Multifactor Productivity Trends News Release

For release 10:00 am (EDT) Thursday, May 5, 2016	USDL-16-0881
Technical information:	(202) 691-5606  •  mfpweb@bls.gov  •  www.bls.gov/mfp
Media contact:	        (202) 691-5902  •  PressOffice@bls.gov 
PRELIMINARY MULTIFACTOR PRODUCTIVITY TRENDS – 2015

Private nonfarm business sector multifactor productivity increased at a
0.2-percent annual rate in 2015, the U.S. Bureau of Labor Statistics 
reported today. (See chart 1, table A.) This 2015 gain reflected a 
2.8-percent increase in output and a 2.6-percent increase in the combined
inputs of capital and labor. Capital services grew by 2.6 percent and 
labor input–which is the combined effect of hours worked and labor 
composition–also grew by 2.6 percent. Capital intensity, defined as 
capital services per hour, increased at a 0.4-percent annual rate in 
2015, which is the first increase in this measure since 2010. 
(See table 1.)

Multifactor productivity is calculated by dividing an index of real 
output by an index of combined units of labor input and capital services.
It is designed to measure the joint influences of technological change, 
efficiency improvements, returns to scale, reallocation of resources, 
and other factors of economic growth, accounting for the effects of 
capital and labor. Multifactor productivity annual measures differ from 
BLS quarterly labor productivity (output per hour worked) measures because
the former also includes the influences of capital services and shifts in
the composition of the workforce. Additionally, much of the source data 
needed to construct multifactor productivity measures are not available 
on a quarterly basis.

Private business sector multifactor productivity increased at a 0.2-percent
annual rate in 2015. A 2.9-percent increase in output and a 2.7-percent 
increase in the combined inputs of capital and labor contributed to the
multifactor productivity gain in 2015. (See table 2, table A.)
 
Historical trends in the private nonfarm business sector

Multifactor productivity in the private nonfarm business sector grew 0.9 
percent annually from 1987 to 2015. For the 2007-2015 period, multifactor
productivity grew 0.4 percent on average as combined inputs increased 0.9 
percent and output increased 1.3 percent. The increase in combined inputs 
reflected an increase in labor input of 0.6 percent along with a 1.6-percent
increase in capital services. (See table A.)

In the recent 2007-2015 period, annual labor productivity has slowed 
significantly to 1.2 percent, as compared to the 1995-2000 and 2000-2007
periods. Annual labor productivity growth can be viewed as the sum of three
components: multifactor productivity growth, the contribution of capital 
intensity, and the contribution of shifts in labor composition. For the 
2007-2015 period, labor productivity growth slowed due to multifactor 
productivity and the contribution of capital intensity falling below 
pre-1995 levels. (See chart 2.)

For the 2007-2015 period, the contribution of capital intensity and the 
contribution of labor composition amounted to 0.5 percent and 0.3
percent of private nonfarm business sector labor productivity growth, 
respectively. Additionally, the growth in multifactor productivity of 
0.4 percent contributed to an overall growth in output per hour of 1.2
percent. The contributions to labor composition slightly increased to 
0.3 percent, while multifactor productivity and the contribution of 
capital intensity greatly decelerated. (See chart 2, table B.) 

The methodology for measuring preliminary multifactor productivity for
2015 is a simplified version of the methodology that BLS uses when 
more detailed data are available. Measures will be revised early in 
the next calendar year. 

Table A.   Productivity, output, and inputs in the private nonfarm business
and private business sectors for selected periods,1987-2015

Compound annual growth rates


                            1987-  1987-  1990-  1995-  2000-  2007-  2014-
                            2015   1990   1995   2000   2007   2015   2015

Private nonfarm business1

Productivity
  Multifactor Productivity2  0.9    0.7    0.5    1.5    1.4    0.4    0.2
  Labor productivity3        2.0    1.6    1.6    2.9    2.6    1.2    0.6
  Output per unit of
    capital services        -0.4   -0.5   -0.3   -0.8   -0.4   -0.2    0.2


Output                       2.9    3.3    3.0    5.0    2.8    1.3    2.8


Inputs

  Combined inputs5           2.0    2.6    2.4    3.5    1.4    0.9    2.6
   Labor input6              1.3    2.0    2.0    2.4    0.6    0.6    2.6
     Hours                   0.9    1.7    1.3    2.1    0.2    0.2    2.2
     Labor Composition7      0.4    0.3    0.7    0.3    0.4    0.4    0.5
   Capital services          3.3    3.8    3.3    5.9    3.2    1.6    2.6

