2002 International Comparisons of Hourly Compensation Costs in Manufacturing — 2003-09-26

Average hourly compensation costs in U.S. dollars for production workers in manufacturing in 29 foreign economies remained at 66 percent of the U.S. level in 2002, according to the Bureau of Labor Statistics, U.S. Department of Labor. Although overall compensation costs relative to the United States remained the same in 2002 as in 2001, costs in Europe rose from 90 to 95 percent of the U.S. level, while relative costs declined in Canada and Japan. (See table 1.) In the United States, hourly compensation costs for production workers in manufacturing increased 3.5 percent in 2002, to $21.33. Average costs in the United States were higher than those in the economies covered outside Europe, but seven of the European countries had higher hourly compensation costs than did the United States. Trade-weighted average costs increased 2.9 percent in the combined 29 foreign economies in 2002, when measured in national currency terms.