1997 International Comparisons of Hourly Compensation Costs in Manufacturing — 1998-09-16

The gap in hourly compensation costs for manufacturing production workers between the United States and the average for 28 foreign economies widened in 1997, reflecting the U.S. dollar's appreciation against many foreign currencies. The average cost level for the 28 foreign economies studied by the Bureau of Labor Statistics, U.S. Department of Labor, was 16 percent lower than U.S. costs, when weighted by their importance in trade with the United States. The gap was only 5 percent in 1995 - the smallest difference in the 1975-1997 period. While hourly compensation costs in Europe and Japan remained above the U.S. level in 1997 - 12 and 6 percent, respectively - these cost differences narrowed significantly from the previous year. Costs in Canada declined slightly, lowering their level to 91 percent of U.S. costs.