Total factor productivity up in 9 out of 21 major industries in 2022

Total factor productivity rose in 9 out of 21 major industries in 2022. Many of the total factor productivity increases in 2022 were driven by strong output growth outpacing increases in the combined inputs of capital, labor, energy, materials, and services.

The largest percentage increases occurred in arts, entertainment, and recreation (8.1 percent), management of companies and enterprises (6.0 percent), and educational services (3.1 percent). Mining had the largest percentage decrease in total factor productivity, at 8.8 percent, followed by agriculture, forestry, fishing, and hunting (6.1 percent), and construction (5.0 percent).

From 1987 to 2022, total factor productivity rose in 14 of the 21 major industries. The following industries had increases of at least 1.0 percent: durable manufacturing (1.2 percent), information (1.0 percent), retail trade (1.0 percent), and wholesale trade (1.0 percent). The largest percentage decrease over this period occurred in construction, at 0.7 percent.

These data are from the Productivity program. To learn more, see “Total Factor Productivity in Major Industries — 2022.” We also have more charts on total factor productivity.  Total factor productivity is defined as output per unit of combined inputs.