Analytic ratio
   Capital intensity8        2.4    2.0    2.0    3.7    3.0    1.4    0.4


Private business1

Productivity
  Multifactor Productivity2  0.9    0.8    0.5    1.6    1.4    0.4    0.2
  Labor productivity3        2.0    1.7    1.6    3.0    2.7    1.2    0.5
  Output per unit of
    capital services        -0.3   -0.4   -0.2   -0.6   -0.4   -0.2    0.3


Output                       2.9    3.3    2.9    5.1    2.8    1.4    2.9


Inputs

  Combined inputs5           1.9    2.5    2.4    3.4    1.4    1.0    2.7
   Labor input6              1.3    1.9    2.1    2.3    0.5    0.6    2.8
     Hours                   0.8    1.5    1.4    2.0    0.1    0.2    2.3
     Labor Composition7      0.4    0.3    0.7    0.3    0.4    0.4    0.5
   Capital services          3.2    3.7    3.2    5.7    3.2    1.6    2.6

Analytic ratio
   Capital intensity8        2.3    2.1    1.8    3.7    3.0    1.4    0.2


1.  Excludes government enterprises.
2.  Output per combined units of labor input and capital services.
3.  Output per hour worked.
4.  The growth rate of each input is weighted by its share of current dollar
    costs.
5.  Hours at work by age, education, and gender group are weighted by each
    group’s share of the total wage bill.
6.  Ratio of labor input to hours.
7.  Capital services per hour.

Table B.  Labor productivity and the contributions of capital intensity, 
labor composition, and multifactor productivity to labor productivity in the
private nonfarm business and private business sectors for selected periods,
1987-2015

Compound annual growth rates



                            1987-  1987-  1990-  1995-  2000-  2007-  2014-
                            2015   1990   1995   2000   2007   2015   2015

Private nonfarm business1

Labor productivity2          2.0    1.6    1.6    2.9    2.6    1.2    0.6

Contribution of
capital intensity3           0.8    0.7    0.6    1.2    1.0    0.5    0.1

Contribution of
labor composition4           0.3    0.2    0.5    0.2    0.2    0.3    0.3

Multifactor productivity5    0.9    0.7    0.5    1.5    1.4    0.4    0.2

  Contribution of R&D to
  multifactor productivity


Private business1

Labor productivity2          2.0    1.7    1.6    3.0    2.7    1.2    0.5

Contribution of
capital intensity3           0.8    0.7    0.6    1.2    1.0    0.5    0.1

Contribution of
labor composition4           0.3    0.2    0.5    0.2    0.2    0.3    0.3

Multifactor productivity5    0.9    0.8    0.5    1.6    1.4    0.4    0.2

1. Excludes government enterprises.
2. Output per hour worked.
3. Capital services per hour multiplied by capital's share of current
   dollar costs.
4. Labor composition multiplied by labor's share of current dollar costs.
5. Output per unit of combined labor and capital services.

Note: Multifactor productivity plus contribution of capital intensity and
labor composition may not sum to output per hour due to independent
rounding.


Technical Notes

The simplified methodology for preparing preliminary estimates of MFP is 
outlined in the June 2005 Monthly Labor Review article, “Preliminary 
estimates of multifactor productivity growth” located at 
http://www.bls.gov/opub/mlr/2005/06/art3full.pdf. This methodology is
applied to both the private nonfarm business and private business 
sectors and measures are calculated only for the most recent year. 
Data for all previous years are identical to the March 26, 2015 
“Multifactor Productivity Trends” news release (USDL-15-0480).

Capital Services  

Capital services are the services derived from the stock of physical
assets and intellectual property assets. Capital services measures 
constructed for the preliminary MFP measures are based on less detail 
only for the most recent year. The preliminary measures consist of 
six asset types as opposed to the 90 asset types for fixed business 
equipment, structures, inventories, land, and intellectual property 
products included in estimates for all previous years. The assets 
included in the preliminary estimates are structures, fixed business 
equipment, intellectual property products, inventories, rental 
residences, and land. Investments, depreciation, and capital income 
are estimated for each of these six aggregates. Capital services are 
calculated by a chained superlative Tornqvist index combining stocks 
of the six asset categories, weighted by capital income shares.

