Multifactor Productivity Trends News Release

For release 10:00 a.m. (EDT) Thursday, April 3, 2014	USDL- 14-0529
Technical information: (202) 691-5606 •  mfpweb@bls.gov  •  www.bls.gov/mfp
Media contact:              (202) 691-5902 •  PressOffice@bls.gov
		MULTIFACTOR PRODUCTIVITY TRENDS - 2012

Private nonfarm business sector multifactor productivity increased at a 1.5 
percent annual rate in 2012, the U.S. Bureau of Labor Statistics reported 
today. This gain in 2012 reflected a 3.8-percent increase in output and 
2.2-percent increase in the combined inputs of capital and labor. Capital
services grew by 1.4 percent, and labor input – which is the combined effect
of hours worked and labor composition – grew 2.7 percent, the largest gain
since 1997. Capital services per hour of all persons decreased at a rate of
0.8 percent in 2012 after falling 1.1 percent in 2011. The decreases in 2011
and 2012 are the only two years of decline in the measure which began in 
1987. (See chart 1, table A, table 1.)

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 of 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 1.4 percent 
annual rate in 2012, reflecting a 3.7-percent increase in output and 
2.3-percent increase in the combined inputs of capital and labor. The
increase in combined inputs of capital and labor was the largest since 2006. 
(See table A, table 2.)   
	
Historical trends in private nonfarm business

Multifactor productivity in private nonfarm business grew 1.0 percent annually
from 1987 to 2012. (See table A.)  For the 2007-2012 period, multifactor 
productivity grew 0.7 percent, due to a 0.8-percent increase in output coupled
with a 0.1-percent increase in combined inputs. In contrast, the 1.5-percent
increase in multifactor productivity in 2012 was a result of an increase in
output much larger than the increase in combined inputs. Output grew 3.8
percent over the year, while combined inputs grew 2.2 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 2007-2012 period, the contribution of capital intensity increased at 
a 0.9 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 1987-2012 period. This was due to multifactor productivity increasing
at a 0.7 percent annual rate from 2007 to 2012, slower than the gains of 1.4
percent that occurred during both the 1995-2000 and 2000-2007 periods. 
(See chart 2, table B.)

For the 2007-2012 period, real capital services of information processing 
equipment (IPE) grew 4.7 percent annually and intellectual property products 
(IPP) grew 3.0 percent annually in the private nonfarm business sector. 
(See table 5.) For the 2000-2007 period, the growth rates of IPE and IPP were
somewhat higher, 8.8 percent and 5.1 percent, respectively. For both periods, 
IPE was markedly lower than the 18.5-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 July 19, 2013, 
www.bls.gov/news.release/archives/prod3_07192013.pdf. Revisions to underlying
data affect multifactor productivity growth rates for the 2007-2012 period. 
(See table C.) In 2012, multifactor productivity growth in the private nonfarm
business sector was 1.5 percent, larger than the 0.9-percent increase 
previously reported, due to a 0.9 percentage point upward revision to output 
and a 0.2 percentage point upward revision to combined inputs. For 2011, 
multifactor productivity growth in the private nonfarm business sector was
0.7 percent, a 0.3 percentage point downward revision due to a downward 
revision to output and an upward revision to combined inputs.

Table A.  Compound annual growth rates for productivity, output, and inputs
in the private nonfarm business and private business sectors for selected
periods,1987-2012

Percent


                            1987-  1987-  1990-  1995-  2000-  2007-  2011-
                            2012   1990   1995   2000   2007   2012   2012

Private nonfarm business1

Productivity
  Multifactor Productivity2  1.0    0.5    0.5    1.4    1.4    0.7    1.5
    Output per hour of all
      persons                2.2    1.5    1.6    2.8    2.7    1.9    1.5
    Output per unit of
      capital services      -0.6   -0.5   -0.4   -0.9   -0.5   -0.5    2.3


Output                       2.9    3.3    3.0    5.1    2.8    0.8    3.8


Inputs

  Combined inputs3           2.0    2.8    2.5    3.6    1.4    0.1    2.2
   Labor input4              1.2    2.3    2.0    2.5    0.4   -0.5    2.7
     Hours                   0.7    1.7    1.3    2.2    0.1   -1.1    2.2
     Labor Composition5      0.5    0.6    0.7    0.3    0.3    0.6    0.5
   Capital services          3.5    3.8    3.4    6.0    3.3    1.3    1.4

Analytic ratio
  Capital services per
    hour of all persons      2.8    2.0    2.1    3.7    3.2    2.4   -0.8


Private business1

Productivity
  Multifactor Productivity2  1.0    0.6    0.5    1.6    1.4    0.7    1.4
    Output per hour of all
      persons                2.3    1.7    1.6    3.0    2.7    1.9    1.5
    Output per unit of
      capital services      -0.5   -0.5   -0.3   -0.6   -0.5   -0.4    2.2


Output                       2.9    3.3    2.9    5.1    2.8    0.8    3.7


Inputs

  Combined inputs3           1.9    2.7    2.5    3.5    1.3    0.1    2.3
   Labor input4              1.1    2.1    2.1    2.4    0.4   -0.5    2.7
     Hours                   0.7    1.6    1.4    2.0    0.0   -1.0    2.2
     Labor Composition5      0.5    0.6    0.7    0.3    0.3    0.5    0.5
   Capital services          3.4    3.8    3.3    5.8    3.3    1.3    1.5

