Department of Labor Logo United States Department of Labor
Dot gov

The .gov means it's official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you're on a federal government site.

Https

The site is secure.
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Economic News Release
PRINT:Print

Multifactor Productivity Trends News Release

For release 10:00 a.m. (EDT) Thursday, March 26, 2015	USDL- 15-0480

Technical information: (202) 691-5606 • mfpweb@bls.gov • www.bls.gov/mfp 
Media contact:	       (202) 691-5902 • PressOffice@bls.gov

(Note: The Bureau of Labor Statistics identified an error in the estimates of 
the contribution of all other intellectual property products and the 
contribution of all other capital services to labor productivity. This 
error affects Table B of Multifactor Productivity Trends – 2013. No other
measures besides the measures listed above were affected by this error. 
The data in this release will not be corrected. For more information, 
please visit https://www.bls.gov/bls/errata/productivity-correction-11082017.htm.)

MULTIFACTOR PRODUCTIVITY TRENDS - 2013

Private nonfarm business sector multifactor productivity increased at a 0.9
percent annual rate in 2013, the U.S. Bureau of Labor Statistics reported 
today. (See chart 1, table A.) This gain in 2013 reflected a 2.7-percent 
increase in output and a 1.8-percent increase in the combined inputs of 
capital and labor. Capital services grew by 1.7 percent, the largest gain
since 2008, and labor input - which is the combined effect of hours worked 
and labor composition - grew 1.8 percent. Capital services per hour of all
persons decreased at a rate of 0.1 percent in 2013 after falling 0.8 percent
in 2012. The decreases in 2011, 2012, and 2013 are the only three years of
decline in this measure of capital intensity which began in 1987. 
(See table 1.) 

Multifactor productivity measures the change in output relative to the 
change in capital and labor inputs used to produce that output. 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 include 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 1.1 percent
annual rate in 2013, reflecting a 2.9- percent increase in output and a 
1.7-percent increase in the combined inputs of capital and labor. 
(See table 2.)

 
Historical trends in the private nonfarm business sector

Multifactor productivity in the private nonfarm business sector grew 0.9
percent annually from 1987 to 2013, reflecting a 2.9-percent growth in 
output and a 2.0-percent growth in combined inputs. (See table A.) For 
the 2007-2013 period, multifactor productivity grew 0.5 percent, due to 
a 1.0-percent increase in output coupled with a 0.5-percent increase in
combined inputs. The increase in combined inputs reflected a 1.4-percent
increase in capital services, a 0.5-percent decline in hours, and a 
0.5-percent increase in labor composition. (See table A.)

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. Prior to 
1995, and more recently for the 2007-2013 period, multifactor productivity
and the contributions of capital intensity to labor productivity grew 0.5
percent and 0.7 percent, respectively. The remaining contribution of labor
composition contributed to an overall growth of output per hour. The 
contributions to labor productivity growth differed from the 1995-2000 
and 2000-2007 periods, when upward shifts in multifactor productivity and
capital intensity resulted in stronger output per hour growth. 
(See chart 2, table B.)

Information processing equipment (IPE) and intellectual property products
(IPP) showed the strongest growth among the various capital asset 
components. For the 2007-2013 period, real capital services of IPE grew 
4.3 percent annually and IPP grew 3.0 percent annually in the private 
nonfarm business sector. (See table 5.) Both IPE and IPP have experienced
a steady deceleration in growth from their peak in 1995-2000; in the 
1995-2000 period IPE grew 18.4 percent and IPP grew 8.5 percent.

The revised multifactor productivity measure for 2013 is based on more 
recent source data than were available for the preliminary multifactor 
productivity release, published on July 9, 2014, 
www.bls.gov/news.release/archives/prod3_07092014.pdf. Multifactor 
productivity growth rates in the private nonfarm business sector were
revised from 0.3 percent to 0.9 percent in 2013, and from 1.5 percent
to 0.8 percent in 2012. (See table C.)