Labor Input 

Labor input in private business and private nonfarm business is obtained
by chained superlative Tornqvist aggregation of the hours at work by all
persons, classified by age, education, and gender with weights determined 
by each group’s share of the total wage. The labor composition index estimates
the effect of shifts in the age, education, and gender composition of the work 
force on the efficiency of hours worked. The preliminary estimates of 2015
hours worked for the private nonfarm business and private business sectors 
are extrapolated from the hours worked reported in the nonfarm business and
business sectors, respectively, in the February 4, 2016 
“Productivity and Costs” news release (USDL-16-0209). 

Additional information concerning data sources and methods of measuring
labor composition can be found in Cindy Zoghi, 2007, 
“Measuring Labor Composition: A Comparison of Alternate Methodologies” 
http://www.bls.gov/bls/fesacp1121407.pdf and in “Changes in the Composition
of Labor for BLS Multifactor Productivity Measures” 
http://www.bls.gov/mfp/mprlabor.pdf. 


Combined Inputs

Labor input and capital services are combined using chained superlative 
Tornqvist aggregation, applying weights that represent each component's 
share of total costs. The chained superlative Tornqvist index uses changing
weights; the share in each year is averaged with the preceding year's share.
Total costs are defined as the value of output less a portion of taxes on 
production and imports. Most taxes on production and imports, such as excise
taxes, are excluded from costs; however, property and motor vehicle taxes 
remain in total costs.
 


Capital Intensity

Capital intensity is the ratio of capital services to hours worked in the 
production process. The higher the capital to hours ratio, the more capital 
intensive the production process is. 

In a production process, profit maximizing/cost-minimizing firms adjust the
factor proportions of capital and labor when the price of one factor is less
than the other factor; there is a tendency for the firms to substitute the
less expensive factor for the more expensive one. In the short run, changes 
in hours worked are more variable than changes in capital services. Changes 
in hours worked in business cycles can result in volatility of the capital 
intensity ratio over short periods of time. In the long run an increase in
wages relative to the price of capital will induce the firm to substitute 
capital for labor, resulting in an increase in capital intensity. 

Rising labor costs are, in fact, an incentive for firms to introduce 
automated production processes. Industry estimates of capital to hours 
ratios can be obtained at http://www.bls.gov/mfp/mprdload.htm.

Value-Added Output

Private business sector output is a chain-type, current-weighted index 
constructed after excluding from gross domestic product (GDP) the 
following outputs: general government, nonprofit institutions, 
private households (including owner-occupied housing), and government
enterprises. This release presents data for the private business and 
private nonfarm business sectors. The private business sector accounted
for approximately 74 percent of gross domestic product in 2014. Additionally,
the private nonfarm business sector excludes farms from the private business
sector, but includes agricultural services. Multifactor productivity measures
exclude government enterprises, while the BLS Quarterly Productivity and Cost
series include them. 

The output measures are based on the National Income and Product Accounts
(NIPA) data released by the Bureau of Economic Analysis (BEA) on January 29,
2016 but do not reflect the revised data released by BEA on February 26, 2016.
The preliminary estimates of 2015 output for the private nonfarm business 
and private business sectors are extrapolated from the output reported in the
nonfarm business and business sectors, respectively, in the February 4, 2016
“Productivity and Costs” news release (USDL-16-0209). 
 
Multifactor Productivity

Multifactor productivity measures describe the relationship between 
output in real terms and the inputs involved in its production. They 
do not measure the specific contributions of labor or capital, or any 
other factor of production. Rather, multifactor productivity is designed 
to measure the joint influences of technological change, efficiency 
improvements, returns to scale, reallocation of resources, and other 
factors on economic growth, allowing for the effects of capital and labor. 

The multifactor productivity indexes for private business and private
nonfarm business are derived by dividing an output index by an index of
capital services and labor input. The output indexes are computed as chained 
superlative indexes (Fisher Ideal indexes) of components of real output.

