Figure H
Rising labor costs spur productivity growth: 2-year change in labor share of corporate-sector income and subsequent productivity growth, 1951–2013
| Date | Productivity growth | Labor share of corporate-sector income |
|---|---|---|
| 1951Q1 | 3.84% | -1.47% |
| 1951Q2 | 3.98% | -1.75% |
| 1951Q3 | 2.75% | -0.83% |
| 1951Q4 | 2.60% | -2.94% |
| 1952Q1 | 2.45% | 0.02% |
| 1952Q2 | 2.83% | 2.29% |
| 1952Q3 | 3.42% | 3.81% |
| 1952Q4 | 3.22% | 3.58% |
| 1953Q1 | 3.15% | 2.23% |
| 1953Q2 | 3.12% | 2.18% |
| 1953Q3 | 3.05% | 2.67% |
| 1953Q4 | 2.94% | 6.09% |
| 1954Q1 | 2.65% | 3.28% |
| 1954Q2 | 2.25% | 1.64% |
| 1954Q3 | 1.53% | 0.34% |
| 1954Q4 | 1.87% | 0.28% |
| 1955Q1 | 1.62% | -1.39% |
| 1955Q2 | 1.28% | -2.04% |
| 1955Q3 | 1.66% | -1.97% |
| 1955Q4 | 2.42% | -5.10% |
| 1956Q1 | 2.38% | -2.59% |
| 1956Q2 | 2.72% | -1.62% |
| 1956Q3 | 3.53% | -0.34% |
| 1956Q4 | 3.14% | 0.91% |
| 1957Q1 | 3.03% | 2.32% |
| 1957Q2 | 3.13% | 2.95% |
| 1957Q3 | 3.10% | 2.84% |
| 1957Q4 | 2.72% | 4.01% |
| 1958Q1 | 4.04% | 4.46% |
| 1958Q2 | 2.70% | 3.49% |
| 1958Q3 | 1.93% | 1.96% |
| 1958Q4 | 1.31% | 0.21% |
| 1959Q1 | 1.43% | -0.03% |
| 1959Q2 | 2.72% | -1.53% |
| 1959Q3 | 2.86% | -0.22% |
| 1959Q4 | 3.14% | -1.14% |
| 1960Q1 | 2.24% | -3.60% |
| 1960Q2 | 3.18% | -1.57% |
| 1960Q3 | 3.74% | -0.19% |
| 1960Q4 | 4.39% | 2.06% |
| 1961Q1 | 4.25% | 2.90% |
| 1961Q2 | 3.12% | 2.55% |
| 1961Q3 | 3.51% | 0.28% |
| 1961Q4 | 3.22% | -0.93% |
| 1962Q1 | 3.70% | -0.08% |
| 1962Q2 | 3.51% | -0.97% |
| 1962Q3 | 3.34% | -1.51% |
| 1962Q4 | 2.68% | -2.52% |
| 1963Q1 | 3.00% | -2.79% |
| 1963Q2 | 2.78% | -2.16% |
| 1963Q3 | 2.90% | -1.70% |
| 1963Q4 | 3.40% | -0.73% |
| 1964Q1 | 3.21% | -1.52% |
| 1964Q2 | 2.99% | -1.72% |
| 1964Q3 | 2.62% | -1.40% |
| 1964Q4 | 3.08% | -0.72% |
| 1965Q1 | 2.72% | -2.10% |
| 1965Q2 | 2.90% | -1.67% |
| 1965Q3 | 2.04% | -1.53% |
| 1965Q4 | 1.59% | -1.97% |
| 1966Q1 | 1.96% | -1.48% |
| 1966Q2 | 2.57% | -0.97% |
| 1966Q3 | 2.53% | -0.30% |
| 1966Q4 | 2.26% | -0.56% |
| 1967Q1 | 2.15% | 1.29% |
| 1967Q2 | 1.85% | 1.70% |
| 1967Q3 | 1.85% | 1.87% |
| 1967Q4 | 1.60% | 1.99% |
| 1968Q1 | 0.97% | 2.67% |
| 1968Q2 | 1.00% | 1.66% |
| 1968Q3 | 1.85% | 1.24% |
| 1968Q4 | 1.55% | 1.24% |
| 1969Q1 | 2.62% | 1.15% |
| 1969Q2 | 2.74% | 1.62% |
| 1969Q3 | 3.07% | 2.12% |
| 1969Q4 | 3.04% | 3.42% |
| 1970Q1 | 2.88% | 4.30% |
| 1970Q2 | 3.39% | 3.93% |
| 1970Q3 | 2.65% | 3.80% |
| 1970Q4 | 3.42% | 4.37% |
| 1971Q1 | 2.85% | 2.47% |
| 1971Q2 | 2.80% | 1.79% |
| 1971Q3 | 1.77% | 0.87% |
