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 Editor's Desk, Multifactor productivity in nonfarm business, 2005 on the Internet at http://www.bls.gov/opub/ted/2007/mar/wk4/art01.htm (visited April 23, 2014).
Spotlight on Statistics: Productivity
This edition of Spotlight on Statistics examines labor productivity trends from 2000 through 2010 for selected industries and sectors within the nonfarm business sector of the U.S. economy. Read more »