Table 1. Private nonfarm business sector: productivity and related measures
for the 1987-2015 period1

Annual percent change from previous year

                                                                              
               Output                                  Combined               
               per                                     units of               
               unit of Multi-                          labor and              
       Labor   capital factor   Value-         Capital capital                
       produc- servic- Product- added          Servic- servic-   Capital      
Year   tivity2 es      ivity3   Output4 Labor5 es6     es7       Intensity8   

1988    1.7     0.8     1.2     4.6     3.2     3.8     3.4       0.9
1989    0.9    -0.3     0.2     3.7     3.2     4.0     3.5       1.2

1990    2.1    -1.8     0.6     1.5    -0.3     3.4     0.9       4.0
1991    2.0    -3.4    -0.4    -0.5    -1.5     3.0    -0.1       5.6
1992    4.3     1.6     3.2     4.1     0.2     2.5     0.9       2.7
1993    0.2     0.0    -0.3     3.2     3.7     3.2     3.5       0.2
1994    1.0     1.0     0.6     4.7     4.3     3.6     4.1       0.0

1995    0.8    -0.8    -0.2     3.6     3.5     4.4     3.8       1.6
1996    2.7    -0.2     1.6     4.6     2.0     4.8     2.9       3.0
1997    1.6    -0.2     0.9     5.3     3.7     5.5     4.3       1.9
1998    3.1    -0.8     1.2     5.3     3.0     6.2     4.0       4.0
1999    3.4    -0.9     1.9     5.6     2.2     6.5     3.6       4.3

2000    3.4    -1.9     1.6     4.4     1.1     6.4     2.7       5.4
2001    3.0    -3.7     0.5     0.9    -1.5     4.7     0.4       7.0
2002    4.3    -1.4     2.1     1.8    -1.9     3.2    -0.3       5.8
2003    3.5     0.5     2.2     3.2     0.1     2.6     0.9       3.0
2004    3.0     2.0     2.5     4.5     1.7     2.5     2.0       1.0

2005    1.9     0.7     1.5     3.8     1.8     3.1     2.3       1.2
2006    0.9    -0.2     0.3     3.3     2.7     3.5     3.0       1.1
2007    1.7    -0.6     0.6     2.4     1.1     3.0     1.8       2.3
2008    0.8    -3.8    -1.3    -1.3    -1.4     2.6     0.0       4.7
2009    3.4    -4.9    -0.3    -4.1    -6.3     0.8    -3.8       8.7

2010    3.2     2.8     2.9     3.2     0.2     0.4     0.3       0.4
2011    0.1     1.2     0.2     2.2     2.6     1.0     2.0      -1.1
2012    0.8     1.8     0.8     3.1     2.9     1.3     2.3      -1.0
2013   -0.1    -0.1    -0.1     1.8     1.9     1.8     1.9       0.0
2014    0.7     1.0     0.7     3.1     2.5     2.1     2.4      -0.3

2015    0.6     0.2     0.2     2.8     2.6     2.6     2.6       0.4

See footnotes following table 4.
Source: Bureau of Labor Statistics



Table 2. Private business sector: productivity and related measures
for the 1987-2015 period1

Annual percent change from previous year

                                                                              
               Output                                  Combined               
               per                                     units of               
               unit of Multi-                          labor and              
       Labor   capital factor   Value-         Capital capital                
       produc- servic- Product- added          Servic- servic-   Capital      
Year   tivity2 es      ivity3   Output4 Labor5 es6     es7       Intensity8   

1988    1.5     0.4     1.0     4.3     3.0     3.9     3.3       1.1
1989    1.1    -0.1     0.4     3.9     3.1     3.9     3.4       1.2

1990    2.4    -1.6     0.9     1.6    -0.5     3.3     0.8       4.0
1991    1.9    -3.2    -0.5    -0.5    -1.5     2.8    -0.1       5.3
1992    4.5     1.9     3.3     4.3     0.2     2.3     0.9       2.5
1993    0.2    -0.1    -0.4     3.0     3.5     3.0     3.3       0.3
1994    0.9     1.3     0.6     4.9     4.6     3.5     4.3      -0.5

1995    0.4    -0.9    -0.5     3.2     3.5     4.2     3.7       1.4
1996    3.1     0.1     1.9     4.7     1.8     4.6     2.7       3.0
1997    1.9     0.0     1.2     5.3     3.5     5.3     4.1       1.9
1998    3.2    -0.8     1.3     5.2     2.9     6.0     3.9       4.0
1999    3.6    -0.7     2.1     5.6     2.0     6.3     3.4       4.3

2000    3.6    -1.6     1.7     4.5     1.1     6.2     2.7       5.2
2001    3.1    -3.6     0.5     0.8    -1.7     4.6     0.3       7.0
2002    4.2    -1.2     2.1     1.8    -1.8     3.0    -0.3       5.5
2003    3.7     0.7     2.4     3.2     0.0     2.5     0.8       3.0
2004    3.1     2.0     2.5     4.5     1.7     2.5     1.9       1.1

