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HANDBOOK OF LABOR STATISTICS 1970U.S. DEPARTMENT OF LABOR

B U R E A U O F L A B O R S T A T I S T I C S

D R U R Y C O L L E G El i b r a r y

OCT 0.3 1970

u . S . D EPO SITO R Y

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

HANDBOOK OF LABOR STATISTICS 1970%

U.S. D E P A R T M E N T OF L A B O R J. D . H odgson , Secretary

BUREAU OF LABOR STATISTICS . Geoffrey H. Moore, Commissioner

BULLETIN 1666

For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402 - Price $3.50


Prefatory NoteThe 1970 edition of the H andbook o f Labor S ta tistics makes available in one

volume the major series produced by the Bureau of Labor Statistics. In general, each table is complete historically, beginning with the earliest reliable and consistent data and running through calendar year 1969. Related series from other governmental agencies and foreign countries are included.

The data are grouped under subject matter headings having economic significance and without regard to the surveys or other sources from which the information was developed. For example, the section on Employment covers data from several programs: Current Population Survey, Current Employment and Labor Turnover Statistics, Farm Employment and Wage Rates, Government Employment, Apprentices in Training, and Manpower Development and Training. Technical Notes describing major statistical programs and identifying the tables derived from each program precede the tables. More complete descriptions have been published in the B L S H andbook o f M ethods fo r Surveys an d S tu dies B L S B u lletin N o . 1458.

The H andbook of L abor S ta tistics was compiled in the Office of Publications with the cooperation of the operating divisions of the Bureau of Labor Statistics and other government agencies. The materials were assembled by James A. McCall, under the direction of Tommy C. Ishee.

G e o f f r e y H . M ooreCommissioner of Labor Statistics


Handbook of Labor Statistics 1970CONTENTS

TECHNICAL NOTES PageCurrent Population Survey______________________________________________ 1Urban Employment Survey_____________________________________________ 3Current Employment and Labor Turnover Statistics Programs________________ 4Wage and Salary Surveys, ______________________________________________ 6Employer Expenditures for the Compensation of Employees__________________ 7Productivity__________________________________________________________ 8Consumer Prices______________________________________________________ 9Wholesale Prices_________________________________________________________ 10Consumer Expenditures___________________________________________________ 12Family Budgets_______________________________________________________ 13Union Membership______________________________________________________ 13Work Stoppages_________________________________________________________ 14Industrial Injuries_____________________________________________________ 14Foreign Labor Statistics________________________________________________ 14Farm Employment and Wage Rates________________________________________ 16Governmental Employment_____________________________________________ 16Apprentices in Training___________________________________________________ 17Manpower Development and Training_____________________________________ 17Unemployment Insurance_______________________________________________ 19Employee-Benefit Plans_________________________________________________ 19Social Insurance_______________________________________________________ 20National Labor Relations Board, Jurisdiction and Cases______________________ 21Wage and Hour and Public Contracts Investigation Findings__________________ 22Gross National Product and National Income__________________________________ 22Consumer Income_______________________________________________________ 24

TABLES Labor Force1. Employment Status of the Noninstitutional Population, by Sex, 1947-69___ 252. Employment Status of the Civilian Noninstitutional Population for the

United States, Metropolitan Areas, and Nonmetropolitan Areas, 1967-69, 273. Total Labor Force (Including Armed Forces) and Labor Force Participation

Rates, by Sex and Age, 1947-69____________________________________ 284. Civilian Labor Force, by Sex, Color, and Age, 1947-69__________________ 315. Civilian Labor Force Participation Rates, by Marital Status, Age, and Sex,

1957-69_______________________________________________________ 356. Experienced Civilian Labor Force, by Occupation and Sex, 1954-69_________ 367. Persons Not in the Labor Force, by Sex, Color, and Age, 1947-69________ 378. Reasons for Nonparticipation in the Labor Force, by Age, and Sex, 1968-69, _ 419. Reasons for Nonparticipation in the Labor Force, by Age, Color, and Sex,

1968-69_________________________________________________________ 4210. Labor Force Status of the Civilian Noninstitutional Population, by School

Enrollment, Sex, and Age, October 1947-69___________________________ 4311. Labor Force Participation Rates for Civilian Noninstitutional Population,

by School Enrollment, Sex, and Age, October 1947-69__________________ 4512. Educational Attainment of Civilian Labor Force 18 Years Old and Over, by

Sex and Color, Selected Dates, 1952-69____________________________ 4613. Median Years of School Completed by the Civilian Labor Force 18 Years

Old and Over, by Sex and Age, Selected Dates, 1952-69_________________ 48

v


CONTENTSContinuedTables Page

Labor ForceContinued14. Labor Force Status and Labor Force Participation Rates of Married Women,

Husband Present, by Presence and Age of Children, 1948-69___________ 4915. Civilian Labor Force, Labor Force Participation Rates, and Unemployment

Rates, by Color, 1968-69________________________________________ 50

EmploymentCharacteristics:

16. Employment Status of Persons 16-19 Years Old and Adults, by Color,1954-69.____ 51

17. Employment Status of Persons 16-24 Years Old, 1947-69________________ 5318. Employment Status of Persons 16-21 Years Old, by Color, 1963-69_______ 5619. Employed Persons, by Occupation Group, Color, and Sex, Selected Years,

1959-69________________________________________ 5720. Employed Persons, 16 Years Old and Over, by Major Occupation Group and

Nonagricultural Industry Group, 1969_____________________________ 5821. Full- and Part-Time Status of the Civilian Labor Force, by Age and Sex,

1963-69_______________________________________________________ 5922. Nonagricultural Workers on Full-Time Schedules or on Voluntary Part Time,

by Selected Characteristics, 1957-69_______________________________ 6123. Persons on Part Time for Economic Reasons, by Type of Industry, 1957-69. . 6224. Nonagricultural Workers on Part Time for Economic Reasons, by Sex and

Age, 1957-69__________________________________________________ 6325. Nonagricultural Workers on Part Time for Economic Reasons, by Usual

Full-Time or Part-Time Status and Selected Characteristics, 1957-69------ 6426. Employed Persons Not at Work, by Reason for Not Working, 1957-69____ 6527. Employed Wage and Salary Workers Not at Work in Nonagricultural

Industries, by Reason for Not Working and Pay Status, 1957-69_______ 6628. Employment Status of Family Head, Wife, and Other Family Members in

Husband-Wife Families, Selected Dates, 1955-69_____________________ 68.... 29. Employed Married Women, Husband Present, by Major Occupation Group,

1947-69_______________________________________________________ 6830. Employment Status of the Civilian Noninstitutional Population, by School

Enrollment, Sex, and Age, October 1947-69________________________ 6931. Occupational Distribution of Employed High School Graduates Not Enrolled

in College and of School Dropouts as of October of Year of Graduation or Dropout, by Sex, 1959-69_____ 71

32. Employment Status of High School Graduates Not Enrolled in College andof School Dropouts as of October of Year of Graduation or Dropout, by Sex, Marital Status Of Women, and Color, 1959-69___________________ 72

33. Median Years of School Completed by the Employed Civilian Labor Force18 Years Old and Over, by Sex, Occupation Group, and Color, Selected Years, 1948-69_________________________________________________ 74

34. Persons with Work Experience During the Year, by Extent of Employmentand by Sex, 1950-68____________________________________________ 76

35. Persons with Work Experience During the Year, by Industry Group andClass of Worker of Longest Job, 1955-68____________________________ 77

36. Percent of Persons with Work Experience During the Year Who WorkedYear-Round at Full-Time Jobs, by Industry Group and Class of Worker of Longest Job, 1950-68______________________ ___ ..______________ 78

37. Persons with Two Jobs or More, by Industry and Class of Worker of Primaryand Secondary Job, Selected Dates, 1956-69________________________ 79

Industry:38. Employees on Nonagricultural Payrolls, by Industry Division, 1919-69___ 8039. Employees on Manufacturing Payrolls, by Major Industry Group, 1939-69.. 81

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EmploymentContinuedIndustryContinued

40. Production or Nonsupervisory Workers on Private Nonagricultural Payrolls,by Industry Division, 1939-69____________________________________ 83

41. Production Workers on Manufacturing Payrolls, by Major Industry Group,1929-69______________________________________________________ 84

42. Nonproduction Worker Employment and Ratios of Nonproduction WorkerEmployment to Total Employment, by Major Manufacturing Industry Group, 1939-69________________________________________________ 86

