Multifactor Productivity Trends News Release

For release 10:00 a.m. (EDT) Tuesday, April 9, 2013	USDL- 13-0626
Technical information:       (202) 691-5606 • mfpweb@bls.gov • www.bls.gov/mfp
Media contact:               (202) 691-5902 • PressOffice@bls.gov
		MULTIFACTOR PRODUCTIVITY TRENDS - 2011

Private nonfarm business sector multifactor productivity increased at a 1.0
percent annual rate in 2011, the U.S. Bureau of Labor Statistics reported 
today. (See chart 1, table A.) The multifactor productivity gain in 2011 
reflected a 2.7 percent increase in output and 1.7 percent increase in the 
combined inputs of capital and labor. Capital services grew by 0.8 percent, 
and labor input – which is the combined effect of hours worked and labor 
composition – grew 2.2 percent, the largest gain in the series since 2006.  
This series began in 1987. (See table A, table 1.) Capital services per hour of 
all persons fell 1.2 percent for the private nonfarm business sector. Prior 
to 2011, this measure had increased each year with the exception of 1994, 
when it was unchanged.

Multifactor productivity measures the change in output per unit of combined 
capital and labor input. 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. Multifactor productivity, therefore, differs from labor
productivity (output per hour worked) measures that are published quarterly by
BLS. Multifactor productivity includes information on capital services, hours 
worked, and shifts in the composition of labor. Estimates of capital services 
and labor composition are not included in the quarterly labor productivity 
measures. Additionally, much of the source data needed to construct 
multifactor productivity measures are not available quarterly.

Private business sector multifactor productivity increased at a 0.7 percent
annual rate in 2011, reflecting a 2.4 percent increase in output and 1.7 
percent increase in the combined inputs of capital and labor. The increase
in combined inputs of capital and labor was the largest since 2007. 
(See table A, table 2.)   

Historical trends in private nonfarm business

Multifactor productivity in private nonfarm business grew 0.9 percent annually
from 1987 to 2011. (See table A.)  For the 2007-2011 period, multifactor 
productivity grew 0.4 percent, due to a 0.1 percent decline in output coupled 
with a 0.5 percent decline in combined inputs. In contrast, the 1.0 percent 
increase in multifactor productivity in 2011 was a result of an increase in 
output much larger than the increase in combined inputs. Output grew 2.7 
percent over the year, while combined inputs grew 1.7 percent. (See table 1.)

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. Output per hour shifted 
sharply upwards after the 1990-1995 period. In particular, the contribution 
of capital intensity to labor productivity growth became more pronounced
after 1995. (See chart 2, table B.)  

For the 2007-2011 period, the contribution of capital intensity increased
at a 1.1 percent annual rate. Output per hour of all persons increased at 
a 1.9 percent annual rate, close to the 2.2 percent annual rate seen during 
the entire 1987-2011 period. This was due to multifactor productivity 
increasing at a 0.4 percent annual rate from 2007 to 2011, slower than the
gains of 1.3 and 1.4 percent that occurred during the 1995-2000 and 2000-2007 
periods, respectively. (See chart 2, table B.)

For the 2000-2007 period, information processing equipment and software 
(IPES) grew 8.1 percent annually in the private nonfarm business sector.
(See table 5.) For the 2007-2011 period, IPES slowed to a 3.9 percent 
annual rate. For both periods, the rate of IPES was markedly lower than 
the 17.8 percent increase in the 1995-2000 period. 

The revised multifactor productivity measure for the most recent year 
is based on more recent source data than were available for the preliminary
multifactor productivity release published on May 9, 2012, 
http://www.bls.gov/news.release/archives/prod3_05092012.pdf. Revisions 
to underlying data affect multifactor productivity growth rates for the 
2007-2011 period. (See table C.) In 2011, multifactor productivity growth 
in the private nonfarm business sector was 1.0 percent, larger than the 0.5
percent increase previously reported, due to a 0.3 percentage point upward
revision to output and a 0.2 percentage point downward revision to combined
inputs. For 2010, multifactor productivity growth in the private nonfarm 
business sector was 2.6 percent, a 0.9 percentage point downward 
revision due to a downward revision to output.



