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Productivity and Costs

Productivity and Costs. By Rupa Kaur And Cristina Ontiveros. Productivity and Costs. Published by: Bureau of Labor and Statistics Frequency: quarterly Period Covered: prior quarter Volatility: moderate Market significance: moderate Web site: www.bls.gov. What is it?.

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Productivity and Costs

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  1. Productivity and Costs By Rupa Kaur And Cristina Ontiveros

  2. Productivity and Costs • Published by: Bureau of Labor and Statistics • Frequency: quarterly • Period Covered: prior quarter • Volatility: moderate • Market significance: moderate • Web site: www.bls.gov

  3. What is it? • Measures the efficiency of workers and the costs associated with producing a unit of output. • Productivity specifically relates output to the amount of production time required in producing each unit. • The cost factors of the report are unit labor costs and compensation per hour.

  4. What is it in the report? • Quarterly labor productivity measures are available for: • Business and non-farm business sectors • Manufacturing sector (total, durable, and nondurable) • Non-financial corporations sector

  5. Why is it important? • Economic indicator. • Aid economic policymakers in assessment of current economic activity and in economic analysis. • Aid Bureau of Economic Analysis in compiling compensation measures for National Income and Product Accounts. • Assessment of labor requirements. • Studies of relationships among productivity, wages, prices, and employment. • Aid in understanding sources of economic growth.

  6. Keys to Interpreting the Data • Data is available in quarterly and annual indexes and % changes. • Productivity: Output per hours depends on: • Capital investment • Technology • Capacity utilization • Managerial skills • Costs: Indicate inflation.

  7. Latest Release • Business and Non-farm Business Sector • Business sector for fourth quarter was 1.0 and annual average for 2005 – 2006 was 1.7 • Non-farm business sector for fourth quarter was 1.6 and annual average for 2005 – 2006 was 1.6

  8. Latest Release • Manufacturing Sector: productivity increase for year 2006, quarter four. • Total 2.2 • Durable 3.4 • Non Durable 0.8 • Annual Averages 2005 – 2006 • Total 4.0 • Durable 6.2 • Non Durable 1.7

  9. Historical Data • Business Sector • Unit Labor Costs

  10. Historical Data • Non-Farm Business Sector • Unit Labor Costs

  11. Historical Data • Manufacturing Sector • Unit Labor Costs

  12. Historical Data • Non-Financial Corporate Sector • Unit Labor Costs

  13. Data Analysis • Conclusion: • The manufacturing sector is distinct from the other sectors • The year 2000 had a huge effect on the market • Productivity and Costs are not always in correlation.

  14. THANK YOU!

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