43. Women Employees on Nonagricultural Payrolls,, by Industry Division,1959-69______________________________________________________ 90

44. Women Employees on Manufacturing Payrolls, by Major Industry Group,1959-69______________________________________________________ 91

45. Farm Employment and Wage Rates, 1910-69_________________________ 9246. Governmental Employment and Payrolls, by Level of Government, 1940-68- 93

State and Region:47. Employees on Nonagricultural Payrolls, by Region and State, 1939-69_____ 9448. Employees on Manufacturing Payrolls, by Region and State, 1939-69______ 9649. Employees on Government Payrolls, by Region and State, 1939-69________ 98

Area and City:50. Employment Status of the Noninstitutional Population in the 20 Largest

SMSAs, by Color, Sex, and Age, 1969_____________________________ 10051. Civilian Labor Force and Unemployment in the 20 Largest SMSAs and

Selected Central Cities, by Color, Age, and Sex, 1969_________________ 10152. Employment Status of Persons in Urban Poverty and Other Urban Neighbor

hoods, by Color, Sex, and Age, 1967-69____________________________ 10453. Employment Status of Persons in Selected Poverty Areas Within Central

Cities, by Age, Sex, and Race, July 1968June 1969_________________ 10754. Persons in Selected Poverty Areas Within Central Cities, Not in the Labor

Force, Who Want or Might Want a job, by Major Reason for Not Looking,July 1968June 1969___________________________________________ 108

55. Occupational Distribution of Employed Persons in Selected Poverty AreasWithin Central Cities, by Race, Sex, and Age, July 1968June 1969___ 109

56. Educational Attainment of Workers in Selected Poverty Areas Within CentralCities, by Race, Sex, and Age, July 1958June 1969_________________ 110

57. Work Experience of Persons 20 Years Old and Over in Selected PovertyAreas Within Central Cities, by Sex and Race, July 1968June 1969---- 111

58. Extent of Unemployment During Previous Year of Persons in SelectedPoverty Areas Within Central Cities, by Age, Sex, and Race, July 1968June 1969__________ __________________________________________ 112

59. Job Seeking Methods of Persons in Selected Poverty Areas Within CentralCities, Who Looked for Work During Previous 12 Months, July 1968June 1969_____________________________________________________ 113

60. Weekly Earnings of Persons 16 Years Old and Over in Selected PovertyAreas Within Central Cities, by Race and Sex, July 1968June 1969___ 114

61. Annual Money Income of Families and Unrelated Individuals in SelectedAreas Within Central Cities, by Size of Family, July 1968June 1969___ 115

Labor Turnover:62. Labor Turnover Rates of Employees on Manufacturing Payrolls, 1930-69- - 11663. Labor Turnover Rates of Employees on Manufacturing Payrolls, by Major

Industry Group, 1958-69-................ .............................- .............................. 117

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EmploymentContinuedTraining:

64. Registered Apprentices in Training, New Registrations, Completions, andCancellations, 1941-68__________________________________________ 122

65. Enrollment Opportunities and Federal Obligations for Work and TrainingPrograms Administered by the Department of Labor Through 1969_____ 122

66. Trainees Enrolled in Work and Training Programs Administered by theDepartment of Labor, by Selected Characteristics, Fiscal Years 1963-69. _ 123

67. Enrollment Opportunities and Post-Training Employment, 1963-69_______ 124

UnemploymentCharacteristics:

68. Unemployed Persons 16 Years and Over and Unemployment Rates, bySex and Color, 1947-69__________________________________________ 125

69. Unemployed Persons and Unemployment Rates, by Sex and Age, 1947-69.. 12670. Unemployed Persons and Unemployment Rates, by Reason, Sex, Age, and

Color, 1967-69_________________________________________________ 12871. Unemployment Rates, by Color, Sex, and Age, 1948-69_________________ 13172. Unemployment Rates, by Sex and Marital Status, 1955-69______________ 13473. Unemployment Rates and Percent Distribution of the Unemployed, by Age,

Sex, and Major Occupation Group, 1966-69_________________________ 13574. Unemployed Persons and Percent Distribution of the Unemployed, by

Duration of Unemployment, 1947-69______________________________ 13775. Long-Term Unemployment Compared with Total Unemployment, by Sex,

Age, and Color, 1957-69______________________________ 13976. Unemployed Persons, by Household Relationship, 1963-69________ 14177. Extent of Unemployment During the Year, by Sex, 1957-68___________ 142

Industry:78. Unemployment Rates and Percent Distribution of the Unemployed, by

Major Industry Group, 1948-69__________________________________ 14479. Long-Term Unemployment, by Major Industry and Occupation Group,

1957-69__________ 146

Insured Unemployed:80. State Unemployment Insurance, 1960-69_____________________________ 14781. The Insured Unemployed, by Industry Division, 1960-69_______________ 14882. The Insured Unemployed, by Major Occupational Group, 1960-69_______ 14883. The Insured Unemployed, by Sex, Age, and Duration of Unemployment

1960-69_______________ 148

Hours84. Average Weekly Hours of Production or Nonsupervisory Workers on Private

Nonagricultural Payrolls, by Industry Division, 1932-69______________ 14985. Average Weekly Hours of Production Workers on Manufacturing Payrolls,

by Major Industry Group, 1947-69_______________________________ 15086. Average Weekly Overtime Hours of Production Workers on Manufacturing

Payrolls, by Major Industry Group, 1956-69________________________ 15287. Indexes of Aggregate Weekly Man-Hours in Industrial and Construction

Activities, 1947-69_____________________________________________ 15388. Average Weekly Hours of Production Workers on Manufacturing Payrolls,

by State, 1947-69______________________________________________ 15589. Scheduled Weekly Hours (Day Shift)Percent of Plant and Office Workers

by Weekly Work Schedule, all Metropolitan Areas, by Industry Division, Selected Periods, 1959-68________________________________________ 157

V I I I



Productivity and Unit Labor Costs90. Indexes of Output Per Man-Hour and Related Data, Private Economy,

1947-69_______ _______________________________________ _______ 15891. Indexes of Output Per Man-Hour, Hourly Compensation, and Unit Labor

Costs in the Private Economy, and Underlying Data, 1947-69_________ 15992. Indexes of Output Per Man-Hour, Man-Hours, and Output, for Selected

Industries, 1939-68_____________________________________________ 161

CompensationWages:

93. General Wage Changes in Major Collective Bargaining Situations, 1954-69__ 16794. Interarea Pay ComparisonsRelative Pay Levels by Industry Division,

1960-69_________________________________________ 16895. Indexes of Union Scales and Weekly Hours in Selected Industries and Trades,

1907-69_________________________________________ 18096. Indexes of Union Wage Scales and Weekly Hours in Selected Building and

Printing Trades, 1907-69_________________________________________ 18297. Indexes of Average Straight-Time Hourly Earnings of Men in Selected Pro

duction Occupations in Nonelectrical Machinery Manufacturing, Selected Metropolitan Areas, 1945-68______________________________________ 190

98. Average Union Scales for Selected Trades, by City, 1947-69_____________ 191

Earnings by Industry:

99. Average Hourly Earnings of Production or Nonsupervisory Workers onPrivate Nonagricultural Payrolls, by Industry Division, 1932-69_______ 203

100. Average Hourly Earnings of Production Workers on Manufacturing Payrolls,by Major Industry Group, 1947-69________________________________ 204

101. Average Weekly Earnings of Production or Nonsupervisory Workers onPrivate Nonagricultural Payrolls, by Industry Division, 1909-69_______ 206

102. Average Weekly Earnings of Production Workers on Manufacturing Payrolls,by Major Industry Group, 1947-69_________________________________ 207

103. Gross and > Spendable Average Weekly Earnings of Production or Nonsupervisory Workers on Private Nonagricultural Payrolls, by Industry Division, 1939-69______________________________________________ 209

104. Average Annual Salaries for Selected Professional, Administrative, andTechnical Occupations, 1961-69___________________________________ 212

Earnings by Region and State:

105. Average Hourly Earnings of Production Workers on Manufacturing Payrolls,by State, 1947-69______________________________________________ 213

106. Average Weekly Earnings of Production Workers on Manufacturing Payrolls,by State, 1947-69______________________________________________ 215

107. Indexes of Average Weekly or Hourly Earnings for Selected OccupationalGroups in Metropolitan Areas, by Region, 1960-69------------------------- 217

