Multifactor productivity in nonfarm business, 2005
March 26, 2007
In the private nonfarm business sector, multifactor productivity—output per combined units of labor and capital inputs—rose 1.8 percent in 2005. This was lower than the 2.6-percent increase in 2004.
Output increased 3.9 percent in 2005, and the combined inputs of capital and labor increased 2.0 percent.
Labor input grew 1.8 percent in 2005. Capital services grew 2.4 percent. Within capital services, equipment was the fastest growing component. The increase in equipment in 2005 was largely due to capital services of information processing equipment and software rising by 6.7 percent.
Multifactor productivity is designed to measure the joint influences of economic growth on technological change, efficiency improvements, returns to scale, reallocation of resources, and other factors, allowing for the effects of capital and labor.
Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Multifactor productivity in nonfarm business, 2005 on the Internet at http://www.bls.gov/opub/ted/2007/mar/wk4/art01.htm (visited February 10, 2016).
Recent editions of Spotlight on Statistics
Employment and Wages in Healthcare Occupations
Healthcare occupations are a significant percentage of U.S. employment. Some of the largest and highest paying occupations are in healthcare. This Spotlight examines employment and wages for healthcare occupations.
Fifty years of looking at changes in peoples lives
Longitudinal surveys help us understand long-term changes, such as how events that happened when a person was in high school affect labor market success as an adult.
- A look at pay at the top, the bottom, and in between
The Spotlight examines how earnings and wages have changed over time and how they differ within a geographic area, industry, or occupation.