Internet address: http://www.bls.gov USDL 09-0222
Technical information: (202) 691-5654 For Release: 10:00 A.M. EST
Media contact: (202) 691-5902 Tuesday, March 3, 2009
INTERNATIONAL COMPARISONS OF MANUFACTURING PRODUCTIVITY AND UNIT
LABOR COST TRENDS 2007, REVISED
Manufacturing labor productivity increased in 2007 in 14 of the
17 economies compared by the U.S. Department of Labor's Bureau of
Labor Statistics. The Republic of Korea and Taiwan had the largest
productivity increases of 8.7 percent each. The United States
productivity increase of 4.7 percent was the fourth largest.
Singapore, included for the first time in these comparisons, had the
steepest decline (-4.0 percent) of the three economies where
productivity declined. (See chart 1.)
Over the 2000-2007 period, of the 17 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.) They also do not reflect the annual benchmark revision of
the BLS Current Employment Statistics program data released on
February 6, 2009.
PRINTED COPY CONTAINS CHART AT THIS POINT:
Chart 1. Percent change in manufacturing output per hour, 2006-
2007
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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 ten and declined
in seven of the economies in 2007. The decline for the United States
(-1.1 percent) was the fifth steepest decline among the economies
compared. However, expressed in U.S. dollars, manufacturing unit
labor costs increased in 14 of the economies and declined in 3,
including the United States. The U.S. manufacturing sector improved
its competitiveness against all economies compared except Taiwan and
Japan. Declines in the dollar's exchange rate reversed the direction
of movement in four countries and had the largest impact on
Australia, from +3.2 percent increase in unit labor costs in national
currency to +15.0 percent increase 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.
(See chart 2.)
PRINTED COPY CONTAINS CHART AT THIS POINT:
Chart 2. Percent change in manufacturing unit labor costs, 2006-
2007
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Table A. Output per hour, hourly compensation, unit labor costs, and related measures
Manufacturing, 17 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 4.7 2.9 -1.7 -1.7 0.0 1.7 3.5 -1.1 -1.1 --
Canada 2.7 -0.9 -3.5 -3.4 -0.1 -0.1 3.6 0.8 6.5 5.6
Australia 1.9 3.3 1.3 1.8 -0.5 6.6 5.3 3.2 15.0 11.4
Japan 3.5 3.6 0.2 0.5 -0.4 -0.1 -0.2 -3.6 -4.8 -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
Singapore -4.0 5.8 10.2 9.9 0.2 5.6 -4.2 -0.2 5.2 5.4
Taiwan 8.7 10.4 1.5 1.4 0.1 4.6 3.0 -5.2 -6.2 -1.1
Belgium 4.4 2.6 -1.7 -0.9 -0.8 3.5 5.3 0.8 10.1 9.1
Denmark 0.4 3.6 3.2 1.8 1.4 5.9 2.6 2.2 11.7 9.2
France 2.6 1.2 -1.3 -1.3 0.0 1.6 2.9 0.3 9.5 9.1
Germany 4.9 6.1 1.2 1.2 -0.1 2.8 1.6 -3.1 5.7 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 5.3 5.5 5.0 0.5 10.5 4.8 5.0 15.0 9.5
Spain 3.8 2.8 -1.0 -0.6 -0.4 3.8 4.9 1.0 10.3 9.1
Sweden 0.5 2.3 1.8 0.6 1.2 6.7 4.8 4.2 13.8 9.1
United Kingdom 2.6 0.7 -1.9 -2.2 0.4 -1.2 0.7 -1.9 6.5 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
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 Comparison, formerly called the Division of Foreign Labor
Statistics, 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.
Singapore
With this news release, Singapore becomes the seventeenth economy
included in the international comparisons of manufacturing
productivity and unit labor costs. The main source of Singapore's
economic data is the Singapore Department of Statistics. The data
comply with international standards of national accounts and
industrial classification. All provided series: output, employment,
hours, and compensation are available from 1990 forward.