108. Average Earnings for Selected Occupations in Metropolitan Areas, byIndustry Division and Region, 1961-69____________________________ 225

109. Number and Average Straight-Time Hourly Earnings of Production Workersin Selected Manufacturing Industries, 1967-69_____________ 242

110. Number and Average Hourly or Weekly Earnings of Employees in SelectedNonmanufacturing Industries, 1965-69_____________________________ 259

111. Indexes of Average Annual Salaries of Public School Teachers in Cities of50,000 or More, by Size of City, 1925-67--------------------------------274

ix



Compensation ContinuedSupplementary Compensation:

112. Health Insurance and Pension Plans, all Metropolitan Areas, by IndustryDivision, 1959-68________________________________________________ 274

113. Paid Vacations, all Metropolitan Areas, by Industry Division, 1967-68____ 276114. Paid Vacations, all Metropolitan Areas, Selected Periods, 1959-68________ 277115. Paid Holidays, all Metropolitan Areas, by Industry Division, Selected Periods,

1959-68______________________________________________________ 277116. Employee Compensation, Private Nonagricultufal Economy, 1966 and 1968-- 278117. Employer Expenditures for Compensation of Production and Related

Workers in Manufacturing Industries, Selected years, 1959-68___________ 281118. Employee Benefit Plans, Coverage, Contributions, and Benefits, 1950-68-_ 282

Social Insurance:119. Old-Age, Survivors, Disability, and Health Insurance Benefits, by type of

Beneficiary, 1940-69____________________________________________ 284

Prices and Living ConditionsConsumer Price Index:

120. Consumer Price Index, U.S. City Average for All Items, 1800-1969, SelectedGroups, and Purchasing Power of the Consumer Dollar, 1913-69________ 285

121. Consumer Price Index, All Items and Major Groups, U.S. City Average,1935-69__________________ 286

122. Consumer Price Index, U.S. City Average, Special Groups, 1935-69_______ 287123. Consumer Price Index, U.S. City Average, All Items and Purchasing Power

of the Consumer Dollar, 1935-69__________________________________ 288124. Relative Importance of Major Groups of the Consumer Price Index, U.S.

City Average, at Dates of Major Weight Revisions___________________ 288125. Consumer Price IndexU.S. City Average for Urban Wage Earners and

Clerical Workers, Food Items, 1935-69____________________________ 289126. Consumer Price Index for Urban Wage Earners and Clerical Workers, Indexes

for Selected Items and Groups Other than Food, 1947-69._____________ 297127. Consumer Price Index, 23 Cities or Standard Metropolitan Statistical Areas,

All Items and Major Groups, 1947-69______________________________ 302128. Estimated U.S. Average Retail Prices for Selected Foods, 1890-1969______ 306

Wholesale Price Index:129. Wholesale Price Indexes, 1926-69___________________________________ 308130. Wholesale Price Indexes, by Durability of Product, 1947-69____________ 317131. Wholesale Price Indexes, by Stage of Processing, 1947-69________________ 318132. Industry-Sector Price Indexes for the Output of Selected Industries, 1957-69. 319

Consumer Expenditures:

133. Average Annual Expenditures, Income, and Savings, All U.S Urban Familiesin 1960-61 Compared with 1950__________________________________ 321

134. Average Annual Income and Expenditures of Families (Two Persons orMore) of City Wage and Clerical Workers, Six Selected Periods Since 1888-91...................... ......... .......... ................................................................... 321

Family Budgets:

135. Annual Costs of a Lower Budget for a 4-Person Family, Spring 1967_____ 322136. Annual Costs of an Intermediate Budget for a 4-Person Family, Spring 1967-_ 323137. Annual Costs of a Higher Budget for a 4-Person Family, Spring 1967______ 324138. Indexes of Comparative Living Costs Based on a Lower Budget for a 4-Person

Family, Spring 1967................................. .................... ............. ...................... 325

x



Prices and Living Conditions ContinuedFamily BudgetsContinued

139. Indexes of Comparative Living Costs Based on an Intermediate Budget for a4-Person Family, Spring 1967_____________________________________ 326

140. Indexes of Comparative Living Costs Based on a Higher Budget for a 4-Person Family, Spring 1967______________________________________ 327

141. Annual Costs of a Lower Budget for a Retired Couple, Spring 1967_______ 328142. Annual Costs of an Intermediate Budget for a Retired Couple, Spring 1967, _ 329143. Annual Costs of a Higher Budget for a Retired Couple, Spring 1967_______ 330144. Indexes of Comparative Costs Based on a Lower Budget for a Retired Cou

ple, Spring 1967.--------------------------------- 331145. Indexes of Comparative Costs Based on an Intermediate Budget for a Retired

Couple, Spring 1967--------------------- 332146. Indexes of Comparative Costs Based on a Higher Budget for a Retired Cou

ple, Spring 1967____________________ 333147. Estimated Annual Costs of Goods and Services for Family Consumption at

Three Levels of Living for Families of Differing Size, Type, and Age, Spring 1967_________________________________________________________ 334

148. Revised Equivalence Scale for Urban Families of Different Size, Age, andComposition___________________________________________________ 335

Unions and Industrial RelationsUnion Membership:

149. Distribution of National and International Unions, by Industry and Affiliation, Selected Years, 1956-68______________________________-______ 335

150. Membership Reported by National and International Unions, by Geographic Area and Affiliation, Selected Years, 1956-68___________________ 338

151. Membership of National and International Labor Unions, 1933-68________ 339152. Union Membership as a Proportion of the Labor Force, 1930-68_________ 339

Work Stoppages:153. Work Stoppages in the United States, 1881-1968_____________________ 340154. Work Stoppages, by Size of Stoppage, 1959-68_______________________ 342155. Duration of Work Stoppages Ending in 1959-68______________________ 343156. Work Stoppages, by Major Issues, 1964-68___________________________ 344157. Work Stoppages, by Industry Group, 1956-68________________________ 349158. Work Stoppages, by State, 1956-68_________________________________ 353

Labor Relations:159. Labor-Management Agreement Coverage, all Metropolitan Areas, Selected

Periods, 1960-68_______________________________________________ 360160. Intake and Disposition of Cases by the National Labor Relations Board,

Fiscal Years 1936-69___________________________________________ 361161. Investigation Findings Under the Fair Labor Standards, Public Contracts

and McNamara-OHara Acts, by Fiscal Year, 1939-69________________ 363

Industrial Injuries162. Work-Injury Rates, by Industry, 1958-68_____ ____ ________________ 364

Foreign Labor Statistics163. Population and Labor Force, Selected Countries and Selected Years, 1950-69. 380

xi



Foreign Labor Statistics Continued164. Labor Force and Unemployment in Selected Industrial Countries, 1959-68-- 383165. Indexes of Unit Labor Cost in Manufacturing for Selected Countries,

1950-68-_______ 384166. Average Hourly Earnings and Average Weekly Hours of Wage Workers in

Manufacturing, Selected Countries, and Selected Years, 1955-69________ 385167. Indexes of Average Hourly Earnings of Wage Workers in Manufacturing,

Selected Countries, 1960-69--------------------------------------------------- 386168. Indexes of Average Real Hourly Earnings of Wage Workers in Manufacturing,

Selected Countries, 1960-69----------- 387169. Indexes of Consumer Prices, Selected Countries, and Selected Years, 1950-69. 387170. Indexes of Wholesale Prices for Selected Countries, Commodities, and Years,

1950-69_______________________________________________________ 388171. Work Stoppages and Time Lost Due to Industrial Disputes in Selected

Countries, 1955-68- ........................... 389

General Economic DataGross National Product:

172. Gross National Product: Annually, 1929-69________________ 390173. Gross National Product in Constant Dollars: Annually, 1929-69__________ 392

National Income:174. National Income by Type of Income: Annually, 1929-69_______________ 394

Distribution of Families by Income:175. Percent Distribution of Families, by Income Level, by Years of School

Completed, and Race of Head, 1963-68____________________________ 396

xii


Technical NotesCurrent Population Survey

(Note: Covers tables 1-37, 50-52, and 68-79)

Collection and CoverageStatistics on the employment status of the

population; the personal, occupational, and other characteristics of the employed, the unemployed, and persons not in the labor force; and related data are compiled for the BLS by the Bureau of the Census in its Current Population Survey (CPS). A detailed description of this survey appears in Concepts and Methods Used in Manpower Statistics from the Current Population Survey, BLS Report 313, available from BLS on request.