Table A.  Compound annual growth rates for productivity, output, and inputs
in the private nonfarm business and private business sectors for selected
periods,1987-2013

In percent


                            1987-  1987-  1990-  1995-  2000-  2007-  2012-
                            2013   1990   1995   2000   2007   2013   2013

Private nonfarm business1

Productivity
  Multifactor Productivity2  0.9    0.5    0.5    1.4    1.4    0.5    0.9
    Output per hour of all
      persons                2.1    1.6    1.6    2.9    2.6    1.5    0.9
    Output per unit of
      capital services      -0.5   -0.5   -0.4   -0.8   -0.4   -0.4    1.0


Output                       2.9    3.3    3.0    5.0    2.8    1.0    2.7


Inputs

  Combined inputs3           2.0    2.8    2.4    3.6    1.4    0.5    1.8
   Labor input4              1.2    2.3    2.0    2.4    0.5    0.0    1.8
     Hours                   0.8    1.7    1.3    2.1    0.2   -0.5    1.8
     Labor Composition5      0.5    0.6    0.7    0.3    0.3    0.5    0.0
   Capital services          3.4    3.8    3.4    5.9    3.3    1.4    1.7

Analytic ratio
  Capital services per
    hour of all persons      2.6    2.1    2.0    3.7    3.1    1.9   -0.1


Private business1

Productivity
  Multifactor Productivity2  1.0    0.6    0.5    1.6    1.4    0.5    1.1
    Output per hour of all
      persons                2.2    1.7    1.6    3.0    2.7    1.6    1.2
    Output per unit of
      capital services      -0.4   -0.5   -0.3   -0.6   -0.4   -0.3    1.2


Output                       2.9    3.3    2.9    5.1    2.8    1.0    2.9


Inputs

  Combined inputs3           1.9    2.7    2.4    3.4    1.4    0.5    1.7
   Labor input4              1.2    2.1    2.1    2.3    0.5    0.0    1.7
     Hours                   0.7    1.5    1.4    2.0    0.1   -0.6    1.7
     Labor Composition5      0.5    0.6    0.7    0.3    0.3    0.5    0.1
   Capital services          3.3    3.8    3.2    5.7    3.2    1.3    1.7

Analytic ratio
  Capital services per
    hour of all persons      2.6    2.2    1.8    3.7    3.1    1.9    0.0


1.  Excludes government enterprises.
2.  Output per unit of combined labor input and capital services.
3.  The growth rate of each input is weighted by its share of current dollar
    costs.
4.  Hours at work by age, education, and gender group are weighted by each
    group’s share of the total wage bill.
5.  Ratio of labor input to hours.
 
Table B.  Compound annual growth rates in output per hour of all persons 
and the contributions of capital intensity, labor composition, and 
multifactor productivity in the private nonfarm business and private 
business sectors for selected periods, 1987-2013

In percent



                            1987-  1987-  1990-  1995-  2000-  2007-  2012-
                            2013   1990   1995   2000   2007   2013   2013

Private nonfarm business1

Output per hour
of all persons               2.1    1.6    1.6    2.9    2.6    1.5    0.9

Contribution of
capital intensity2           0.9    0.7    0.7    1.2    1.0    0.7    0.0

  Contribution of
  information processing
  equipment3                 0.3    0.3    0.3    0.6    0.3    0.2    0.0

  Contribution of
  research and develop-
  ment4                      0.1    0.1    0.1    0.1    0.1    0.1    0.0

  Contribution of all
  other intellectual    
  property products          0.2    0.2    0.4    0.4   -0.1    0.1   -0.1

  Contribution of all
  other capital services     0.3    0.1   -0.1    0.1    0.7    0.3    0.0

Contribution of
labor composition6           0.3    0.4    0.4    0.2    0.2    0.3    0.0

Multifactor productivity7    0.9    0.5    0.5    1.4    1.4    0.5    0.9

  Contribution of R&D to
  multifactor productivity


Private business1

Output per hour
of all persons               2.2    1.7    1.6    3.0    2.7    1.6    1.2