2005    2.0     0.7     1.5     3.8     1.8     3.2     2.3       1.3
2006    1.0    -0.3     0.3     3.2     2.6     3.5     2.9       1.2
2007    1.5    -0.7     0.5     2.2     1.0     2.9     1.7       2.3
2008    0.8    -3.4    -1.2    -1.2    -1.3     2.3     0.0       4.4
2009    3.6    -4.5    -0.2    -3.9    -6.2     0.7    -3.7       8.5

2010    3.2     2.8     2.9     3.2     0.3     0.4     0.3       0.4
2011    0.0     1.0     0.1     2.1     2.6     1.1     2.0      -1.0
2012    0.6     1.4     0.6     2.9     2.9     1.5     2.3      -0.9
2013    0.4     0.2     0.2     2.0     1.8     1.9     1.8       0.2
2014    0.6     1.0     0.7     3.1     2.6     2.0     2.4      -0.5

2015    0.5     0.3     0.2     2.9     2.8     2.6     2.7       0.2

See footnotes following table 4.
Source: Bureau of Labor Statistics



Table 3. Private nonfarm business sector: indexes of productivity and related
measures, 1987-2015 period1

Indexes 2009=100

                                                                              
               Output                                  Combined               
               per                                     units of               
               unit of Multi-                          labor and              
       Labor   capital factor   Value-         Capital capital                
       produc- servic- Product- added          Servic- servic-   Capital      
Year   tivity2 es      ivity3   Output4 Labor5 es6     es7       Intensity8   

1987    61.2    120.6   82.0    53.4    78.8    44.2    65.1      50.7
1988    62.2    121.5   83.0    55.8    81.3    45.9    67.3      51.2
1989    62.7    121.2   83.1    57.9    83.9    47.8    69.6      51.8

1990    64.1    118.9   83.6    58.8    83.7    49.4    70.3      53.9
1991    65.3    114.9   83.3    58.4    82.4    50.9    70.2      56.9
1992    68.1    116.7   85.9    60.8    82.5    52.1    70.8      58.4
1993    68.3    116.7   85.6    62.8    85.6    53.8    73.3      58.5
1994    69.0    117.9   86.1    65.7    89.2    55.7    76.3      58.5

1995    69.5    117.0   85.9    68.1    92.4    58.2    79.2      59.4
1996    71.4    116.7   87.3    71.2    94.2    61.0    81.5      61.2
1997    72.6    116.4   88.1    74.9    97.7    64.3    85.0      62.3
1998    74.9    115.5   89.2    78.9   100.6    68.3    88.4      64.8
1999    77.4    114.5   90.9    83.3   102.9    72.8    91.6      67.6

2000    80.0    112.3   92.4    87.0   104.0    77.4    94.1      71.2
2001    82.5    108.2   92.9    87.7   102.4    81.1    94.5      76.2
2002    86.0    106.7   94.8    89.3   100.4    83.7    94.1      80.6
2003    89.1    107.2   96.9    92.1   100.6    85.9    95.0      83.0
2004    91.7    109.4   99.3    96.2   102.3    88.0    96.9      83.9

2005    93.5    110.1  100.8    99.9   104.2    90.7    99.1      84.9
2006    94.3    109.9  101.1   103.2   107.0    93.9   102.1      85.8
2007    95.9    109.2  101.7   105.6   108.2    96.7   103.9      87.8
2008    96.7    105.1  100.3   104.3   106.7    99.2   103.9      92.0
2009   100.0    100.0  100.0   100.0   100.0   100.0   100.0     100.0

2010   103.2    102.8  102.9   103.2   100.2   100.4   100.3     100.4
2011   103.2    104.1  103.2   105.5   102.8   101.4   102.3      99.2
2012   104.0    105.9  104.0   108.8   105.8   102.8   104.6      98.2
2013   103.9    105.8  103.9   110.8   107.8   104.7   106.6      98.2
2014   104.6    106.9  104.7   114.2   110.5   106.8   109.1      97.9

2015   105.2    107.1  104.9   117.4   113.4   109.6   111.9      98.2

See footnotes following table 4.
Source: Bureau of Labor Statistics



Table 4. Private business sector: indexes of productivity and related
measures, 1987-2015 period1