These monthly surveys of the population are conducted using a scientifically selected sample designed to represent the civilian noninstitutional population 16 years of age and over. Respondents are interviewed to obtain information about the employment status of each member of the household 16 years of age and over. The inquiry relates to activity or status during the calendar week, Sunday through Saturday, which includes the 12 th of the month. This is known as the survey week. Actual field interviewing is conducted in the following week.

Inmates of institutions and persons under 16 years of age are not covered in the regular monthly enumerations and are excluded from the population and labor force statistics. Data on members of the Armed Forces, who are included as part of the categories total noninstitutional population and total labor force, are obtained from the Department of Defense.

ConceptsEmployed persons comprise: (a) all those who,

during the survey week, worked at all as paid employees, in their own business or profession or on their own farm, or who worked 15 hours or more as unpaid workers in an enterprise operated by a family member; and (b) all those who were

not working but who had jobs or businesses from which they were temporarily absent because of illness, bad weather, vacation, labor-management dispute, or personal reasons, whether or. not they were paid by their employers for the time off, and whether or not they were seeking other jobs.

Each employed person is counted only once. Those who held more than one job are counted in the job at which they worked the greatest number of hours during the survey week.

Included in the total are employed citizens of foreign countries, temporarily in the United States, who are not living on the premises of an Embassy.

Excluded are persons whose only activity consisted of work around the house (such as own home housework and painting or repairing own home) or volunteer work for religious, charitable, and similar organizations.

Unemployed persons comprise all persons who did not work during the survey week, who made specific efforts to find a job within the past 4 weeks, and who were available for work during the survey week. Also included as unemployed are those who did not work at all, were available for work, and (a) were waiting to be called back to a job from which they had been laid off; (b) were waiting to report to a new wage or salary job within 30 days; or (c) would have been looking for work except that they were temporarily ill.

Unemployed persons by reasons for unemployment are divided into four major groups: (1) Job losers are persons whose employment ended involuntarily and thus immediately began looking for work and persons on layoff. (2) Job leavers are persons who quit or otherwise terminated their employment voluntarily and immediately began looking for work. (3) Reentrants are persons who previously worked at a full-time job lasting 2 weeks or longer but who were out of the labor force prior to beginning to look for work. (4) New entrants are persons who never worked at a fulltime job lasting 2 weeks or longer.

1


Duration of unemployment represents the length of time (through the end of the current survey week) during which persons classified as unemployed had been continuously looking for work. For persons on layoff, duration of unemployment represents the number of full weeks since the termination of their most recent employment. A period of 2 weeks or more during which a person was employed or ceased looking for work breaks the continuity of the present period of seeking work. Average duration is an arithmetic mean computed from a distribution by single weeks of unemployment.

The civilian labor force comprises the total of all civilians classified as employed or unemployed in accordance with the criteria described above. The total labor force includes members of the Armed Forces stationed either in the United States or abroad.

The unemployment rate represents the number unemployed as a percent of the civilian labor force. This measure can be computed also for groups within the labor force, classified by sex, age, marital status, color, etc.

Not in the labor force includes all civilians 16 years of age and over who are not classified as employed or unemployed. These persons are further classified as engaged in own home housework, in school, unable to work because of long-term physical or mental illness, and other. The other group includes for the most part retired persons, those reported as too old to work, the voluntarily idle, and seasonal workers for whom the survey week fell in an off season and who were not reported as unemployed. Persons doing only incidental unpaid family work (less than 15 hours) are also classified as not in the labor force. In tables 8 and 9, data on persons not in the labor force are available in greater detail by reason for nonparticipation and may differ from the data in table 7.

Occupation, industry, and class of worker for the employed apply to the job held in the survey week. Persons with two jobs or more are classified in the job at which they worked the greatest number of hours during the survey week. The unemployed in these categories are classified according to their latest full-time civilian job lasting 2 weeks or more. The occupation and industry groups used in data derived from the CPS household interviews are defined in the 1960 Census of

Population. Information on the detailed categories included in these groups is available upon request.

The class-of-worker breakdown specifies wage and salary workers, subdivided into private and government workers, self-employed workers, and unpaid family workers. Wage and salary workers receive wages, salaries, commissions, tips, or pay in kind from a private employer or from a governmental unit. Self-employed persons are those who work for profit or fees in their own business, profession, or trade, or operate a farm. Unpaid family workers are persons working without pay for 15 hours a week or more on a farm or in a business operated by a member of the household to whom they are related by blood or marriage.

Hours of work statistics relate to the actual number of hours worked during the survey week. For example, a person who normally works 40 hours a week but who was off on the Veterans Day holiday would be reported as working 32 hours even though he was paid for the holiday.

For persons working in more than one job, the figures relate to the number of hours worked in all jobs during the week, and all the hours are credited to the longest job.

Persons who worked 35 hours or more in the survey week are designated as working full time; persons who. worked between 1 and 34 hours are designated as working part time. Part-time workers are classified by their usual status at their present job (either full time or part time) and by their reason for working part time during the survey week (economic or other reasons). Economic reasons include slack work, material shortages, repairs to plant or equipment, start or termination of job during the week, and inability to find full-time work. Other reasons include labor disputes, bad weather, own illness, vacations, demands of home housework, school, no desire for full-time work, and full-time worker only during peak season. Persons on full-time schedules include, in addition to those working 35 hours or more, those who worked from 1 to 34 hours for noneconomic reasons but usually work full time.

The full-time labor force consists of persons working on full-time schedules, persons involuntarily working part time (because full-time work is not available), and unemployed persons seeking full-time jobs. The part-time labor force consists of persons working part time voluntarily and unemployed persons seeking part-time work.

2


Persons with a job but not at work during the survey week are classified according to whether they usually work full or part time.

The lower age limit for official statistics on employment, unemployment, and other manpower concepts was raised from 14 to 16 years of age in January 1967. Insofar as possible, the historical series have been revised to provide consistent labor force information based on the population age 16 and over. Where this has not been possible, data for the population age 14 and over have been provided, with two banks of data for the year 1966, containing both population groups.

In addition to changes on the lower age limit, improvements in the methods of measuring employment and unemployment were also introduced in January 1967. The changes in definitions and procedures adopted have increased the accuracy of the statistics and have clarified underlying concepts but have not substantially altered them. These changes have had no perceptible effect on the historical series for the estimates of total and civilian labor force; for total, agricultural,

and nonagricultura! employment; and for age-sex and occupational breakdowns. However, for some analytical purposes, the changes in definition and procedures have affected the comparability of data through 1966 and data for later years. Specifically, they have tended to: (1) increase the number of workers on part time, either voluntarily or for economic reasons, and reduce the number working 35 hours or more; (2) reduce number of nonfarm self-employed persons and increase the number of wage and salary workers; (3) alter the distribution of unemployment by sex, reducing it for adult males and teenagers and raising it for adult females; (4) reduce the number of workers unemployed 15 weeks or longer; and (5) reduce the number of unemployed persons seeking full-time work. For more information on the changes introduced in January 1967, see New Definitions for Employment and Unemployment,n reprinted from the February 1967 E m ploym en t an d E arn in gs an d M o n th ly R eport on the L abor Force, which is available from the BLS on request.

Urban Employment Survey(N ote: Covers tables 53-61)

The statistics for the Urban Employment Survey (UES) were compiled from household interviews of persons 16 years old and over residing in the Concentrated Employment Program (CEP) areas of six cities Atlanta, Chicago, Detroit, Houston, Los Angeles, and New York City. The survey area in New York C ity includes additional target neighborhoods outside the CEP designated areas. The survey also includes the balance of the cities of Atlanta and Detroit.

CEP areas refer to target areas in which the Department of Labor has combined separate manpower programs in order to concentrate their impact in specific neighborhoods. The selection of CEP areas in these six cities was in large part based on the extent of unemployment and poverty in the areas, as shown mostly by the 1960 decennial Census. However, it should be noted that these neighborhoods include a substantial number of persons and families who are not living in slum or poverty conditions and who do not have serious employment problems.

The survey was conducted by the U.S. Bureau of the Census for the BLS with the cooperation

and financing of the Manpower Administration, U.S. Department of Labor. The data were collected by trained Census Bureau interviewers from a sample of about 3,600 households in each of the six UES areas as well as in the balance of Atlanta and Detroit and were accumulated over a 12-month period (July 1968-June 1969).

