BLS DAILY REPORT, THURSDAY, SEPTEMBER 7, 2000
RELEASED TODAY: Average hourly compensation costs in U.S. dollars for
manufacturing production workers in 28 foreign economies remained at 79
percent of the U.S. level in 1999, after declining in the previous three
years. Although costs in Europe and Canada continued to decline relative to
the United States, compensation costs in Mexico, Japan, and the Asian newly
industrializing economies (NIEs) of Hong Kong, Korea, Singapore, and Taiwan
increased at a faster rate than in the United States. ...
___The stellar performance of the U.S. economy was obvious in the
government's revised productivity report, as output per hour worked rose by
a robust 5.7 percent in the second quarter and unit labor costs declined,
according to BLS. The report was even more favorable than the initial
estimates for the nonfarm business sector. Unit labor costs of nonfarm
private businesses -- a key inflation yardstick -- declined by 0.4 percent
in the second quarter. Out of all the figures released in the report, the
labor cost data underscored the low-inflation environment that has surprised
most forecasters even as the economic expansion remains strong, analysts
say. ... (Daily Labor Report, page D-1)
___The U.S. labor force's ever-growing productivity continues to exceed
expectations. Even a routine revision to second-quarter productivity left
analysts surprised. ... (Wall Street Journal, page A2).
___the Labor Department said revised figures showed productivity rose at a
startling 5.7% annual rate during April, May and June (up from an initial
estimate of 5.3%). For the 12 months ended in June, productivity boomed at
the highest rate in 17 years. And even though businesses paid their workers
more, the fact that employees produced more for every hour they worked meant
that labor costs actually dropped 0.4%. ... (Washington Post, page E16).
While it is difficult to pin down exact numbers some computer-adept high
school students nationwide are deciding to forgo college in favor on
entering the red-hot technology field. Computer jobs are plentiful, pay is
solid, and, those choosing to pass on school say, the industry is moving so
quickly that four years spent in college will be time spent falling behind.
... It is not clear how many students are passing up college to enter the
computer field. Generally speaking, the percentage of high school graduates
attending college dropped to 63 percent in 1999 from 67 percent in 1997,
according to census figures. Steve Hipple, an economist for BLS, said one
of the reasons may be the hot economy and its technology engine. ... (New
York Times, page E1).
The nonmanufacturing sector of the U.S. economy grew at a more rapid clip in
August than in July, the National Association of Purchasing Management said.
The NAPM monthly survey found that its business activity index hit 60
percent for the month, 4.5 percentage points above July. ... (Daily Labor
Report, page A-2).
Data compiled by BNA in the first 36 weeks of 2000 for all settlements
showed that the weighted average first-year wage increase in newly
negotiated contracts was 3.7 percent, compared with 3.4 percent in the
comparable period of 1999. The median first-year increase for settlements
reported to date in 2000 was 3.3 percent, compared with 3 percent in 1999.
When construction contracts were excluded, the all-settlements weighted
average gain was 3.7 percent, compared with 3.3 percent in 1999, the data
show. The manufacturing settlements provided a weighted average increase of
3.3 percent, compared with 2.9 percent last year. The weighted average
increase in nonmanufacturing agreements, excluding construction contracts,
was 4 percent, compared with 3.3 percent in 1999. (Daily Labor Report, page
D-11).
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