8
Australia NA NA 2.4 0.5 3.5 3.2 3.6
Japan -0.8 0.7 0.3 -2.1 -2.9 -3.6 2.0
Korea, Republic of 4.5 8.1 8.7 -2.0 1.3 -1.1 0.8
Singapore NA NA 0.6 -4.1 -0.1 3.2 7.5
Taiwan 1.2 5.6 2.3 -2.1 -3.1 -5.2 1.7
Belgium 1.0 1.8 0.7 -0.4 0.8 0.8 2.4
Denmark 3.1 5.7 0.2 1.1 2.7 2.2 8.3
France 2.0 5.1 1.0 -1.7 0.8 1.5 3.8
Germany(2) 1.3 3.3 3.4 -0.5 -1.4 -3.2 2.7
Italy 4.7 8.8 2.2 1.2 3.1 1.7 6.2
Netherlands 0.7 0.8 0.7 0.1 0.9 0.5 4.7
Norway 4.5 6.9 3.3 3.7 2.3 5.0 4.9
Spain 4.6 7.8 4.9 0.5 2.7 2.5 5.8
Sweden 1.7 6.9 -1.8 -1.9 -0.8 4.2 6.9
United Kingdom 3.1 6.1 1.1 1.9 0.9 -0.1 2.2
Continued on next page
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Table B. Output per hour, hourly compensation, unit labor costs, and related measures
Manufacturing, 17 countries or areas, 1979-2008
Average annual rates of change(1)
_________________________________________________________________________________________________________________________
Country or area 1979-2008 1979-1990 1990-1995 1995-2000 2000-2008 2006-2007 2007-2008
_________________________________________________________________________________________________________________________
Unit labor costs{3}: U.S. dollar basis
United States 0.6 2.7 -0.3 -1.0 -0.7 -0.4 1.7
Canada 2.6 4.6 -2.9 -2.4 6.8 6.5 5.6
Australia NA NA 1.3 -4.2 8.6 15.0 5.4
Japan 1.7 4.6 9.4 -4.8 -2.4 -4.8 16.2
Korea, Republic of 1.6 4.4 6.9 -9.2 1.7 1.6 -14.8
Singapore NA NA 5.7 -7.8 2.5 8.8 14.6
Taiwan 1.7 8.5 2.7 -5.3 -3.2 -6.2 6.0
Belgium 1.2 0.6 3.3 -7.9 6.9 10.1 10.0
Denmark 3.2 4.1 2.2 -6.1 8.9 11.7 15.8
France 1.8 2.7 2.8 -8.4 6.9 10.8 11.5
Germany(2) 2.5 4.5 5.9 -8.0 4.5 5.7 10.3
Italy 3.1 5.2 -3.9 -3.7 9.3 11.0 14.1
Netherlands 1.7 1.7 3.3 -7.6 6.9 9.7 12.4
Norway 4.1 4.9 3.1 -2.9 8.2 15.0 9.0
Spain 2.8 3.8 0.8 -6.6 8.9 11.9 13.6
Sweden 0.2 3.8 -5.4 -6.7 3.4 13.8 9.7
United Kingdom 2.6 4.5 -1.4 1.1 3.5 8.5 -5.3
Exchange rates(4)
United States -- -- -- -- -- -- --
Canada 0.3 0.0 -3.2 -1.6 4.2 5.6 0.7
Australia -0.9 -3.2 -1.1 -4.7 4.9 11.4 1.7
Japan 2.6 3.8 9.1 -2.7 0.5 -1.2 13.9
Korea, Republic of -2.8 -3.4 -1.7 -7.3 0.4 2.7 -15.4
Singapore NA NA 5.0 -3.9 2.5 5.4 6.5
Taiwan 0.5 2.7 0.3 -3.3 -0.1 -1.1 4.2
Belgium 0.2 -1.2 2.6 -7.6 6.0 9.1 7.4
Denmark 0.1 -1.5 2.0 -7.1 6.0 9.2 6.9
France -0.2 -2.2 1.8 -6.8 6.0 9.1 7.4
Germany(2) 1.1 1.1 2.5 -7.5 6.0 9.1 7.4
Italy -1.6 -3.3 -6.0 -4.9 6.0 9.1 7.4
Netherlands 1.0 0.9 2.6 -7.6 6.0 9.1 7.4
Norway -0.4 -1.9 -0.3 -6.4 5.7 9.5 3.9
Spain -1.8 -3.7 -3.9 -7.1 6.0 9.1 7.4
Sweden -1.5 -2.9 -3.7 -4.9 4.2 9.1 2.6
United Kingdom -0.5 -1.6 -2.4 -0.8 2.6 8.6 -7.4
_________________________________________________________________________________________________________________________
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.
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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 and Singapore
have 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 costs relative to 14(1) other economies, 1979-2008
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
2008.
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, 1979-2008
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 112.7 111.4 101.2 112.7 110.0 102.5
1981 117.6 120.9 97.3 117.6 108.1 108.8
1982 127.3 131.2 97.0 127.3 107.4 118.5
1983 122.7 133.6 91.8 122.7 105.1 116.7
1984 123.8 133.7 92.6 123.8 98.3 125.9
1985 126.1 136.2 92.6 126.1 96.5 130.7
1986 130.0 141.6 91.8 130.0 115.8 112.3
1987 125.4 145.1 86.4 125.4 132.8 94.4
1988 126.5 147.8 85.5 126.5 144.9 87.3
1989 129.5 151.8 85.4 129.5 146.3 88.5
1990 133.9 158.2 84.7 133.9 160.1 83.7
1991 137.7 166.4 82.8 137.7 169.3 81.4
1992 139.0 169.9 81.8 139.0 174.0 79.9
1993 138.2 170.8 80.9 138.2 166.0 83.3
1994 134.6 168.1 80.1 134.6 163.0 82.5
1995 131.7 170.1 77.4 131.7 173.1 76.1
1996 128.9 172.1 74.9 128.9 169.4 76.1
1997 126.7 169.8 74.6 126.7 155.5 81.5
1998 125.7 170.9 73.6 125.7 145.8 86.2
1999 125.0 167.6 74.6 125.0 145.4 86.0
2000 125.1 163.5 76.5 125.1 136.6 91.6
2001 128.4 169.0 76.0 128.4 133.1 96.5
2002 122.5 169.7 72.2 122.5 135.4 90.5
2003 124.4 169.5 73.4 124.4 152.3 81.7
2004 118.1 168.4 70.1 118.1 163.7 72.2
2005 119.7 167.0 71.7 119.7 167.3 71.6
2006 116.5 166.1 70.2 116.5 170.2 68.5
2007 116.2 165.1 70.4 116.2 178.4 65.1
2008 118.1 170.9 69.1 118.1 190.3 62.1
(1) Australia and Singapore have been omitted from this table because data are not available before 1990.