Information relating to Negroes also include data on a very small proportion of other minority races in five of the areas, about 2 percent of the total Negroes and other races. In Los Angeles, about 10 percent of this total are other minority races mostly Japanese and Chinese.

The ethnic designation, Spanish-American, is based on birth, parentage, or language and differs from data published from other surveys on Spanish Americans based on the designation persons of Spanish surname. In the UES, a person was classified as Spanish-American if he or either of his parents were born in a Spanish speaking country, or if Spanish was frequently spoken by his parents at home when he was a child.

Concepts and definitions used in the Urban Employment Survey are similiar to those used

3


in the Current Population Survey. However, due to different sample and collection methods, data from the two surveys are not directly comparable. For a more detailed discussion of these differences, see Howard Stambler, Problems in Analyzing Urban Employment Survey Data, M o n th ly L abor R eview , November 1969, pp. 51-54.

Data for the six target areas should not be con

fused with data on urban poverty neighborhoods released quarterly by the Bureau of Labor Statistics. The urban poverty neighborhood data relate to the poorest one-fifth of the Census tracts in the 100 largest metropolitan areas combined as of the 1960 Census, whereas the UES data refer only to the very worst of these areas in six individual cities.

Current Employment and Labor Turnover Statistics Programs(N ote: Covers tables 38-44,47-49, 62, 63,84-88, 99-103, and 105, 106)

Data from payroll records, submitted voluntarily by over 160,000 employers, provide (1) current information on wage and salary employment, hours, and earnings in nonagricultural establishments, and (2) labor turnover in manufacturing, by industry and geographic location. These statistical programs are conducted by the Bureau of Labor Statistics in cooperation with State agencies.

CollectionThe two types of data collection documents

used, Form BLS 790 (Monthly Report on Employment, Payroll, and Hours) and Form D L 1219 (Monthly Report on Job Openings and Labor Turnover) are of the shuttle type, with spaces for each month of the calendar year. The cooperating State agencies mail the reporting forms to the participating establishments each month, use the information to prepare State and area estimates, and then send the basic data to BLS in Washington for use in preparing national series.

BLS 790 provides for reporting of data on the number of full- and part-time workers on the payrolls of nonagri cultural establishments for the pay period which includes the 12th of the month. For the same period in most industries, it also provides for reporting data on payroll and man-hours of production and related workers, or nonsupervisory workers. The labor turnover reporting form provides for the collection of data on the total number of accessions and separations that occur during the calendar month.

Concepts and DefinitionsEmployment data refer to persons on estab

lishment payrolls who receive pay for any part

of the reference pay period, and include workers on paid sick leave (when pay is received directly from the firm), on paid holiday or paid vacation, and those who work during a part of the pay period and are unemployed or on strike during the rest of the period. Proprietors, the self-employed, unpaid family workers, farm workers, and domestic workers in households are excluded. Government employment covers civilian employees only.

H ou rs an d earnings data are derived from reports of payrolls and man-hours for production and related workers in manufacturing and mining, construction workers in contract construction, and nonsupervisory employees in the remaining nonfarm components.

The p a yro ll figures relate to full- and part-time production, construction, or nonsupervisory workers who receive pay for any part of the reference period. They are reported before deductions of any kind, e.g., for old-age and unemployment insurance, group insurance, withholding tax, bonds, or union dues. Pay for overtime, holidays, vacations, and paid sick leave is also included.

M an -h ou rs cover hours worked or paid for, during the pay period of reference for production, construction, or nonsupervisory workers. The man-hours include hours paid for holidays and vacations, and for sick leave.

Overtime hours cover premium overtime hours of production and related workers during the pay period. Overtime hours are those for which premiums are paid because the hours were in excess of the number of hours of either the straight-time workday or workweek.

Average hourly earnings are derived by dividing payrolls by man-hours. These averages are on a gross basis, reflecting not only changes in basic hourly and incentive wage rates, but also such variable factors as premium pay for overtime

4


and late-shift work, and changes in output of workers paid on an incentive plan. The earnings series do not measure the level of total labor costs on the part of the employer since the following are excluded: irregular bonuses, retroactive items, payment of various welfare benefits, payroll taxes paid by employers, and earnings for those employees not covered under the production-worker, construction-worker, or nonsupervisory-employee definition.

Average w eekly earnings are obtained by multiplying average weekly hours by average hourly earnings. Weekly earnings are affected not only by changes in gross average hourly earnings, but also by changes in the length of the workweek, part-time work, stoppages for varying causes, labor turnover, and absenteeism.

Labor turnover is the gross movement of wage and salary workers into and out of employed status with respect to individual establishments. This movement, relating to a calendar month, is divided into two broad types: Accessions (new hires and rehires) and Separations (quits, layoffs and other separations). Each type of turnover action is expressed as a rate per hundred employees. The data relate to all employees, whether full or part time, permanent or temporary, production or nonproduction workers.

Job O penings. The Bureau began the collection of job openings information in January 1969 as a part of its labor turnover program. However, initial publication is not planned before mid-1970, and the results are expected to be released for the Ration and selected metropolitan areas.

Benchmark AdjustmentsPeriodically the industry employment series are

adjusted to recent benchmarks (comprehensive counts of employment) to improve their accuracy. These adjustments may also affect the hours, earnings, and labor turnover series since employment levels are used as weights. Industry data for all national series in this edition of the H andbook have been adjusted to March 1968 benchmarks. Consequently, data from April 1968 forward are subject to revision at the time of the next benchmark adjustment. Data shown for the individual States are also subject to revision at the time the

cooperating State agencies adjust their series to later benchmarks.

Uses of DataThe statistics from these surveys are used widely

as timely indicators of changes in economic activity. The turnover rates are valuable for personnel and economic planning; employers frequently use these rates as a yardstick against which to measure the performance of their plants. Firms negotiating long-term supply or construction contracts often utilize series on average hourly earnings as an aid in arriving at an equitable agreement. Both labor and business use the series on hourly earnings and weekly hours in labor-management negotiations. The promptness with which the information is supplied makes it possible to incorporate the estimates in a number of other Federal statistical series, particularly in making current estimates of production, productivity, and national income. The data also are useful as a basis for projection of trends in manpower requirements.

Comparability With Other SeriesTotal employment in nonagricultural establish

ments from the payroll survey is not directly comparable with the Bureaus estimates of nonagricultural employment obtained from the monthly household survey (Current Population Survey). The household survey includes the self- employed, unpaid family workers, and private household workers and is basically a count of persons. The payroll series, in contrast, excludes these workers and is basically a count of jobs. Thus, the multiple jobholder, counted only once in the household survey, would be counted once for each job by the payroll survey. Employment estimates developed by quinquennial censuses may differ from payroll estimates due, primarily, to the reporting practices of multiproduct establishments, and administrative handling of central offices and auxiliary units.

For a more detailed description of these programs see Chapter 2, Employment, Hours, and Earnings, and Chapter 3, Labor Turnover, of the H andbook o f M ethods fo r Surveys and S tu d iesy BLS Bulletin 1458.

386-382 070-------2 5


Wage and Salary Surveys(Note: Covers tables 89, 93-98, 104,107-111, and 159)

In d u stry wage surveys are undertaken in about 50 manufacturing and 20 nonmanufacturing industries on a recurring 3- to 5-year cycle; the majority of industries are surveyed at 5-year intervals. The studies provide information on straight-time earnings, as defined below, for selected production occupations peculiar to the particular industry. Data for some surveys are limited to areas of industry concentration; others include nationwide and regional data.

The studies include information on such establishment practices and related pay provisions as weekly work schedules; shift operations and differentials; the prevalence of paid holidays and vacations; health, insurance, and pension benefits; and other provisions important in the industry. To provide some insight into wage relationships, estimates are made of such employment characteristics as community and establishment size; labor-management agreement coverage, where the majority of workers in an establishment are covered by an agreement; the proportion of workers employed under incentive pay plans, if significant numbers are employed under such plans; and the extent to which single rates or ranges of rates are provided for individual job categories.

A rea wage surveys are undertaken annually in selected metropolitan areas to provide information on straight-time earnings, as defined below, in occupations common to a variety of manufacturing and nonmanufacturing industries. Data also are provided on establishment practices and supplementary wage provisions. These studies are part of a program designed to permit projection of these data to represent all metropolitan areas in the United States. In fiscal year 1965-66, approximately 12,800 establishments employing about8.886.000 workers were included in the Bureaus sample of 84 areas. They were projected to represent 69,500 establishments employing about19.122.000 workers in all 221 Standard Metropolitan Statistical Areas in the United States, as established by the Bureau of the Budget through March 1965. The data are shown also for four broad regions Northeast, South, North Central, and West.

