Multifactor productivity increased 1.5 percent in 2012
April 11, 2014
Multifactor productivity in the private nonfarm business sector increased at an annual rate of 1.5 percent in 2012. This gain reflected a 3.8-percent increase in output and a 2.2-percent increase in the combined inputs of capital and labor. Capital services grew by 1.4 percent in 2012, and labor input grew by 2.7 percent, the largest gain since 1997.
|Year||Multifactor productivity||Output||Combined inputs of labor and capital services|
From 1987 to 2012, multifactor productivity in private nonfarm business grew by an average of 1.0 percent annually. For the 2007–2012 period, multifactor productivity grew by an average of 0.7 percent annually, as output rose 0.8 percent annually and combined capital and labor inputs increased 0.1 percent.
These data are from the Multifactor Productivity program. To learn more, see “Multifactor Productivity Trends—2012,” news release USDL‑14‑0529 (HTML) (PDF). Multifactor productivity measures the change in output per unit of combined capital and labor inputs. It 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.
Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Multifactor productivity increased 1.5 percent in 2012 on the Internet at http://www.bls.gov/opub/ted/2014/ted_20140411.htm (visited April 29, 2016).
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