Table A.  Compound annual growth rates for productivity, output, and inputs
in the private nonfarm business and private business sectors for selected
periods,1987-2011

In percent


                            1987-  1987-  1990-  1995-  2000-  2007-  2010-
                            2011   1990   1995   2000   2007   2011   2011

Private nonfarm business1

Productivity
  Multifactor Productivity2  0.9    0.5    0.5    1.3    1.4    0.4    1.0
    Output per hour of all
      persons                2.2    1.4    1.6    2.7    2.6    1.9    0.7
    Output per unit of
      capital services      -0.7   -0.4   -0.4   -1.0   -0.5   -1.2    1.9


Output                       2.8    3.2    2.9    5.0    2.7   -0.1    2.7


Inputs

  Combined inputs3           1.9    2.7    2.4    3.6    1.3   -0.5    1.7
   Labor input4              1.1    2.3    2.0    2.5    0.4   -1.3    2.2
     Hours                   0.6    1.7    1.3    2.2    0.1   -1.9    2.0
     Labor Composition5      0.5    0.6    0.7    0.3    0.3    0.6    0.2
   Capital services          3.5    3.6    3.3    6.0    3.2    1.1    0.8

Analytic ratio
  Capital services per
    hour of all persons      2.9    1.8    1.9    3.8    3.1    3.1   -1.2


Private business1

Productivity
  Multifactor Productivity2  1.0    0.6    0.4    1.5    1.4    0.4    0.7
    Output per hour of all
      persons                2.2    1.6    1.5    2.9    2.7    1.8    0.4
    Output per unit of
      capital services      -0.6   -0.3   -0.3   -0.8   -0.5   -1.1    1.4


Output                       2.8    3.2    2.8    5.0    2.7   -0.1    2.4


Inputs

  Combined inputs3           1.8    2.6    2.4    3.4    1.2   -0.5    1.7
   Labor input4              1.1    2.1    2.0    2.4    0.3   -1.3    2.1
     Hours                   0.6    1.6    1.3    2.0    0.0   -1.9    2.0
     Labor Composition5      0.5    0.6    0.7    0.3    0.3    0.6    0.1
   Capital services          3.4    3.5    3.1    5.8    3.1    1.1    1.0

Analytic ratio
  Capital services per
    hour of all persons      2.8    1.9    1.8    3.7    3.1    3.0   -1.0


1.  Excludes government enterprises.
2.  Output per combined units of 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, 1987-2011

In percent



                            1987-  1987-  1990-  1995-  2000-  2007-  2010-
                            2011   1990   1995   2000   2007   2011   2011

Private nonfarm business1

Output per hour
of all persons               2.2    1.4    1.6    2.7    2.6    1.9    0.7

Contribution of
capital intensity2           0.9    0.6    0.6    1.2    1.0    1.1   -0.4

  Contribution of
  information processing
  equipment and software3    0.6    0.5    0.5    0.9    0.5    0.4    0.1

  Contribution of all
  other capital services     0.3    0.1    0.1    0.2    0.4    0.6   -0.5

Contribution of
labor composition4           0.3    0.4    0.5    0.2    0.2    0.4    0.1

Multifactor productivity5    0.9    0.5    0.5    1.3    1.4    0.4    1.0

  Contribution of R&D to
  multifactor productivity   0.2    0.2    0.2    0.2    0.2    0.2    0.1


Private business1

Output per hour
of all persons               2.2    1.6    1.5    2.9    2.7    1.8    0.4

Contribution of
capital intensity2           0.9    0.6    0.6    1.2    1.0    1.0   -0.4

  Contribution of
  information processing
  equipment and software3    0.6    0.5    0.4    0.9    0.5    0.4    0.1

  Contribution of all
  other capital services     0.3    0.2    0.1    0.3    0.4    0.6   -0.4

Contribution of
labor composition4           0.3    0.4    0.5    0.2    0.2    0.4    0.1

Multifactor productivity5    1.0    0.6    0.4    1.5    1.4    0.4    0.7

1. Excludes government enterprises.
2. Capital services per hour multiplied by capital's share of current
   dollar costs.
3. Information processing equipment and software per hour multiplied by
   its share of current dollar costs.
4. Labor composition multiplied by labor's share of current dollar costs.
5. Output per combined units of 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.  Contribution of information processing equipment 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 1987-2011 period

Annual percent change from previous year

          Private Nonfarm Business      Private Business
Year      Previous      Revised         Previous      Revised


1988         1.0          1.0              0.8          0.8
1989         0.0          0.0              0.3          0.3
1990         0.4          0.4              0.6          0.6
1991        -1.0         -1.0             -1.0         -1.0
1992         2.3          2.3              2.6          2.6
1993         0.3          0.3              0.2          0.2
1994         0.7          0.7              0.7          0.7
1995         0.0          0.0             -0.3         -0.3
1996         1.4          1.4              1.7          1.7
1997         0.6          0.6              0.8          0.8
1998         1.5          1.5              1.5          1.5
1999         1.6          1.7              1.8          1.8
2000         1.6          1.6              1.7          1.7
2001         0.7          0.7              0.8          0.8
2002         2.4          2.4              2.4          2.4
2003         2.5          2.5              2.7          2.7
2004         2.4          2.4              2.4          2.4
2005         1.1          1.1              1.0          1.0
2006         0.4          0.4              0.5          0.4
2007         0.3          0.3              0.3          0.3
2008        -1.4         -1.4             -1.2         -1.2
2009        -1.0         -0.4             -0.8         -0.1
2010         3.5          2.6              3.4          2.5
2011         0.5          1.0              0.3          0.7