Contribution of
capital intensity2           0.9    0.7    0.6    1.2    1.0    0.7    0.0

  Contribution of
  information processing
  equipment3                 0.3    0.3    0.3    0.6    0.3    0.2    0.0

  Contribution of
  research and develop-
  ment4                      0.1    0.1    0.1    0.1    0.1    0.1    0.0

  Contribution of all
  other intellectual    
  property products          0.2    0.2    0.4    0.4   -0.1    0.1    0.0

  Contribution of all
  other capital services     0.3    0.1   -0.1    0.1    0.7    0.3    0.0

Contribution of
labor composition6           0.3    0.4    0.5    0.2    0.2    0.3    0.1

Multifactor productivity7    1.0    0.6    0.5    1.6    1.4    0.5    1.1

1. Excludes government enterprises.
2. Capital services per hour multiplied by capital's share of current
   dollar costs.
3. Information processing equipment per hour multiplied by its share of 
   current dollar costs.
4. Research and development per hour multiplied by its share of current
   dollar costs.
5. Software and artistic originals per hour multiplied by their share
   of current dollar costs.
6. Labor composition multiplied by labor's share of current dollar costs.
7. Output per unit of combined labor input 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.  Contributions of information processing equipment, research and
development, all other intellectual property products, and all other 
capital services may not sum to the contribution of capital intensity
due to independent rounding.
 
Table C. Annual growth rates of the previous and revised multifactor
productivity measures in the private nonfarm business and private
business sectors for the 1987-2013 period

Annual percent change from previous year

          Private Nonfarm Business      Private Business
Year      Previous      Revised         Previous      Revised


1988         1.0          1.0              0.7          0.7
1989         0.1          0.1              0.4          0.3
1990         0.3          0.4              0.6          0.7
1991        -0.8         -0.8             -0.8         -0.8
1992         2.5          2.5              2.8          2.8
1993        -0.1         -0.1             -0.2         -0.2
1994         0.6          0.7              0.6          0.7
1995         0.3          0.3              0.0          0.0
1996         1.4          1.5              1.8          1.8
1997         0.7          0.7              0.9          0.9
1998         1.6          1.7              1.6          1.6
1999         1.8          1.7              2.0          1.9
2000         1.4          1.5              1.6          1.7
2001         0.5          0.5              0.5          0.6
2002         2.1          2.0              2.1          2.0
2003         2.4          2.3              2.6          2.5
2004         2.8          2.7              2.9          2.8
2005         1.4          1.3              1.4          1.3
2006         0.3          0.3              0.4          0.3
2007         0.4          0.4              0.3          0.3
2008        -1.3         -1.3             -1.2         -1.2
2009        -0.3         -0.2             -0.1          0.0
2010         2.7          2.8              2.6          2.7
2011         0.7          0.0              0.6         -0.1
2012         1.5          0.8              1.4          0.7
2013         0.3          0.9              0.7          1.1


Technical Notes

Capital Services

Capital services are the services derived from the stock of physical
assets and intellectual property assets. There are 90 asset types for
fixed business equipment, structures, inventories, land, and 
intellectual property products. Data on investment for fixed assets 
are obtained from BEA. Data on inventories are estimated using BEA 
and additional information from IRS Corporation Income Returns. Data
for land in the farm sector are obtained from USDA. Nonfarm industry
detail for land is based on IRS book value data. Current-dollar 
value-added data, obtained from BEA, are used in estimating capital
rental prices.