| 1971Q4 | 2.21% | -0.36% |
| 1972Q1 | 1.56% | -1.70% |
| 1972Q2 | 0.95% | -0.96% |
| 1972Q3 | 0.33% | -1.35% |
| 1972Q4 | 0.13% | -2.46% |
| 1973Q1 | 0.02% | -1.05% |
| 1973Q2 | 0.57% | -0.40% |
| 1973Q3 | 1.67% | 0.08% |
| 1973Q4 | 1.40% | 0.19% |
| 1974Q1 | 2.44% | 1.10% |
| 1974Q2 | 2.37% | 1.10% |
| 1974Q3 | 2.90% | 1.87% |
| 1974Q4 | 2.62% | 2.62% |
| 1975Q1 | 2.40% | 2.35% |
| 1975Q2 | 1.75% | 0.39% |
| 1975Q3 | 1.65% | -1.41% |
| 1975Q4 | 1.15% | -1.25% |
| 1976Q1 | 0.61% | -2.80% |
| 1976Q2 | 0.84% | -2.14% |
| 1976Q3 | 1.09% | -2.34% |
| 1976Q4 | 1.17% | -2.14% |
| 1977Q1 | 0.82% | -2.04% |
| 1977Q2 | 0.93% | -1.99% |
| 1977Q3 | 0.18% | -1.16% |
| 1977Q4 | 0.63% | -0.47% |
| 1978Q1 | 0.97% | 1.31% |
| 1978Q2 | 0.05% | -1.11% |
| 1978Q3 | -0.15% | -1.24% |
| 1978Q4 | 0.13% | -1.72% |
| 1979Q1 | 1.02% | -0.35% |
| 1979Q2 | 0.80% | 1.24% |
| 1979Q3 | 1.91% | 2.69% |
| 1979Q4 | 1.06% | 2.46% |
| 1980Q1 | 0.68% | 1.73% |
| 1980Q2 | 1.00% | 4.81% |
| 1980Q3 | 1.10% | 3.93% |
| 1980Q4 | 1.08% | 2.59% |
| 1981Q1 | 0.55% | 1.13% |
| 1981Q2 | 1.30% | 0.78% |
| 1981Q3 | 0.73% | -0.76% |
| 1981Q4 | 2.05% | -0.40% |
| 1982Q1 | 2.21% | 0.28% |
| 1982Q2 | 2.48% | -1.79% |
| 1982Q3 | 2.61% | -1.06% |
| 1982Q4 | 2.47% | 0.68% |
| 1983Q1 | 2.30% | 0.65% |
| 1983Q2 | 1.80% | -0.43% |
| 1983Q3 | 2.15% | -0.12% |
| 1983Q4 | 1.80% | -1.33% |
| 1984Q1 | 2.25% | -3.62% |
| 1984Q2 | 2.13% | -2.81% |
| 1984Q3 | 2.23% | -2.40% |
| 1984Q4 | 1.84% | -2.94% |
| 1985Q1 | 1.46% | -2.53% |
| 1985Q2 | 1.73% | -1.32% |
| 1985Q3 | 1.46% | -1.14% |
| 1985Q4 | 1.42% | 0.58% |
| 1986Q1 | 1.05% | 2.13% |
| 1986Q2 | 0.95% | 2.82% |
| 1986Q3 | 0.76% | 3.13% |
| 1986Q4 | 1.06% | 3.53% |
| 1987Q1 | 1.32% | 3.41% |
| 1987Q2 | 1.00% | 2.38% |
| 1987Q3 | 1.02% | 2.18% |
| 1987Q4 | 0.81% | 1.40% |
| 1988Q1 | 1.15% | 1.02% |
| 1988Q2 | 1.67% | 0.13% |
| 1988Q3 | 1.44% | -0.75% |
| 1988Q4 | 1.02% | -1.63% |
| 1989Q1 | 1.12% | -1.12% |
| 1989Q2 | 1.63% | -0.09% |
| 1989Q3 | 1.51% | 0.50% |
| 1989Q4 | 1.92% | 0.89% |
| 1990Q1 | 2.16% | 0.77% |
| 1990Q2 | 1.97% | 0.66% |
| 1990Q3 | 2.48% | 1.80% |
| 1990Q4 | 2.99% | 2.92% |
| 1991Q1 | 2.59% | 1.53% |
| 1991Q2 | 1.69% | 1.63% |
| 1991Q3 | 1.65% | 1.88% |
| 1991Q4 | 1.72% | 1.46% |
| 1992Q1 | 1.20% | 1.28% |
| 1992Q2 | 0.84% | 1.63% |
| 1992Q3 | 0.16% | 1.10% |
| 1992Q4 | 0.28% | 0.05% |
| 1993Q1 | 0.30% | 1.47% |
| 1993Q2 | 0.71% | 0.43% |
| 1993Q3 | 0.55% | 0.07% |
| 1993Q4 | 0.66% | -1.69% |
| 1994Q1 | 1.02% | -1.41% |
| 1994Q2 | 1.44% | -1.78% |