Technical Notes

Capital Services

Capital services are the services derived from the stock of physical assets 
and software. There are 86 asset types for fixed business equipment and 
software, structures, inventories, and land. Data on investments in physical
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. 

Among equipment, BLS provides additional detail in tables 5 and 6 on 
information processing equipment and software (IPES). IPES is composed of
four broad classes of assets: computers and related equipment, software, 
communications equipment, and other IPES equipment. Computers and related
equipment includes mainframe computers, personal computers, printers, 
terminals, tape drives, storage devices, and integrated systems. Software 
is comprised of pre-packaged, custom, and own-account software. 
Communications equipment is not further differentiated. Other IPES includes
medical equipment and related instruments, electromedical instruments, 
nonmedical instruments, photocopying and related equipment, and office and 
accounting machinery. 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 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 7, 2013 “Productivity and Costs” news release (USDL-13-0192). 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.




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 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. 

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, which accounted for approximately 74 percent of 
gross domestic product in 2011, includes all of gross domestic product except 
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 
excludes farms but includes agricultural services. All multifactor productivity
measures exclude government enterprises; however government enterprises are 
included in the business and nonfarm business sectors covered by the BLS 
quarterly productivity measures. The output measures are based on the revised
National Income and Product Accounts (NIPA) data released by BEA on 
January 30, 2013. 

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.

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. 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." 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” 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 obtained 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 sectors. 

Table 1. Private nonfarm business sector: productivity and related measures
for the 1987-2011 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     0.9     1.0     4.6     3.5     3.6     3.5       0.7
1989    0.8    -0.4     0.0     3.5     3.3     3.9     3.5       1.1

1990    1.9    -1.7     0.4     1.4     0.1     3.2     1.1       3.7
1991    1.7    -3.6    -1.0    -0.9    -1.1     2.8     0.1       5.5
1992    4.0     1.5     2.3     3.8     1.0     2.3     1.4       2.5
1993    0.6     0.4     0.3     3.6     3.3     3.2     3.3       0.3
1994    1.1     1.1     0.7     4.7     4.1     3.6     3.9       0.0

1995    0.5    -1.1     0.0     3.3     2.7     4.4     3.2       1.6
1996    2.6    -0.3     1.4     4.4     2.2     4.8     3.0       2.9
1997    1.5    -0.4     0.6     5.1     4.0     5.5     4.5       1.9
1998    2.9    -1.2     1.5     5.2     2.4     6.4     3.6       4.2
1999    3.3    -1.2     1.7     5.6     2.6     6.9     3.9       4.5

2000    3.4    -2.0     1.6     4.5     1.2     6.5     2.8       5.5
2001    3.1    -3.6     0.7     1.0    -1.6     4.8     0.3       7.0
2002    4.7    -1.3     2.4     1.9    -2.0     3.3    -0.4       6.0
2003    3.8     0.5     2.5     3.1    -0.4     2.7     0.6       3.3
2004    2.6     1.5     2.4     4.0     1.2     2.5     1.6       1.1

2005    1.6     0.4     1.1     3.4     2.0     3.0     2.3       1.2
2006    0.9    -0.1     0.4     3.2     2.5     3.3     2.8       1.0
2007    1.7    -0.8     0.3     2.2     1.2     3.0     1.8       2.5
2008    0.7    -4.0    -1.4    -1.5    -1.5     2.7    -0.1       4.9
2009    3.1    -5.2    -0.4    -4.4    -6.5     0.8    -4.0       8.8

2010    3.1     2.8     2.6     3.1     0.6     0.3     0.5       0.3
2011    0.7     1.9     1.0     2.7     2.2     0.8     1.7      -1.2

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



Table 2. Private business sector: productivity and related measures
for the 1987-2011 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     0.5     0.8     4.3     3.4     3.8     3.5       1.0
1989    1.0    -0.1     0.3     3.7     3.2     3.9     3.4       1.2