BLS provides additional detail in tables 5 and 6 on information 
processing equipment and intellectual property products. Information
processing equipment is composed of three broad classes of assets: 
computers and related equipment, communications equipment, and other 
information processing equipment. Computers and related equipment 
includes mainframe computers, personal computers, printers, terminals, 
tape drives, storage devices, and integrated systems. Communications 
equipment is not further differentiated. Other information processing
equipment includes medical equipment and related instruments, 
electromedical instruments, nonmedical instruments, photocopying and
related equipment, and office and accounting machinery. Intellectual
property products are composed of three broad classes of assets: 
software, research and development, and artistic originals. Software 
is comprised of pre-packaged, custom, and own-account software. 
Research and development is creative work undertaken to increase the
stock of knowledge for the purpose of discovering or developing new
products or improving existing ones. Artistic originals include 
theatrical movies, long-lived television programs, books, music, and
other forms of entertainment. Structures include nonresidential 
structures and residential capital that are rented out by profit-making
firms or persons.

Financial assets are excluded from capital services measures, as are
owner-occupied residential structures. The aggregate capital services
measures are obtained by Tornqvist aggregation of the capital stocks 
for each asset type within each of 60 NAICS industry groupings using 
estimated rental prices for each asset type. Each rental price reflects
the nominal rate of return to all assets within the industry and rates
of economic depreciation and revaluation for the specific asset; rental
prices are adjusted for the effects of taxes. Current-dollar capital 
costs can be defined as each asset’s rental price multiplied by its 
constant-dollar stock, adjusting for capital composition effects.
 
Labor Input

Labor input in private business and private nonfarm business is 
obtained by a 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 bill. 
Hours paid of employees are largely obtained from the Current 
Employment Statistics program (CES). These hours paid are then 
converted to an at work basis by using information from the Employment
Cost Index (ECI) of the National Compensation Survey (NCS) benchmarked
to the Hours at Work Survey. Hours at work for nonproduction and 
supervisory workers are derived using data from the Current Population
Survey (CPS), the CES, and the NCS. The hours at work of proprietors,
unpaid family workers, and farm employees are derived from the Current
Population Survey. Hours at work data reflect Productivity and Costs
data as of the February 5, 2015 "Productivity and Costs" news release 
(USDL-15-0157). The growth rate of labor composition is defined as the
difference between the growth rate of weighted labor input and the growth
rate of the hours of all persons. 

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, 
2013" http://www.bls.gov/mfp/mprlabor.pdf. 

Combined Inputs

Labor input and capital services are combined using a 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 if the price of one factor 
falls relative to the price of the other factor; there would be 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.
 
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 2013. Additionally, the private
nonfarm business sector excludes farms from the private business sector,
but includes agricultural services. Multifactor measures exclude government
enterprises, while the BLS quarterly Productivity and Cost series include
them. The output measures are based on the revised National Income and 
Product Accounts (NIPA) data released by BEA on January 30, 2015.

Multifactor Productivity

Multifactor productivity measures describe the relationship between 
output in real terms and the combined 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.

Research and Development

The stock of research and development in private nonfarm business is 
derived by cumulating constant dollar measures of research and 
development expenditures and allowing for depreciation. Current dollar
expenditures for privately financed research and development are 
obtained from annual issues of Research and Development in Industry 
published by the National Science Foundation. BLS develops price 
deflators and estimates of the rate of depreciation.

The research and development data in the private nonfarm business sector
presented here show the effect of spillovers from economic units that
conduct research and development. BEA publishes measures of research 
and development investments in each industry that include estimates of
the direct returns to firms conducting such research and development 
activities. By combining the direct returns to firms conducting research
and development with the spillover effect of other firms, a picture of
the total overall effects of research and development can be drawn.

Further description of these data and methods can be found in BLS 
Bulletin 2331 (September 1989), "The Impact of Research and Development
on Productivity Growth." http://www.bls.gov/mfp/mfparchive.htm. BLS 
measures of year-to-year contributions of research and development to
the private nonfarm business sector and measures of the stock of research
and development are available at http://www.bls.gov/mfp/rdtable.pdf .
 
