1998 International Comparisons of Hourly Compensation Costs in Manufacturing — 2000-01-11

Average hourly compensation costs for manufacturing production workers in 28 foreign economies fell to 79 percent of the U.S. level in 1998, down from 95 percent in 1995, according to the Bureau of Labor Statistics, U.S. Department of Labor. The trade-weighted costs relative to the U.S. declined 5 percentage points from 1997, the third consecutive yearly decline, reaching the lowest relative position since 1989, when it was 77 percent. The widening gap reflected the continued appreciation of the U.S. dollar against most foreign currencies, particularly the Asian currencies. (See chart 1.) When measured in U.S. dollars, trade-weighted hourly compensation costs for production workers in manufacturing increased 1.9 percent in the United States from 1997 to 1998 and declined 4.1 percent in the 28 foreign economies studied by BLS.