Indexes 2009=100

                                                                              
               Output                                  Combined               
               per                                     units of               
               unit of Multi-                          labor and              
       Labor   capital factor   Value-         Capital capital                
       produc- servic- Product- added          Servic- servic-   Capital      
Year   tivity2 es      ivity3   Output4 Labor5 es6     es7       Intensity8   

1987    60.3    117.3   80.8    53.3    79.6    45.4    65.9      51.4
1988    61.3    117.8   81.6    55.6    82.0    47.2    68.1      52.0
1989    62.0    117.7   82.0    57.7    84.6    49.0    70.4      52.6

1990    63.5    115.9   82.7    58.7    84.2    50.6    70.9      54.8
1991    64.7    112.1   82.3    58.3    83.0    52.0    70.9      57.7
1992    67.6    114.2   85.0    60.8    83.2    53.3    71.6      59.1
1993    67.7    114.2   84.7    62.6    86.1    54.9    73.9      59.3
1994    68.3    115.7   85.2    65.7    90.0    56.8    77.1      59.0

1995    68.6    114.6   84.8    67.8    93.2    59.2    80.0      59.9
1996    70.7    114.7   86.4    71.0    94.9    61.9    82.2      61.6
1997    72.0    114.7   87.4    74.8    98.2    65.2    85.6      62.8
1998    74.3    113.9   88.5    78.7   101.1    69.1    88.9      65.3
1999    77.0    113.0   90.4    83.1   103.1    73.5    91.9      68.1

2000    79.7    111.2   92.0    86.8   104.2    78.0    94.4      71.6
2001    82.2    107.2   92.4    87.5   102.5    81.6    94.6      76.6
2002    85.7    105.9   94.4    89.1   100.6    84.1    94.4      80.9
2003    88.8    106.7   96.6    91.9   100.7    86.2    95.1      83.3
2004    91.6    108.8   99.1    96.1   102.3    88.3    97.0      84.2

2005    93.4    109.5  100.6    99.8   104.2    91.1    99.2      85.3
2006    94.3    109.2  100.9   103.1   106.9    94.3   102.1      86.4
2007    95.8    108.5  101.4   105.3   108.0    97.1   103.9      88.3
2008    96.6    104.7  100.2   104.1   106.6    99.3   103.9      92.2
2009   100.0    100.0  100.0   100.0   100.0   100.0   100.0     100.0

2010   103.2    102.8  102.9   103.2   100.3   100.4   100.3     100.4
2011   103.1    103.8  103.0   105.4   102.9   101.5   102.3      99.3
2012   103.7    105.3  103.6   108.5   105.8   103.0   104.7      98.5
2013   104.1    105.5  103.8   110.7   107.7   104.9   106.6      98.7
2014   104.7    106.6  104.6   114.1   110.4   107.1   109.1      98.2

2015   105.2    107.0  104.8   117.4   113.5   109.8   112.0      98.4

See footnotes following table 4.
Source: Bureau of Labor Statistics



Footnotes, Tables 1-4

Source: The Bureau of Labor Statistics (BLS) develops productivity measures 
	using output and compensation data published by the Bureau of 
	Economic Analysis (BEA), hours data published by other BLS programs, 
	and capital data supplied by BEA and U.S. Department of Agriculture.
	Also see Technical Notes in this release.

(1)	The private business sector covers gross domestic product with the 
	exception of the output of general government, government 
	enterprises, non-profit institutions, the rental value of owner- 
	occupied real estate, and the output of paid employees of private
	households. The private nonfarm business sector further excludes
	farms but includes agricultural services.

(2)	Output per hour worked.

(3)	Output per combined units of labor input and capital services.

(4)	Gross domestic product originating in the sector, chained superlative
	index.

(5)	Index of hours at work of all persons including employees, 
	proprietors, and unpaid family workers, classified by age, education,
	and gender. This chained superlative index is computed by combining 
	changes in the hours of each age, education, and gender group weighted
	by each group’s share of the total wage.

(6)	A measure of the flow of capital services used in the sector. 
	Capital services measure the services derived from the stock of 
	physical assets and intellectual property products.
 
(7)	The growth rates of labor input and capital services are combined
	by weighting with their respective shares of current dollar costs,
	and aggregating into a chained superlative index.

(8)	Capital services per hour.
 

 

Last Modified Date: May 05, 2016