By Cornelia J. Strawser, Mary Meghan Ryan, Mark Siegal, Katherine A. Debrandt
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Extra info for Business Statistics of the United States, 2006
5 percent rate; however, median earnings were nearly stagnant, median household income declined, and the poverty rate rose by 1 percentage point. 9 percent. 4 percentage points. It has been recently argued that median income and poverty lag behind the business cycle. Examination of Figure 3-1 will show that while this is indeed the case, the lags have been getting longer in recent years. The years 2000–2004 comprised the first span in which median income declined four years in a row. Inflation and unemployment A number of important price indicators are presented in Business Statistics, both in Chapter 8: Prices and Table 1-4, which shows chain-type price indexes for GDP and various subsectors.
Despite the fact that unit labor costs rose at about the same rate as the price (implicit deflator) for the sector as a whole over the 1967–2000 period, “real” compensation per hour, as calculated and published by the Bureau of Labor Statistics and shown here, fell short of productivity. S. corporations produce. Business sector output includes a substantial proportion of high-tech products, which have had dramatic price declines. Workers, on the other hand, buy proportionately fewer computers and other high-tech products and more commodity-based products, including imports.
In both recession-recovery periods, unit labor costs lagged behind the change in output prices while unit profits expanded. The rise in real compensation in 2000–2004 represented a substantial improvement over both of the previous periods shown, yet lagged farther than ever behind the astonishing increase in productivity. Whose standard of living? So far, this article has been concerned with averages— average GDP per capita, average output and real compensation per hour worked, and so forth. It is important to note that an average, known technically to statisticians as a “mean,” is only one way of describing the central tendency of any set of statistical data, and is not necessarily the one that produces the most representative number.
Business Statistics of the United States, 2006 by Cornelia J. Strawser, Mary Meghan Ryan, Mark Siegal, Katherine A. Debrandt