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Manufacturing productivity, output, and labor input
In 2007, manufacturing productivity increased in 14 of the 17
economies compared. The United States increase of 4.7 percent was the
fourth largest among the 17 economies. This increase was slightly
above the 4.0 percent U.S. average annual increase since 1979. Korea
and Taiwan led in productivity growth (+8.7 percent each), followed
by Germany (+4.9 percent). Singapore's productivity decline of 4.0
percent significantly exceeded the declines in Italy and Norway (-
0.5 and -0.2 percent respectively). Among the economies compared,
Singapore also recorded the largest reversal from high manufacturing
productivity growth rates in the nineties to the steepest decline in
2007. (See tables A and B.)
Between 2000 and 2007, productivity gains in the U.S.
manufacturing sector were mainly due to declines in total hours. To a
lesser degree, the productivity gains of the European manufacturing
sectors compared here were also due to declines in total hours. By
contrast, productivity gains in Korea and Taiwan were mainly due to
increases in output.
Manufacturing output increased in 16 of the 17 economies in 2007.
Taiwan was the leader in the growth of output with a +10.4 percent
increase. In 2007, growth in manufacturing output in Germany, Norway,
and Taiwan was noticeably higher than their average annual rates of
increase over the 1979-2007 period, while the U.S. increase remained
at 2.9 percent. Canada was the only economy that had a decline (-0.9
percent) in manufacturing output in 2007.
While 16 of the manufacturing economies had increases in 2007 in
output, 10 had increases in total hours worked. Singapore and Norway
had the largest increases in total hours worked of 10.2 and 5.5
percent, respectively. Canada had the steepest decline (-3.5 percent)
in hours in 2007. The United States and Belgium had the fourth
steepest decline in hours worked (-1.7 percent).
For the period 2000-2007, total hours worked in manufacturing
declined in 16 of the 17 economies. The United Kingdom had the
steepest average annual decline (-3.9 percent), followed by the
United States (-3.1 percent). Singapore was the only economy that
experienced growth (+3.7 percent) in total hours worked in this
period.
In 2007, manufacturing employment increased in 10 of the 17
economies. Singapore had the largest increase in employment (+9.9
percent) - almost double the next largest growth in Norway (+5.0
percent). Canada had the largest decline in employment (-3.4
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 17 economies and increased in 8, while the United States and
France showed no change in average hours worked. This compares to 11
economies with declining average annual hours over the 2000-2007
period.
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Manufacturing hourly compensation and unit labor costs
Total labor compensation in manufacturing increased in 14 of the
17 economies in 2007. The largest increases were in Norway (+10.5
percent) and Sweden (+6.7 percent). U. S. compensation rose by 1.7
percent. Total labor compensation declined in the United Kingdom,
Canada and Japan. (See tables A and B.)
Hourly compensation in manufacturing increased also in 15 of the
17 economies in 2007, with Singapore and Japan as the exceptions. The
largest increase was in Korea (+7.8 percent), followed by Australia
and Belgium (+5.3 percent each). 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
ten economies in 2007 and decreased in seven. The largest increase
occurred in Norway (+5.0 percent) and the largest decline was in
Taiwan (-5.2 percent). Unit labor costs in U.S. manufacturing
decreased by 1.1 percent, compared to an average annual increase of
0.6 percent since 1979.
Expressed in U.S. dollars, manufacturing unit labor costs
increased in 14 economies in 2007 and declined in 3, including the
United States. Steeper declines occurred in Taiwan and Japan. Thus,
the manufacturing sector in the United States improved its cost
competitiveness against all economies compared except Taiwan and
Japan.
The unit labor costs of four economies, Germany, the United
Kingdom, Singapore, and Korea, went from decreases to increases when
computed on a U.S. dollar basis. Australia and Norway had the largest
currency appreciations in 2007. Australia also showed the largest
difference, from +3.2 percent increase in unit labor costs in
national currency to +15.0 percent increase in unit labor costs
expressed in U.S. dollars.