| 1994Q3 | 1.68% | -2.89% |
| 1994Q4 | 1.35% | -2.70% |
| 1995Q1 | 1.67% | -2.90% |
| 1995Q2 | 1.97% | -2.44% |
| 1995Q3 | 2.31% | -3.25% |
| 1995Q4 | 2.04% | -1.83% |
| 1996Q1 | 1.59% | -2.34% |
| 1996Q2 | 1.51% | -2.21% |
| 1996Q3 | 2.04% | -1.41% |
| 1996Q4 | 2.27% | -0.99% |
| 1997Q1 | 2.61% | -1.61% |
| 1997Q2 | 2.14% | -1.42% |
| 1997Q3 | 2.29% | -1.22% |
| 1997Q4 | 2.73% | -1.12% |
| 1998Q1 | 2.39% | 0.73% |
| 1998Q2 | 2.95% | 0.84% |
| 1998Q3 | 2.52% | 0.51% |
| 1998Q4 | 2.79% | 1.07% |
| 1999Q1 | 2.23% | 1.30% |
| 1999Q2 | 2.86% | 1.68% |
| 1999Q3 | 2.49% | 2.72% |
| 1999Q4 | 2.36% | 2.78% |
| 2000Q1 | 3.35% | 1.88% |
| 2000Q2 | 2.55% | 1.88% |
| 2000Q3 | 2.71% | 2.56% |
| 2000Q4 | 2.18% | 2.69% |
| 2001Q1 | 2.87% | 2.74% |
| 2001Q2 | 2.91% | 2.15% |
| 2001Q3 | 3.54% | 1.99% |
| 2001Q4 | 3.44% | 2.73% |
| 2002Q1 | 2.68% | 0.35% |
| 2002Q2 | 3.01% | 0.09% |
| 2002Q3 | 2.91% | -0.44% |
| 2002Q4 | 3.28% | -2.10% |
| 2003Q1 | 3.00% | -2.57% |
| 2003Q2 | 2.34% | -2.46% |
| 2003Q3 | 1.90% | -2.98% |
| 2003Q4 | 1.71% | -3.97% |
| 2004Q1 | 1.84% | -3.09% |
| 2004Q2 | 1.52% | -3.05% |
| 2004Q3 | 1.08% | -3.11% |
| 2004Q4 | 0.91% | -2.28% |
| 2005Q1 | 0.71% | -3.27% |
| 2005Q2 | 0.94% | -3.19% |
| 2005Q3 | 1.11% | -2.71% |
| 2005Q4 | 1.01% | -4.01% |
| 2006Q1 | 0.54% | -3.37% |
| 2006Q2 | 0.89% | -3.45% |
| 2006Q3 | 1.26% | -3.98% |
| 2006Q4 | 0.91% | -2.50% |
| 2007Q1 | 1.17% | 0.19% |
| 2007Q2 | 1.67% | -0.15% |
| 2007Q3 | 1.98% | 1.02% |
| 2007Q4 | 2.42% | 3.39% |
| 2008Q1 | 2.86% | 4.24% |
| 2008Q2 | 2.44% | 4.41% |
| 2008Q3 | 2.60% | 5.34% |
| 2008Q4 | 2.93% | 7.42% |
| 2009Q1 | 2.27% | 2.50% |
| 2009Q2 | 1.65% | 2.31% |
| 2009Q3 | 0.76% | -0.13% |
| 2009Q4 | 0.53% | -2.46% |
| 2010Q1 | 0.50% | -3.90% |
| 2010Q2 | 0.76% | -3.54% |
| 2010Q3 | 0.06% | -5.53% |
| 2010Q4 | -0.24% | -9.02% |
| 2011Q1 | 0.26% | -3.21% |
| 2011Q2 | 0.24% | -3.72% |
| 2011Q3 | 0.47% | -2.61% |
| 2011Q4 | 0.39% | -3.12% |
| 2012Q1 | 0.08% | -2.24% |
| 2012Q2 | 0.00% | -2.44% |
| 2012Q3 | 0.70% | -0.61% |
| 2012Q4 | 0.62% | 0.07% |
| 2013Q1 | 0.25% | -2.65% |
| 2013Q2 | 0.47% | -1.49% |
| 2013Q3 | 0.63% | -1.22% |
| 2013Q4 | 0.22% | 0.26% |
Note: Shaded areas denote recessions. Plot shows in each year the two-year average change in the labor share of corporate-sector income and the succeeding two-year average change in productivity.
Source: Author’s analysis of data from BEA NIPA Table 1.14 and the BLS Total Economy Productivity series
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