Area survey data are obtained from representative establishments within six broad industry

divisions: (1) Manufacturing; (2) transportation, communication, and other public utilities; (3) wholesale trade; (4) retail trade; (5) finance, insurance, and real estate; and (6) selected services. Excluded from the scope of the studies are the construction and extractive industries and government institutions. The latter exclusion has a significant effect on the public utilities industry division. Municipally operated utilities are excluded, but utilities are included in areas where they are operated privately.

The scope of the studies generally is limited, within each of the six major industry groupings, to establishments which employ 50 workers or more. Smaller establishments are omitted because employment in the occupations studied tends to be insufficient to warrant inclusion.

W hite-collar salaries are studied annually in a national survey of the level and distribution of straight-time earnings, as defined below, in selected professional, administrative, technical, and clerical occupations in private employment. The industry divisions covered are manufacturing; transportation, communication, electric, gas, and sanitary services; wholesale trade; retail trade; finance, insurance, and real estate; engineering and architectural services; and commercially operated research, development, and testing laboratories. Information is provided for a wide range of work levels in accounting, legal services, office services, personnel management, engineering and chemistry, drafting, and clerical occupations. Beginning in1965, the studies relate to establishments in nonmetropolitan counties in addition to those in metropolitan areas, to which the earlier surveys were limited. In the period 1961-65, establishments employing 250 workers or more were covered in all industries within scope of the survey. In1966, the 250 establishment-size coverage was retained for manufacturing and retail trade, but lowered to 50 in finance, insurance, and real estate, and to 100 in all other industries studied.

U nion wage scales and hours for selected journeymen, helper, and laborer classifications are studied annually in four highly unionized industries building construction, local transit, local trucking, and printing. The number of cities surveyed has varied over the years from 39 to the present coverage of 68 cities with 100,000 population or more.

6


A ll cities of 500,000 population or more, and most cities in the 250,000 to 500,000 group, are now included in the surveys.

The data relate to the basic (minimum) wage rates agreed upon through collective bargaining, exclusive of holiday, vacation, or other benefit payments, and to the maximum number of hours per week at straight-time rates. Rates in excess of the negotiated minimum, that may be paid for special qualifications or other reasons, are excluded from the studies.

The average hourly union wage rates provided by city in building construction and trucking since 1947, and in printing and local transit since 1949, are calculated by weighting each quotation for the year by the number of union members reported at that time as working or available for work. Unlike the index series, the averages do not measure the trend of union wage rates, but are designed to provide comparisons among trades and cities at a given time.

Distributions of employee earnings and hours are prepared periodically to provide information on the internal structure of wages and hours of all nonsupervisory employees in selected broad industry groups or specific industries, and in selected areas, usually on a cross-industry basis. The data relate to straight-time hourly earnings, as defined below, and weekly hours of work, including those leave hours (holidays, vacations, or sick leave) for which pay is received.

Straight-time earnings. (Industry wage surveys, area wage surveys, white-collar salary surveys, union wage scale surveys, earnings distribution surveys).

Unless otherwise indicated, the data relate to the regular day-shift wages or salaries paid per hour worked or standard workweek, exclusive of premium pay for overtime and for work on weekends, holidays, and late shifts. Incentive pay, production bonuses, and cost-of-living payments

are included in earnings, but nonproduction bonuses (e.g., Christmas bonuses) are not. Straight-time earnings thus are reflected in the index measures and interarea pay comparisons.

Supplementary wage provisions. (Industry wage surveys, area wage surveys, white-collar salary surveys).

Estimates of the prevalence of the selected provisions are derived by applying the particular provision to all plant and office workers of an establishment when the provision was applicable to a majority of those workers. The data, therefore, do not provide estimates of the percentage of workers affected by a particular provision, but rather the percentage that could be affected if specified qualifications, such as length of service, were met. Paid vacations. The data are limited to basic plans and exclude such plans as vacation savings or those which offer extended or sabbatical benefits. Holidays. Partial holidays are combined (8 half-holidays equal 4 days, etc.). Health, insurance, and retirement plans. The data relate only to those plans not legally required and for which at least a part of the cost is borne by the employer.

Regions. (Industry wage surveys, area wage surveys). Unless otherwise indicated, the regions are defined as follows:

Northeast Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont; South Alabama, Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia; North Central Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin; West Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming.

Employer Expenditures for the Compensation of Employees(Note: Covers tables 112-117)

The first studies of employer expenditures for employee compensation were undertaken in 1959, and related to manufacturing industries. The program is now designed to cover all employees in the total private nonfarm sector.

The studies relate to cash disbursements of employers during a calendar year. The expendi

ture data are presented as a percent of compensation, in cents per hour paid for, and in cents per plant hour, for all establishments, and for establishments that actually had an expenditure during the survey year. The major elements of compensation in American industry are considered to be covered by the expenditure practices

7


studied. The expenditures fall into two broad groups: payments made directly to workers, and employer expenditures made in addition to payroll. Payments to workers include straight-time pay for time worked and supplementary payments for paid leave time; premiums for overtime, weekend, holiday and shift work; nonproduction bonuses; and terminal payments. Expenditures in addition to payroll are those for which the employer irrevocably makes a payment under the

provisions of a legally-required insurance program or private welfare plan; e.g., social security, unemployment compensation, workmens compensation, and other insurance for the benefit of the workers, required by law; life, accident, and health insurance; pension and retirement plans; vacation and holiday funds; severance and supplemental unemployment benefit plans; and savings and thrift plans.

Productivity( N o t e : Covers tables 90-92)

The measures of output per man-hour in the private economy refer to the ratio between constant- dollar gross national product (GNP) originating in the private sector of the economy or individual sectors, and the corresponding hours of all persons employed.

Two series of output per man-hour estimates have been developed. One series is based on labor force data from surveys of households, conducted by the Bureau of the Census for the Bureau of Labor Statistics. The other series is based primarily on BLS surveys of establishments.

The output measure (GNP) used in preparing both series represents the market value (in 1958 dollars) of final goods and services produced in the economy. It includes the purchases of goods and services by consumers, business establishments, foreign investors, and the various government agencies. The GNP data are prepared by the Office of Business Economics, U.S. Department of Commerce.

As mentioned above, two sets of estimates of labor input have been developed. The labor force series uses an hours worked concept, and excludes hours of persons employed but not at work due to vacations, illness, and other reasons. The establishment series is based on an hours paid concept and includes the hours of all persons on establishment payrolls in the private economy.

In developing both the labor force and establishment man-hour series, it was necessary to adjust and supplement the basic data. For the labor force series, two major adjustments were made as follows: General government hours were subtracted from total man-hours to make output and input measures consistent, and an adjustment Was made to eliminate the effect of holidays which occur during the survey week; for the establish

ment series, data from the labor force reports and national income series were used to supplement the BLS payroll series data.

These measures relate output to man-hours and to employment. They do not reflect the specific contributions of labor, capital, or any other factors of production. Rather, they measure the combined effect of a number of interrelated influences, such as skills of workers, managerial skills, changes in technology, capital investment per worker, utilization of capital, layout and flow of materials, and labor-management relations.

The indexes of hourly compensation and unit labor costs in the private economy were developed from a man-hours estimate based on the establishment series, described in the previous section. Compensation includes wages and salaries, plus supplemental payments such.as contributions of employers to social security and private health and pension funds. The all persons compensation data include an estimate for proprietors salaries and contributions for supplementary benefits. Real compensation per man-hour was derived by adjusting the compensation data by the Consumer Price Index to reflect changes in purchasing power.

The indexes of unit labor costs were developed by dividing compensation per man-hour by output per man-hour. Nonlabor payments represent the difference between total compensation and the gross national product (in current dollars) originating in the private sector of the economy.

The implicit deflator reflects changes in all of the costs of production and distribution (unit labor costs plus unit nonlabor payments). The deflator is derived by dividing the current dollar estimate of gross product originating by the constant dollar estimate.