Movements in exchange rates are often 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 exceptions were the currencies of
Japan and Taiwan, which 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, 17 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 4.0 2.8 3.7 5.6 5.0 4.7 4.7
Canada 2.4 2.1 3.4 3.8 1.3 2.2 2.7
Australia 2.2 2.3 1.3 3.4 1.9 1.0 1.9
Japan 3.6 3.8 3.3 3.4 3.7 1.0 3.5
Korea, Republic of NA NA 9.4 10.8 7.6 10.1 8.7
Singapore NA NA 6.9 6.5 1.7 2.4 -4.0
Taiwan 5.8 6.1 4.7 5.6 6.4 6.8 8.7
Belgium 3.4 4.2 3.1 2.4 3.1 3.7 4.4
Denmark 2.4 2.2 2.7 1.8 2.7 4.6 0.4
France 3.8 3.8 3.4 4.6 3.5 4.0 2.6
Germany (2) 3.1 2.1 2.9 3.7 4.3 8.4 4.9
Italy 2.2 3.4 3.8 1.4 -0.2 -0.4 -0.5
Netherlands 3.4 3.3 3.7 3.3 3.2 3.2 2.8
Norway 1.8 1.9 0.1 1.4 3.0 -2.0 -0.2
Spain 2.5 3.3 3.1 0.8 2.1 2.0 3.8
Sweden 4.5 2.1 5.5 6.8 6.0 9.4 0.5
United Kingdom 3.6 4.1 2.8 2.7 4.1 5.1 2.6
Output
United States 2.9 2.2 3.6 5.4 1.8 5.5 2.9
Canada 2.1 1.9 2.2 6.2 -0.2 -0.4 -0.9
Australia 1.5 1.6 0.8 2.6 1.1 -0.9 3.3
Japan 2.7 4.7 0.4 1.2 2.3 3.5 3.6
Korea, Republic of 8.8 10.7 8.2 7.9 6.9 8.5 6.5
Singapore NA NA 8.0 6.7 5.5 11.9 5.8
Taiwan 6.1 7.4 4.4 5.8 5.7 7.2 10.4
Belgium 1.8 2.6 0.6 2.3 1.0 2.8 2.6
Denmark 1.3 1.3 2.1 1.7 0.6 4.1 3.6
France 1.6 1.5 0.6 3.4 1.2 1.1 1.2
Germany (2) 1.4 1.2 -1.0 2.2 2.9 7.3 6.1
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 0.9 -0.5 0.7 1.4 2.9 3.0 5.3
Spain 2.2 2.1 0.6 5.0 1.5 1.9 2.8
Sweden 3.8 1.7 3.8 7.4 4.6 7.9 2.3
United Kingdom 0.7 0.9 0.5 1.3 0.1 1.8 0.7
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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, 17 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 -0.3 -0.2 -1.2 2.3 -1.5 -2.5 -3.5
Australia -0.7 -0.7 -0.5 -0.9 -0.8 -1.9 1.3
Japan -0.9 0.8 -2.8 -2.1 -1.4 2.4 0.2
Korea, Republic of NA NA -1.1 -2.6 -0.7 -1.4 -2.1
Singapore NA NA 1.0 0.2 3.7 9.3 10.2
Taiwan 0.3 1.2 -0.3 0.1 -0.6 0.3 1.5
Belgium -1.6 -1.6 -2.4 -0.1 -2.1 -0.9 -1.7
Denmark -1.0 -1.0 -0.7 -0.1 -2.0 -0.4 3.2
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 -1.1 1.2
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 -0.8 -2.3 0.6 0.0 -0.1 5.1 5.5
Spain -0.3 -1.2 -2.4 4.1 -0.6 -0.1 -1.0
Sweden -0.7 -0.4 -1.7 0.5 -1.3 -1.4 1.8
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 -0.4 -0.3 -1.5 2.2 -1.4 -2.7 -3.4
Australia -1.3 -1.3 -2.3 -1.1 -0.7 -1.2 1.8
Japan -0.6 1.0 -1.6 -2.0 -1.5 1.5 0.5
Korea, Republic of NA NA -0.8 -2.5 0.4 0.3 -1.3
Singapore NA NA 0.7 -0.1 3.5 8.6 9.9
Taiwan 0.9 2.0 -0.3 0.4 0.2 1.1 1.4