Other Information

Comprehensive tables containing additional data beyond the scope of 
this press release are available upon request at 202-691-5606 or at 
http://www.bls.gov/mfp/mprdload.htm . More detailed information on methods,
limitations, and data sources of capital and labor are provided in 
BLS Bulletin 2178 (September 1983), "Trends in Multifactor Productivity,
1948-81" http://www.bls.gov/mfp/mfparchive.htm, and on the BLS Multifactor
Productivity website under the title "Technical Information About the BLS
Multifactor Productivity Measures" for Major Sectors and 18 NAICS 3-digit
Manufacturing Industries at http://www.bls.gov/mfp/mprtech.pdf. General 
information is available on the BLS Multifactor Productivity website at
http://www.bls.gov/mfp/mprover.htm. Additional data not contained in the
release, can be obtained in print or at http://www.bls.gov/mfp. A number
of comprehensive tables set up as zip files can be downloaded at 
http://www.bls.gov/mfp/mprdload.htm. Included in the additional data 
available in the home page is a zip file containing selected multifactor
productivity data that links 1948- 87 SIC data to NAICS data from 1987 
forward. This file includes data for the private business and private 
nonfarm business sector. 
 

Table 1. Private nonfarm business sector: productivity and related measures
for the 1987-2013 period1

Annual percent change from previous year

                                                       Combined           
               Output                                  units of           
       Output  per                                     labor in-              
       per     unit of Multi-                          put and   Capital      
       hour    capital factor                  Capital capital   services     
       of all  servic- Product-        Labor   Servic- servic-   per hour of  
Year   persons es      ivity2  Output3 Input4  es5     es6       all persons  

1988    1.7     0.7     1.0     4.6     3.5     3.8     3.6       0.9
1989    0.9    -0.3     0.1     3.7     3.4     4.1     3.6       1.2

1990    2.1    -1.8     0.4     1.5     0.0     3.5     1.1       4.0
1991    2.0    -3.5    -0.8    -0.5    -1.1     3.0     0.2       5.7
1992    4.3     1.5     2.5     4.1     1.0     2.5     1.5       2.7
1993    0.2    -0.1    -0.1     3.2     3.4     3.3     3.3       0.3
1994    1.0     1.0     0.7     4.7     4.1     3.6     4.0       0.0

1995    0.8    -0.8     0.3     3.6     2.6     4.4     3.2       1.6
1996    2.7    -0.2     1.5     4.6     2.1     4.8     3.0       2.9
1997    1.6    -0.2     0.7     5.3     4.1     5.5     4.5       1.8
1998    3.1    -0.8     1.7     5.3     2.4     6.2     3.6       4.0
1999    3.4    -1.0     1.7     5.6     2.5     6.7     3.8       4.4

2000    3.4    -2.0     1.5     4.4     1.1     6.5     2.8       5.5
2001    3.0    -3.7     0.5     0.9    -1.6     4.8     0.3       7.0
2002    4.3    -1.5     2.0     1.8    -1.8     3.3    -0.2       5.9
2003    3.5     0.4     2.3     3.2    -0.1     2.7     0.8       3.1
2004    3.0     2.0     2.7     4.5     1.3     2.5     1.7       1.0

2005    1.9     0.6     1.3     3.8     2.1     3.2     2.4       1.3
2006    0.9    -0.2     0.3     3.3     2.7     3.5     3.0       1.1
2007    1.7    -0.7     0.4     2.4     1.4     3.1     2.0       2.4
2008    0.8    -3.8    -1.3    -1.3    -1.4     2.6     0.0       4.8
2009    3.4    -4.9    -0.2    -4.1    -6.5     0.9    -3.9       8.8

2010    3.2     2.8     2.8     3.2     0.4     0.4     0.4       0.4
2011    0.0     1.1     0.0     2.2     2.9     1.1     2.3      -1.1
2012    0.9     1.8     0.8     3.3     3.0     1.5     2.4      -0.8
2013    0.9     1.0     0.9     2.7     1.8     1.7     1.8      -0.1

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



Table 2. Private business sector: productivity and related measures
for the 1987-2013 period1

Annual percent change from previous year

                                                       Combined           
               Output                                  units of           
       Output  per                                     labor in-              
       per     unit of Multi-                          put and   Capital      
       hour    capital factor                  Capital capital   services     
       of all  servic- Product-        Labor   Servic- servic-   per hour of  
Year   persons es      ivity2  Output3 Input4  es5     es6       all persons  