Data, on output per man-hour in selected industries

8


contain industry indexes of output, man-hours, and output per man-hour for selected U.S. manufacturing and nonmanufacturing industries, covering the years 1939 and 1947 through 1968. The industries included here are not necessarily a representative cross section of U.S. industry, and their output per man-hour indexes, therefore, should not be combined to obtain an overall measure for the entire economy or any sector. Each index represents only the change in output per man-hour for the designated industry or combination of industries.

Output indexes are based primarily on the physical output of the products of the industry, combined with fixed period weights. Although unit man-hour weights are preferred and used whenever possible, it is often necessary to use substitute weights which are assumed proportional to unit man-hour weights. Unit value weights generally are substituted when unit man-hour weights are not available. Since the most comprehensive physical output data usually are available from the Censuses of manufactures and minerals, benchmark output indexes are derived from data for 2 consecutive censuses. For intercensal years, annual indexes are based on either physical output data or value of output adjusted for price change.

The annual series subsequently are adjusted to the Census benchmark levels.

Indexes of man-hours are computed by dividing the aggregate man-hours for each year by the base period aggregate. Man-hours are treated as homogeneous and additive.

Output per man-hour indexes are obtained by dividing an output index by an index of aggregate man-hours.

Although the measures relate output to one input labor time they do not measure the specific contribution of labor or any other factor of production. Rather, they reflect the joint effect of a number of interrelated influences, such as changes in technology, capital investment per worker, and capacity utilization. Industry output per man-hour measures are limited to the extent that they do not account for quality change, and often do not reflect adequately changes in the degree of plant integration and specialization. In addition, there is not always strict comparability between output and labor input estimates. Finally, year-to-year changes in output per man-hour are irregular, and therefore, not necessarily indicative of basic changes in long-term trends. Conversely, long-term trends are not necessarily applicable to any one year or period in the future.

Consumer Prices(Note: Covers tables 120-128)

The Consumer Price Index (C P I)1 measures the average change in prices of all types of consumer goods and services purchased by city wage- earners and clerical workers. The weights used in calculating the index, which remain fixed for relatively long periods, are based on studies of actual expenditures by wage earners and clerical workers. The quantities and qualities of the sample items in the flmarket basket remain the same between consecutive pricing periods, so that the index measures only the effect of price change on the cost of living. The index does not measure changes in the total amount families spend for living; city indexes do not measure relative differences in prices or living costs between cities.

A study conducted during 1917-19 provided the weights used for 1913 to 1935. Since then, this index has undergone four major revisions, which

1 A detailed description of the C PI Is contained In The Consum er Price Index: H istory and Techniques (BLS Bulletin 1517).

involved bringing the market basket of goods and services up to date, revising the weights, and improving the sample and methodology. The most recent revision, incorporated in a new series beginning in 1964, introduced weights relating to expenditures for the period 1960-61.

The list of items currently priced for the index includes approximately 400 goods and services. The items priced are described by detailed specifications to insure that, as far as possible, the same quality is priced each time, and that differences in reported prices are measures of price change only. Sales taxes are reflected wherever applicable.

Since 1966, prices have been obtained in a sample of 56 areas, on a regular monthly or quarterly cycle. These include the urban portions of 37 Standard Metropolitan Statistical Areas (SMSA), the more extensive Standard Consolidated Areas for Chicago and New York, and 17 nonmetropolitan urban places. Price changes for

9


the 56 areas are combined for the United States, and the weights are based on 1960 population of areas represented by each sample area. Area indexes are compiled for 23 of the 56 areas.

Notes on TablesTables 120-123 Indexes from 1800 through

1912 are estimates, based on price data from sources other than BLS. The purchasing power of the consumer dollar (1957-59=$1) for any given date is calculated as the reciprocal of the index for that date, expressed in dollars. It shows changes in the value of the 1957-59 dollar resulting from changes in prices of consumer goods and services. Purchasing power of the dollar with reference to other bases can be calculated by dividing the index for the desired base date by the index for the current date and expressing the result in dollars.

Table 124 The relative importance figures shown in this table are percentage distributions of the cost or value weights used in the index calculation. At the time of their introduction, after a major weight revision, the cost weights represent average expenditures for specific classes of goods and services by urban wage earners and clerical workers. However, in subsequent pricing periods, the value weights and the corresponding relative importance figures change as prices change differentially, i.e., the relative importance increases for an item or group having a greater than average price increase and decreases for one having a less than average price increase. Since the index measures only price change, the cost weights eventually become unrepresentative of actual expenditures and must be revised on the basis of new surveys of consumer expenditures.

Table 125 Indexes for individual foods are

based on monthly prices obtained in all cities in the index sample.

Table 126 Since 1964, quarterly indexes for individual items other than food have been based on the latest available prices in all cities in the sample. For example, an index for December includes prices in all cities surveyed in December, as well as October and November prices in cities surveyed quarterly in those months. From 1947 to 1963, indexes were based only on prices in the cities surveyed in March, June, September, and December. From 1935 to 1946, all cities in the sample were surveyed on the March, June, September, December cycle.

Table 127 City indexes show only different rates of price change among cities. They do not show whether prices are higher in one city than in another.

Table 128- Average retail food prices are published regularly for 94 items in E stim a ted R eta il Food P rices by C ities. Since July 1967 this report has included prices for the United States and for 23 large metropolitan areas. Prices are collected primarily for use in measuring month-to-month changes in food prices as a component of the CP I and are not entirely suitable for calculating average prices. Variations in food habits, brands, sizes, and qualities included in the index, cause differences in computed average prices that do not represent real price differentials. To meet the need for dollars and cents prices, procedures have been devised to calculate estimated prices. Briefly, the procedure provides for the annual calculation of benchmark prices for defined qualities using special editing, and adjusting these each month by the price changes reflected in the index.2

2 For a more detailed description of the calculation procedure, see Calculation of Average Retail Food Prices, M onthly Labor R eview , January 1965.

Wholesale Prices( N o t e : Covers tables 129-132)

Wholesale Price IndexesThe Wholesale Price Index (W PI) is designed

to measure changes in prices of commodities sold in primary markets in the United States. Wholesale, as used in the title of the index, refers to sales in large quantities, not to prices received by wholesalers, jobbers, or distributors.

The W PI universe consists of all commodities produced or imported for sale in commercial transactions in primary markets in the United States. Currently most actual price quotations are obtained on a sample of about 2,500 items from manufacturers or other producers.

Prices are usually f.o.b. production or central marketing point, and net of applicable discounts.

10


However, a few prices are reported by trade associations and organized exchanges, and some are taken from trade publications or obtained from other Government agencies which collect quotations as part of their regular work. Since the index is intended to measure pure price change, that is, not influenced by changes in quality, quantity, shipping terms, product mix, etc., commodities included in the index are defined by precise specifications which incorporate price determining characteristics of the commodities.

The W PI is calculated as a weighted average of price changes and has been shown on the reference base 1957-59 since January 1962. The weights represent the total net selling value of commodities produced and processed in this country (or imported for sale), and flowing into primary markets. The values are f.o.b. production point and are exclusive of excise taxes. The values of interplant transfers, military production, and goods sold to household consumers directly by producing establishments are excluded. Each commodity price series in the index is representative of a class of prices and is assigned its own weight (the shipment value of the commodity) plus the weights of other commodities not priced directly but whose prices are known or assumed to move similarly. The weighting structure is revised periodically when data from industrial censuses become available, generally at 5-year intervals. Beginning with the January 1967 data, the Wholesale Price Index weights are based on 1963 shipment values of commodities as reported in the industrial censuses.

The commodities in the W PI are classified by similarity of end-use or material composition rather than by industry of origin. In recent years, emphasis has been placed on development of more subdivisions within major groups and special combinations of indexes, such as by Stage of Processing and Durability of Product.

The Stage of Processing indexes are constructed by combining segments of the Bureaus regular comprehensive W PI, primarily in accordance with the amount of processing, manufacturing, or assembling to which commodities are subjected before they enter the market. The weights used in the regular W PI classification system are distributed in accordance with the relative importance of the output of each commodity which is consumed at various levels of processing.

The Durability of Product indexes were constructed to provide price indexes which could be

used in conjunction with other important economic series, such as production or inventory data classified according to durability. The indexes are made by combining segments of the Bureaus regular comprehensive W PI and embrace all its components.

The Wholesale Price Index is used for many purposes, including market analysis, escalation of long-term purchase and sales contracts, and measurement of general price trends. Many users employ the group and individual commodity indexes rather than the All Commodities index. The W PI is based on a purposive, judgment sample. Thus, the All Commodities index can be assumed to be more reliable than component group indexes. Also, the reliability of the index has increased over time as the sample has expanded. In 1952, the sample of priced items doubled to about 1,850 items and since then has increased to about 2,500 items.