1990    2.2    -1.4     0.6     1.5    -0.1     3.0     0.9       3.6
1991    1.6    -3.4    -1.0    -0.8    -1.0     2.7     0.2       5.2
1992    4.2     1.8     2.6     4.0     1.0     2.1     1.4       2.3
1993    0.6     0.2     0.2     3.3     3.1     3.1     3.1       0.4
1994    0.9     1.4     0.7     5.0     4.5     3.5     4.2      -0.4

1995    0.1    -1.3    -0.3     2.9     2.7     4.3     3.2       1.4
1996    2.9     0.0     1.7     4.6     2.0     4.6     2.8       2.9
1997    1.8    -0.1     0.8     5.2     3.9     5.3     4.4       1.8
1998    3.0    -1.1     1.5     5.0     2.3     6.2     3.5       4.1
1999    3.5    -1.0     1.8     5.6     2.4     6.7     3.7       4.5

2000    3.5    -1.7     1.7     4.6     1.2     6.3     2.8       5.3
2001    3.2    -3.5     0.8     0.9    -1.8     4.6     0.1       7.0
2002    4.6    -1.2     2.4     2.0    -1.9     3.2    -0.4       5.8
2003    3.9     0.6     2.7     3.2    -0.4     2.6     0.5       3.3
2004    2.8     1.4     2.4     4.1     1.1     2.6     1.6       1.3

2005    1.7     0.3     1.0     3.5     2.0     3.2     2.4       1.4
2006    1.0    -0.1     0.4     3.1     2.4     3.2     2.7       1.0
2007    1.6    -0.7     0.3     2.1     1.2     2.8     1.7       2.3
2008    0.7    -3.7    -1.2    -1.3    -1.4     2.4    -0.1       4.6
2009    3.2    -4.8    -0.1    -4.2    -6.5     0.6    -4.1       8.5

2010    3.0     2.7     2.5     3.0     0.7     0.3     0.5       0.3
2011    0.4     1.4     0.7     2.4     2.1     1.0     1.7      -1.0

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



Table 3. Private nonfarm business sector: indexes of productivity and related
measures, 1987-2011(1)

Indexes 2005=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    66.3    111.1   82.3    54.2    75.5    48.8    65.9      59.6
1988    67.4    112.2   83.1    56.7    78.2    50.6    68.3      60.0
1989    67.9    111.8   83.1    58.7    80.8    52.6    70.7      60.7

1990    69.2    109.9   83.5    59.6    80.8    54.2    71.4      62.9
1991    70.3    105.9   82.7    59.1    79.9    55.8    71.5      66.4
1992    73.1    107.5   84.6    61.3    80.7    57.0    72.5      68.0
1993    73.6    107.9   84.8    63.5    83.4    58.9    74.9      68.2
1994    74.4    109.1   85.5    66.5    86.9    61.0    77.8      68.2

1995    74.7    107.9   85.5    68.7    89.2    63.7    80.3      69.3
1996    76.7    107.5   86.7    71.7    91.1    66.7    82.8      71.3
1997    77.8    107.1   87.2    75.4    94.8    70.4    86.5      72.6
1998    80.1    105.9   88.4    79.3    97.1    74.9    89.7      75.7
1999    82.7    104.6   89.9    83.8    99.6    80.1    93.2      79.1

2000    85.6    102.6   91.4    87.5   100.8    85.3    95.8      83.4
2001    88.3     98.9   92.0    88.4    99.2    89.3    96.0      89.2
2002    92.4     97.6   94.2    90.1    97.2    92.3    95.6      94.6
2003    95.8     98.1   96.6    92.9    96.9    94.7    96.2      97.7
2004    98.4     99.6   98.9    96.7    98.1    97.1    97.7      98.8

2005   100.0    100.0  100.0   100.0   100.0   100.0   100.0     100.0
2006   100.9     99.9  100.4   103.2   102.5   103.3   102.8     101.0
2007   102.6     99.1  100.7   105.4   103.8   106.4   104.7     103.6
2008   103.3     95.1   99.3   103.9   102.2   109.3   104.6     108.6
2009   106.5     90.1   98.9    99.3    95.6   110.2   100.4     118.2

2010   109.8     92.7  101.5   102.3    96.2   110.4   100.9     118.5
2011   110.6     94.4  102.5   105.1    98.3   111.4   102.6     117.1

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



Table 4. Private business sector: indexes of productivity and related
measures, 1987-2011(1)

Indexes 2005=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    65.4    109.0   81.3    54.2    76.4    49.7    66.6      60.0
1988    66.4    109.6   82.0    56.5    78.9    51.6    69.0      60.6
1989    67.1    109.4   82.2    58.6    81.5    53.6    71.3      61.3