1988    1.5     0.3     0.7     4.3     3.4     4.0     3.6       1.2
1989    1.1    -0.2     0.3     3.9     3.3     4.0     3.5       1.3

1990    2.4    -1.6     0.7     1.6    -0.2     3.3     1.0       4.1
1991    1.9    -3.3    -0.8    -0.5    -1.0     2.9     0.3       5.4
1992    4.5     1.9     2.8     4.3     1.0     2.4     1.5       2.5
1993    0.2    -0.2    -0.2     3.0     3.1     3.1     3.1       0.4
1994    0.9     1.3     0.7     4.9     4.5     3.5     4.2      -0.5

1995    0.4    -0.9     0.0     3.2     2.6     4.1     3.1       1.4
1996    3.1     0.1     1.8     4.7     1.9     4.5     2.8       2.9
1997    1.9     0.1     0.9     5.3     3.9     5.3     4.4       1.8
1998    3.2    -0.8     1.6     5.2     2.2     6.0     3.5       4.0
1999    3.6    -0.8     1.9     5.6     2.3     6.5     3.6       4.4

2000    3.6    -1.7     1.7     4.5     1.1     6.3     2.8       5.3
2001    3.1    -3.7     0.6     0.8    -1.8     4.6     0.2       7.0
2002    4.2    -1.3     2.0     1.8    -1.8     3.1    -0.2       5.6
2003    3.7     0.6     2.5     3.2    -0.2     2.6     0.7       3.1
2004    3.1     2.0     2.8     4.5     1.2     2.5     1.7       1.2

2005    2.0     0.6     1.3     3.8     2.0     3.2     2.5       1.4
2006    1.0    -0.3     0.3     3.2     2.5     3.5     2.9       1.2
2007    1.5    -0.8     0.3     2.2     1.3     3.0     1.9       2.3
2008    0.8    -3.6    -1.2    -1.2    -1.3     2.5     0.0       4.5
2009    3.5    -4.6     0.0    -3.9    -6.5     0.7    -3.9       8.5

2010    3.2     2.8     2.7     3.2     0.5     0.4     0.5       0.4
2011   -0.1     0.9    -0.1     2.1     2.9     1.3     2.3      -0.9
2012    0.8     1.6     0.7     3.2     2.9     1.5     2.4      -0.8
2013    1.2     1.2     1.1     2.9     1.7     1.7     1.7       0.0

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



Table 3. Private nonfarm business sector: indexes of productivity and related
measures, 1987-2013(1)

Indexes 2009=100

                                                       Combined           
               Output                                  units of           
       Output  per                                     labor in-              
       per     unit of Multi-                          put and   Capital      
       hour    capital factor                  Capital capital   services     
       of all  servic- Product-        Labor   Servic- servic-   per hour of  
Year   persons es      ivity2  Output3 Input4  es5     es6       all persons  

1987    61.2    121.7   82.6    53.4    78.5    43.8    64.6      50.3
1988    62.2    122.6   83.4    55.8    81.2    45.5    66.9      50.7
1989    62.7    122.2   83.5    57.9    84.0    47.4    69.3      51.3

1990    64.1    119.9   83.8    58.8    83.9    49.0    70.1      53.4
1991    65.3    115.7   83.2    58.4    83.0    50.5    70.3      56.4
1992    68.1    117.5   85.3    60.8    83.9    51.8    71.3      58.0
1993    68.3    117.4   85.2    62.8    86.7    53.5    73.7      58.1
1994    69.0    118.6   85.8    65.7    90.3    55.4    76.6      58.1

1995    69.5    117.7   86.1    68.1    92.7    57.8    79.1      59.0
1996    71.4    117.5   87.3    71.2    94.6    60.6    81.5      60.8
1997    72.6    117.3   87.9    74.9    98.5    63.9    85.2      61.9
1998    74.9    116.3   89.4    78.9   100.8    67.9    88.3      64.4
1999    77.4    115.1   90.9    83.3   103.4    72.4    91.7      67.2