Belgium -1.5 -1.6 -2.2 -0.6 -1.6 -1.1 -0.9
Denmark -1.0 -0.4 -1.2 -1.2 -1.7 -0.1 1.8
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 -0.8 1.2
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 -0.9 -2.2 0.4 0.2 -0.4 5.0 5.0
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 -0.8 0.6
United Kingdom -2.8 -2.9 -2.7 -1.2 -4.0 -2.7 -2.2
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Continued on next page
-8-
Table B. Output per hour, hourly compensation, unit labor costs, and related measures
Manufacturing, 17 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 -0.1
Australia 0.6 0.6 1.9 0.3 -0.2 -0.7 -0.5
Japan -0.3 -0.2 -1.3 -0.1 0.1 0.9 -0.4
Korea, Republic of NA NA -0.2 -0.1 -1.1 -1.7 -0.8
Singapore NA NA 0.3 0.3 0.2 0.6 0.2
Taiwan -0.6 -0.8 0.0 -0.3 -0.8 -0.8 0.1
Belgium -0.1 0.0 -0.2 0.5 -0.6 0.2 -0.8
Denmark 0.0 -0.5 0.6 1.1 -0.3 -0.3 1.4
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 0.1 0.5
Spain -0.4 -0.5 -0.4 0.8 -1.1 0.2 -0.4
Sweden 0.7 0.7 1.9 0.3 0.1 -0.6 1.2
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 1.9 0.4 -0.1
Australia NA NA 3.2 3.1 4.6 4.8 6.6
Japan 1.7 5.5 0.7 -1.0 -1.4 1.3 -0.1
Korea, Republic of 13.5 19.6 17.6 5.4 7.3 7.0 5.5
Singapore NA NA 8.7 2.4 3.8 6.7 5.6
Taiwan 7.4 13.5 6.8 3.6 1.7 3.5 4.6
Belgium 2.7 4.4 1.3 1.9 1.6 2.7 3.5
Denmark 4.3 7.0 2.3 2.8 2.5 4.4 5.9
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 3.0 2.8
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 5.4 6.4 4.1 5.1 4.9 11.6 10.5
Spain 6.8 10.1 5.5 5.6 3.6 4.2 3.8
Sweden 5.4 8.8 1.9 5.3 2.7 1.5 6.7
United Kingdom 3.8 7.1 1.5 3.3 0.7 3.1 -1.2
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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, 17 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 3.5 3.1 3.6
Australia NA NA 3.7 4.0 5.5 6.7 5.3
Japan 2.7 4.6 3.6 1.2 0.0 -1.1 -0.2
Korea, Republic of NA NA 18.9 8.1 8.1 8.6 7.8
Singapore NA NA 7.6 2.2 0.1 -2.4 -4.2
Taiwan 7.1 12.1 7.1 3.4 2.3 3.2 3.0
Belgium 4.4 6.1 3.8 2.0 3.8 3.6 5.3
Denmark 5.4 8.1 2.9 2.9 4.7 4.9 2.6
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 1.6
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 5.0 6.1 4.8
Spain 7.2 11.4 8.2 1.4 4.2 4.3 4.9
Sweden 6.1 9.1 3.7 4.8 4.1 2.9 4.8
United Kingdom 6.8 10.5 3.9 4.7 4.8 6.4 0.7
Unit labor costs(3): National currency basis
United States 0.6 2.6 -0.2 -0.8 -1.0 -0.6 -1.1
Canada 2.2 4.6 0.3 -0.9 2.2 0.9 0.8
Australia NA NA 2.4 0.5 3.5 5.7 3.2
Japan -0.9 0.8 0.3 -2.2 -3.5 -2.0 -3.6
Korea, Republic of 4.3 8.1 8.7 -2.4 0.4 -1.4 -0.9
Singapore NA NA 0.6 -4.1 -1.6 -4.7 -0.2