1990    68.6    107.9   82.7    59.5    81.4    55.2    72.0      63.6
1991    69.7    104.2   81.9    59.1    80.5    56.7    72.1      66.9
1992    72.6    106.1   84.0    61.4    81.4    57.9    73.1      68.4
1993    73.1    106.4   84.2    63.4    83.9    59.7    75.3      68.7
1994    73.8    107.8   84.8    66.6    87.7    61.8    78.5      68.4

1995    73.8    106.4   84.6    68.5    90.0    64.4    81.0      69.4
1996    76.0    106.4   86.0    71.7    91.8    67.3    83.3      71.4
1997    77.3    106.4   86.7    75.4    95.4    70.9    86.9      72.7
1998    79.6    105.2   88.0    79.2    97.6    75.3    90.0      75.7
1999    82.4    104.1   89.6    83.6    99.9    80.3    93.3      79.1

2000    85.3    102.4   91.2    87.4   101.1    85.4    95.9      83.3
2001    88.0     98.8   91.9    88.3    99.3    89.3    96.0      89.1
2002    92.1     97.7   94.1    90.0    97.4    92.1    95.7      94.3
2003    95.7     98.3   96.6    92.9    97.0    94.5    96.1      97.4
2004    98.4     99.7   99.0    96.7    98.1    96.9    97.7      98.6

2005   100.0    100.0  100.0   100.0   100.0   100.0   100.0     100.0
2006   101.0     99.9  100.4   103.1   102.4   103.2   102.7     101.0
2007   102.6     99.2  100.8   105.2   103.6   106.1   104.4     103.4
2008   103.3     95.6   99.5   103.8   102.1   108.7   104.3     108.1
2009   106.6     91.0   99.4    99.5    95.5   109.4   100.1     117.3

2010   109.9     93.4  101.8   102.5    96.1   109.7   100.6     117.6
2011   110.3     94.8  102.5   105.0    98.2   110.8   102.4     116.4

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 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 software. The assets included are fixed business equipment, 
    structures, inventories, and land.

(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, 1987-2011

In percent


                        1987-   1987-   1990-   1995-   2000-   2007-   2010-
                        2011    1990    1995    2000    2007    2011    2011

All Assets               3.5     3.6     3.3     6.0     3.2     1.1     0.8

  Equipment              5.4     4.8     5.1    10.0     5.0     1.4     1.1

    All Information     10.0    11.0     9.6    17.8     8.1     3.9     3.0
    Processing
    Equipment & Software
    (IPES)

      Computers &       19.0    19.2    16.1    40.7    13.8     7.6     4.7
      related equipment

      Software          11.3    17.8    13.4    16.8     8.0     3.5     3.1

      Communication      6.8     6.0     5.3    10.7     7.1     4.0     3.3
      equipment

      Other IPES         3.0     2.8     4.0     3.5     3.0     1.5     1.0

    All other equipment  1.9     2.2     1.9     3.2     1.9     0.4     0.3

  Structures             1.9     3.0     2.0     2.2     1.5     1.3     0.6

  Residential rental     1.1     1.9     1.0     1.6     1.4    -0.2    -0.6
  capital

  Inventories            2.2     3.4     2.2     4.2     1.8    -0.7     3.5

  Land                   1.4     1.6     1.2     1.7     1.4     1.3     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.



Table 6. Compound average annual growth rates in real capital services
by asset type, private business sector, 1987-2011

In percent


                        1987-   1987-   1990-   1995-   2000-   2007-   2010-
                        2011    1990    1995    2000    2007    2011    2011

All Assets               3.4     3.5     3.1     5.8     3.1     1.1     1.0

  Equipment              5.3     4.6     4.9     9.8     4.9     1.4     1.1

    All Information     10.0    11.0     9.6    17.8     8.1     3.9     3.0
    Processing
    Equipment & Software
    (IPES)

      Computers &       19.0    19.2    16.1    40.7    13.8     7.6     4.7
      related equipment

      Software          11.3    17.8    13.4    16.8     7.9     3.5     3.1

      Communication      6.8     6.0     5.3    10.7     7.1     4.0     3.3
      equipment

      Other IPES         3.1     2.9     4.0     3.6     3.1     1.5     1.1

    All other equipment  1.9     2.2     1.8     3.0     1.8     0.4     0.5

  Structures             1.9     2.9     1.9     2.2     1.5     1.3     0.6

  Residential rental     1.1     1.9     1.0     1.6     1.4    -0.2    -0.6
  capital

  Inventories            2.0     2.9     2.2     4.1     1.7    -0.7     3.1

  Land                   1.4     2.9     1.3     1.3     1.3     0.7     1.8

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: April 09, 2013