2000    80.0    112.8   92.3    87.0   104.5    77.1    94.2      70.9
2001    82.5    108.6   92.8    87.7   102.8    80.7    94.5      75.9
2002    86.0    107.0   94.7    89.3   100.9    83.4    94.3      80.4
2003    89.1    107.5   96.9    92.1   100.8    85.7    95.1      82.8
2004    91.7    109.6   99.5    96.2   102.1    87.8    96.7      83.7

2005    93.5    110.3  100.9    99.9   104.2    90.6    99.0      84.8
2006    94.3    110.1  101.2   103.2   107.0    93.7   102.0      85.7
2007    95.9    109.4  101.6   105.6   108.5    96.6   104.0      87.7
2008    96.7    105.2  100.2   104.3   106.9    99.1   104.0      91.9
2009   100.0    100.0  100.0   100.0   100.0   100.0   100.0     100.0

2010   103.2    102.8  102.8   103.2   100.4   100.4   100.4     100.4
2011   103.2    103.9  102.8   105.5   103.3   101.5   102.7      99.3
2012   104.2    105.8  103.7   109.0   106.4   103.1   105.2      98.5
2013   105.1    106.8  104.6   111.9   108.4   104.8   107.0      98.4

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



Table 4. Private business sector: indexes of productivity and related
measures, 1987-2013(1)

Indexes 2009=100

                                                       Combined           
               Output                                  units of           
       Output  per                                     labor in-              
       per     unit of Multi-                          put and   Capital      
       hour    capital factor                  Capital capital   services     
       of all  servic- Product-        Labor   Servic- servic-   per hour of  
Year   persons es      ivity2  Output3 Input4  es5     es6       all persons  

1987    60.3    118.6   81.4    53.3    79.5    44.9    65.4      50.9
1988    61.3    119.0   82.0    55.6    82.2    46.7    67.8      51.5
1989    62.0    118.8   82.3    57.7    84.8    48.6    70.2      52.2

1990    63.5    116.9   82.8    58.7    84.6    50.2    70.8      54.3
1991    64.7    113.0   82.1    58.3    83.8    51.6    71.1      57.2
1992    67.6    115.1   84.4    60.8    84.7    52.8    72.1      58.7
1993    67.7    114.9   84.2    62.6    87.3    54.5    74.4      58.9
1994    68.3    116.5   84.8    65.7    91.3    56.4    77.5      58.6

1995    68.6    115.4   84.8    67.8    93.7    58.8    79.9      59.4
1996    70.7    115.6   86.4    71.0    95.5    61.4    82.2      61.2
1997    72.0    115.6   87.2    74.8    99.3    64.7    85.8      62.3
1998    74.3    114.7   88.6    78.7   101.5    68.6    88.8      64.8
1999    77.0    113.8   90.3    83.1   103.8    73.0    92.0      67.6

2000    79.7    111.9   91.8    86.8   105.0    77.6    94.6      71.2
2001    82.2    107.8   92.3    87.5   103.1    81.2    94.8      76.2
2002    85.7    106.4   94.2    89.1   101.2    83.7    94.5      80.5
2003    88.8    107.1   96.6    91.9   101.0    85.9    95.2      83.0
2004    91.6    109.2   99.3    96.1   102.3    88.0    96.8      83.9

2005    93.4    109.8  100.6    99.8   104.4    90.9    99.2      85.1
2006    94.3    109.5  101.0   103.1   107.0    94.1   102.1      86.1
2007    95.8    108.7  101.2   105.3   108.4    96.9   104.0      88.1
2008    96.6    104.8  100.0   104.1   106.9    99.3   104.0      92.1
2009   100.0    100.0  100.0   100.0   100.0   100.0   100.0     100.0

2010   103.2    102.8  102.7   103.2   100.5   100.4   100.5     100.4
2011   103.1    103.7  102.6   105.4   103.4   101.6   102.8      99.4
2012   103.9    105.4  103.3   108.7   106.5   103.2   105.2      98.7
2013   105.2    106.6  104.5   111.8   108.3   104.9   107.0      98.7

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 combined units of labor input and capital services.