Taiwan 1.2 5.6 2.3 -2.1 -3.8 -3.4 -5.2
Belgium 0.9 1.8 0.7 -0.4 0.6 -0.1 0.8
Denmark 2.9 5.7 0.2 1.1 2.0 0.3 2.2
France 1.9 5.1 1.0 -1.7 0.1 0.9 0.3
Germany (2) 1.3 3.3 3.4 -0.5 -2.0 -4.0 -3.1
Italy 4.8 8.8 2.2 1.2 3.1 2.4 2.6
Netherlands 0.5 0.8 0.7 0.1 0.3 -0.4 0.2
Norway 4.4 6.9 3.3 3.7 1.9 8.3 5.0
Spain 4.5 7.8 4.9 0.5 2.0 2.3 1.0
Sweden 1.5 6.9 -1.8 -1.9 -1.9 -5.9 4.2
United Kingdom 3.1 6.2 1.1 1.9 0.6 1.3 -1.9
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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, 17 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 0.6 2.6 -0.2 -0.8 -1.0 -0.6 -1.1
Canada 2.5 4.6 -2.9 -2.4 7.0 7.8 6.5
Australia NA NA 1.3 -4.2 9.1 4.5 15.0
Japan 1.3 4.6 9.4 -4.8 -4.8 -7.3 -4.8
Korea, Republic of 1.9 4.4 6.9 -9.5 3.3 5.8 1.8
Singapore NA NA 5.7 -7.8 0.3 -0.1 5.2
Taiwan 1.6 8.5 2.7 -5.3 -4.5 -4.5 -6.2
Belgium 0.9 0.6 3.3 -7.9 6.5 0.8 10.1
Denmark 2.8 4.1 2.2 -6.1 7.9 1.2 11.7
France 1.4 2.7 2.8 -8.4 6.0 1.8 9.5
Germany (2) 2.2 4.5 5.9 -8.0 3.7 -3.1 5.7
Italy 2.8 5.2 -3.9 -3.7 9.1 3.3 12.0
Netherlands 1.3 1.7 3.3 -7.6 6.2 0.5 9.3
Norway 3.9 4.9 3.1 -2.9 8.1 8.9 15.0
Spain 2.3 3.8 0.8 -6.6 8.0 3.2 10.3
Sweden -0.1 3.8 -5.4 -6.7 2.5 -4.7 13.8
United Kingdom 2.9 4.5 -1.4 1.1 4.7 2.6 6.5
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
Singapore NA NA 5.0 -3.9 2.0 4.8 5.4
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 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, 1979-2007
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 112.7 111.4 101.2 112.7 110.0 102.5
1981 117.6 120.9 97.3 117.6 108.8 108.2
1982 127.4 131.3 97.1 127.4 108.3 117.6
1983 122.7 133.6 91.8 122.7 106.2 115.5
1984 123.8 133.5 92.7 123.8 99.6 124.3
1985 126.2 136.0 92.8 126.2 97.7 129.2
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 85.5 129.4 147.8 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 77.6 131.6 174.3 75.5
1996 129.0 171.4 75.3 129.0 170.4 75.7
1997 127.1 169.1 75.2 127.1 156.5 81.2
1998 125.7 170.1 73.9 125.7 146.4 85.9
1999 124.4 166.7 74.6 124.4 146.3 85.0
2000 126.1 162.3 77.7 126.1 137.8 91.5
2001 127.7 167.8 76.1 127.7 134.1 95.3
2002 123.8 168.2 73.6 123.8 135.9 91.1
2003 124.6 167.7 74.3 124.6 152.2 81.9
2004 119.9 166.6 72.0 119.9 163.4 73.4
2005 119.7 164.9 72.6 119.7 166.9 71.7
2006 119.0 164.0 72.6 119.0 169.8 70.1
2007 117.7 162.7 72.3 117.7 177.2 66.4
----------------------------------------------------------------
(1) Australia and Singapore have been omitted from this table
because data are not available before 1990.