Industry-Sector Price IndexesIndustry-sector price indexes were inaugurated

with the annual average indexes for 1957 through 1963. (See M o n th ly Labor Review, August 1965.) Indexes for selected industries and for their important product classes are currently published in W holesale P rices an d P rice Indexes.

An industry price index is a composite index, derived from several price series combined to match the economic activity of a specified industry or sector. The indexes published here are industrial output price indexes; they measure average changes in prices of commodities produced by a particular industry as defined by the Standard Industrial Classification of the Bureau of the Budget.

Industry indexes are relevant to studies of economic growth, productivity, and other types of economic analysis where the emphasis is on industrial structure as distinct from market or commodity-use classifications. One of their important uses is to deflate value of shipments data in order to derive measures of output in constant dollars. They also are useful for comparing industry price movements with other industry-based statistics of employment, production, and productivity, and for projecting price changes in studies of given industries.

The 4-digit indexes are built up from indexes for the individual commodities made in an in-

11


dustry including its secondary products. The product indexes, weighted by the total value of their shipments, regardless of industry of origin, are combined into 5-digit census product class indexes. (Data for product shipments by individual industries are not available.) The product class indexes are, in turn, combined into 4-digit industry indexes. At this step, the weights are value of shipments (by product class) originating within the particular industry.

Through 1966, the industry indexes are based on gross value of shipments in 1958 as reported in the Censuses of Manufactures and Mineral In dustries. The values include interplant transfers, goods produced and consumed in the same establishment, and goods sold for export. Imported commodities are not included. Beginning with the January 1967 indexes, ISP I weights are based on data from the 1963 censuses. The weighting structure is revised whenever comprehensive data from the industrial censuses become available.

The selection of items to be priced is purposive rather than being based on probability techniques. The objective is to represent 50 percent or more of the value of commodities included in each 5- digit census product class by pricing one or more specifications of its most important products. An industry meets the minimum standards for pub

lication if 90 percent, by value, of its component 5-digit product classes satisfy the criteria for product class sampling. The sampling criteria may be modified if price variability within product classes or industries varies significantly from the average.

Because the current price collection for the industry-sector program initially was designed around the W PI structure, the sample in most industries is not strong enough to permit publication of industry indexes. As of December 1966, only 52 industries were covered adequately. As of January 1967, adequate coverage was extended to 15 additional industries, and by January 1969, 98 industries were covered. Further extension of industry coverage is proposed as resources permit.

Pending additional pricing of commodities, industry indexes will be limited by the coverage commodity and class of customer of the comprehensive Wholesale Price Index. It must be assumed that the W PI prices, which are generally at the primary market level, are similar to the market level of sales represented by the Census data used as weights. Since the data include values of interplant transfers and values of goods produced and consumed in the same industry, it is also necessary to assume that changes in those values are represented by price movements of goods in commercial markets.

Consumer Expenditures(N ote: Covers tables 133-134)

The 1960-61 information in this series is based on reports from a representative sample of all urban and rural families in the United States. Data were collected jointly by the Bureau of Labor Statistics (BLS) and the U.S. Department of Agriculture (USDA) as part of a nationwide Survey of Consumer Expenditures (CES). The survey was conducted in 2 years in 1961, covering fam ilyexpenditures and income in urban places in the calendar year 1960, and in 1962, providing data on urban, rural nonfarm, and rural farm families for 1961. The CES classification of families by place of residence (i.e., urban or rural) follows the definitions adopted for the 1960 Census of Population.

A ll data were collected by personal interviews, through the voluntary cooperation of families. The family, or consumer unit (C U ), referred to(1) a group of people usually living together who pooled their income and drew from a common fund for their major items of expense, or (2) a

person either living alone or in a household whose income and expenditures were not pooled with others.

The sample, for the total urban and rural population, included 17,283 living quarter addresses which were assigned to interviewers. Usable schedules were obtained and tabulated for 13,728 families.

To describe the spending and saving of all families in the United States, data from the CES samples were combined to obtain regional and U.S. averages. This was accomplished by applying a system of weights, based on the 1960 Census of Population, to the sample data.

Information obtained from a sample survey as complex as the CES is subject to many types of errors: Sampling, recording, and processing errors, and errors due to the refusal or inability of some families to give the information requested. A ll data were reviewed, edited, and screened to minimize processing errors. The BLS computed sam-

12


pling errors and evaluated selected characteristics of nonrespondents.1

Particular care is required in using the averages for families at the extremes of the income scale. These averages are based on small numbers of families who may differ sharply in their spending patterns.

The averages and percentages in the accom

panying tables are based on all families included in each class, whether or not they reported receipts or disbursements for a particular item. Averages were calculated by dividing the aggregate amount of income, expenditures, or savings by the total number of families in h^e class. Since all averages for a class are based on a common divisor, they are additive.

Family Budgets(Note: Covers tables 135-148)

The budgets for both the 4-person family and the retired couple are estimates of the total costs of representative lists of goods and services based on the manner of living and consumer choices in the 1960s. They provide three levels of living described as lower, intermediate, and higher for each of the family types in urban areas of the United States.

The quantities of goods and services included in the budgets were derived from two kinds of data: (1) Nutritional and health standards determined by scientists and technicians; and (2) analytical studies of the data revealed by surveys of consumer expenditures. Nutritional and health standards were used for food, housing, and medical care components. For other categories of consumption the analytical technique developed relied on the collective judgments of families as to the kinds and amounts of consumption required, rather than upon objective standards.

The intercity indexes based on the BLS budgets, within each level of living, reflect differences among areas in price levels, climatic or regional differences in the quantities and types of items required to provide the specified level, and differences in State and local taxes. Intercity indexes

are comparative living cost indexes and no* comparative price indexes. Differences in housing costs are based on average costs of occupied owned or rented dwellings. The differences in the cost of food reflect differences in price levels as well as differences in regional preference patterns in the choice of food.

Equivalent income or family equivalence scales are measures to determine the relative income required by families differing in composition to maintain the same level of living. The scale values may be applied to estimates of the cost o f goods an d services ( i.e ., fa m ily consum ption) in the budgets for a 4-person family to estimate comparable costs for urban families of other sizes, ages, and types.

The scale in table 139 assumes that families spending the same proportion of income on food have attained equal levels of living. It was derived from special tabulations of average income after taxes and average food expenditures per family for specified categories of urban families cooperating in the Bureaus Survey of Consumer Expenditures, 1960-61.

For a complete report on family budgets see BLS Bulletin Series 1570.

Union Membership( N o t e : Covers tables 149-152)

The Bureaus membership survey includes all affiliates of the A FL -C IO , all unaffiliated national unions, and all unaffiliated unions which are party to collective bargaining agreements with different employers in more than one State. The

1 For a general description of the survey methods, see Chapter 8, B L S Handbook o f M ethods for Surveys and Studies (BLS Bulletin 1458).

study excludes unions whose activities are confined to a single locality or to a single employer. In addition, the survey accounts for all unions of Federal Government employees that have received exclusive recognition , as specified in Executive Order 10988.

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Work Stoppages(Note: Covers tables 153-158)

The work stoppage series covers all strikes and lockouts known by the Bureau and its cooperating agencies to continue for 1 full day or shift or longer, and to involve six workers or more. For purposes of the studies, a strike is defined as a temporary stoppage of work by a group of employees to express a grievance or enforce a demand. A lockout is defined as a temporary withholding of work by an employer (or group of employers) to enforce terms of employment upon a group of employees. Since 1922, no attempt has been made to distinguish between strikes and lockouts; both types are included in the term work stoppage.

All stoppages, whether or not authorized by the union, legal or illegal, are counted. The series excludes, however, strikes of American seamen or other workers in foreign ports, and strikes of foreign crews in American ports. Also excluded are so-called slowdowns, in which employees continue to work but at deliberately reduced production speed. In addition, instances in which workers report an hour or two late each day as a protest gesture or leave work several hours before closing time to attend rallies or mass meetings are excluded.

industrial Injuries(N ote: Covers table 162)

These data were compiled according to the national consensus standard. The current version of the standard is the U .S .A . S tandard M ethod of Recording and M easu rin g W o rk -In ju ry E xperience, 1967, approved by the American National Stand

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