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

(4)	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 bill.

(5)	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.
 
(6)	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.

 

Table 5. Compound average annual growth rates in real capital services
by asset type, private nonfarm business sector, 1987-2013

In percent


                        1987-   1987-   1990-   1995-   2000-   2007-   2012-
                        2013    1990    1995    2000    2007    2013    2013

All Assets               3.4     3.8     3.4     5.9     3.3     1.4     1.7

  Equipment              4.5     3.8     4.1     9.0     4.6     1.6     2.5

    Information
    Processing
    Equipment (IPE)      9.4     9.0     8.2    18.4     8.7     4.3     2.8

      Computers &
      related equipment 17.8    18.8    16.0    40.6    13.8     6.6     2.8

      Communication
      equipment          7.2     5.9     5.2    10.8     8.5     5.1     4.7

      Other IPE          2.6     2.6     3.7     3.4     2.5     1.0     0.3

    All other equipment  2.3     1.5     2.2     4.6     2.7     0.5     2.4

  Structures             1.7     3.0     2.0     2.2     1.3     0.8     0.8

  Intellectual property
  products               5.9     8.2     6.7     8.5     5.0     3.0     2.9

      Research
         &    
      Development        3.8     5.7     4.2     4.6     2.9     3.0     2.4

      Software          10.5    17.8    13.4    16.8     7.7     3.2     3.7

      Artistic
      Originals          3.3     3.7     3.4     3.9     3.6     2.3     2.4

  Residential rental     1.3     1.9     0.9     1.8     2.2    -0.3    -0.3
  capital

  Inventories            2.4     3.4     2.3     4.4     2.3     0.5     2.0

  Land                   0.7     1.6     1.1     1.2     0.5    -0.2     0.8

Source: Bureau of Labor Statistics

Note: For a brief discussion of methods used in preparing these data,
see Technical Notes in this release.



Table 6. Compound average annual growth rates in real capital services
by asset type, private business sector, 1987-2013

In percent


                        1987-   1987-   1990-   1995-   2000-   2007-   2012-
                        2013    1990    1995    2000    2007    2013    2013

All Assets               3.3     3.8     3.2     5.7     3.2     1.3     1.7

  Equipment              4.4     3.6     3.9     8.8     4.5     1.6     2.5

    Information
    Processing
    Equipment (IPE)      9.4     9.0     8.2    18.4     8.7     4.3     2.8

      Computers &
      related equipment 17.8    18.8    16.0    40.6    13.8     6.6     2.8

      Communication
      equipment          7.2     5.9     5.2    10.8     8.5     5.1     4.7

      Other IPE          2.7     2.7     3.7     3.4     2.7     1.3     0.6

    All other equipment  2.2     1.2     2.0     4.5     2.7     0.5     2.4

  Structures             1.6     2.9     1.9     2.1     1.2     0.8     0.8

  Intellectual property
  products               5.9     8.2     6.7     8.5     5.0     3.0     2.9

      Research
         &    
      Development        3.8     5.7     4.2     4.6     2.9     3.0     2.4

      Software          10.5    17.8    13.5    16.8     7.7     3.2     3.7

      Artistic
      Originals          3.3     3.7     3.4     3.9     3.6     2.3     2.4

  Residential rental     1.3     1.9     0.9     1.8     2.2    -0.3    -0.3
  capital

  Inventories            2.3     2.9     2.3     4.2     2.2     0.4     1.8

  Land                   0.8     3.3     0.9     0.8     0.6    -0.4     0.5

Source: Bureau of Labor Statistics

Note: For a brief discussion of methods used in preparing these data,
see Technical Notes in this release.



Last Modified Date: November 08, 2017