Analytic ratio
  Capital services per
    hour of all persons      2.7    2.1    1.9    3.7    3.2    2.3   -0.7


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, 1987-2012

Percent



                            1987-  1987-  1990-  1995-  2000-  2007-  2011-
                            2012   1990   1995   2000   2007   2012   2012

Private nonfarm business1

Output per hour
of all persons               2.2    1.5    1.6    2.8    2.7    1.9    1.5

Contribution of
capital intensity2           0.9    0.7    0.7    1.2    1.0    0.9   -0.3

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

  Contribution of
  intellectual property
  products4                  0.3    0.3    0.3    0.3    0.3    0.3    0.0

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

Contribution of
labor composition5           0.3    0.4    0.5    0.2    0.2    0.4    0.3

Multifactor productivity6    1.0    0.5    0.5    1.4    1.4    0.7    1.5

  Contribution of R&D to
  multifactor productivity


Private business1

Output per hour
of all persons               2.3    1.7    1.6    3.0    2.7    1.9    1.5

Contribution of
capital intensity2           0.9    0.7    0.6    1.2    1.1    0.8   -0.3

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

  Contribution of
  intellectual property
  products4                  0.3    0.3    0.3    0.4    0.3    0.3    0.0

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

Contribution of
labor composition5           0.3    0.4    0.5    0.2    0.2    0.3    0.3

Multifactor productivity6    1.0    0.6    0.5    1.6    1.4    0.7    1.4

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. Intellectual property products per hour multiplied by its share of current
   dollar costs.
5. Labor composition multiplied by labor's share of current dollar costs.
6. 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.  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 1987-2012 period

Annual percent change from previous year

          Private Nonfarm Business      Private Business
Year      Previous      Revised         Previous      Revised


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


Technical Notes

Beginning with this release, historical data for multifactor productivity
in all sectors and industries reflect several important changes and revisions
to the data sources used to develop these series. In "Preview of the 2013 
Comprehensive Revision of the National Income and Product Accounts: Changes
in Definitions and Presentations,” Survey of Current Business, March 2013, 
and the 2014 Comprehensive Revision of the Industry Economic Accounts, the
Bureau of Economic Analysis (BEA) described several important changes to 
the national and annual industry accounts. Principal changes include the 
introduction of research and development and artistic originals as fixed 
investment, the capitalization of ownership transfer costs of residential
fixed assets, and revisions to the annual industry accounts. 

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 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 6, 2014 “Productivity and Costs” news release 
(USDL-14-0167). 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. 

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 2012. 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, 2014. 

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. 

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." 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 1987-2012 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     3.3     4.1     3.6       1.3

1990    2.0    -1.8     0.3     1.5     0.1     3.4     1.2       3.9
1991    2.0    -3.5    -0.8    -0.5    -1.1     3.1     0.3       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     0.9     0.6     4.7     4.1     3.7     4.0       0.1

1995    0.8    -0.9     0.3     3.6     2.7     4.5     3.3       1.7
1996    2.7    -0.3     1.4     4.6     2.2     4.8     3.1       3.0
1997    1.6    -0.2     0.7     5.3     4.1     5.5     4.5       1.9
1998    3.1    -0.9     1.6     5.3     2.4     6.3     3.7       4.0
1999    3.5    -0.9     1.8     5.8     2.6     6.7     3.9       4.4

2000    3.3    -2.0     1.4     4.4     1.2     6.5     2.9       5.5
2001    3.0    -3.8     0.5     0.8    -1.6     4.8     0.4       7.0
2002    4.4    -1.5     2.1     1.8    -2.0     3.3    -0.3       6.0
2003    3.7     0.4     2.4     3.1    -0.3     2.7     0.7       3.3
2004    3.1     1.9     2.8     4.5     1.2     2.5     1.7       1.2

2005    2.1     0.6     1.4     3.8     1.9     3.2     2.4       1.5
2006    1.0    -0.2     0.3     3.3     2.6     3.5     2.9       1.2
2007    1.7    -0.7     0.4     2.4     1.3     3.1     2.0       2.5
2008    0.8    -3.9    -1.3    -1.3    -1.4     2.7     0.0       4.8
2009    3.4    -5.0    -0.3    -4.1    -6.5     0.9    -3.8       8.8

2010    3.3     2.8     2.7     3.2     0.6     0.4     0.5       0.5
2011    0.4     1.5     0.7     2.5     2.3     1.0     1.8      -1.1
2012    1.5     2.3     1.5     3.8     2.7     1.4     2.2      -0.8

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



Table 2. Private business sector: productivity and related measures
for the 1987-2012 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    1.2    -0.2     0.4     3.9     3.2     4.0     3.5       1.3

1990    2.3    -1.6     0.6     1.6    -0.1     3.3     1.0       3.9
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       2.6
1993    0.2    -0.2    -0.2     3.0     3.2     3.2     3.2       0.4
1994    0.9     1.2     0.6     4.9     4.5     3.7     4.2      -0.3

1995    0.4    -1.0     0.0     3.2     2.7     4.3     3.2       1.4
1996    3.0     0.1     1.8     4.7     2.0     4.6     2.9       3.0
1997    1.9     0.0     0.9     5.3     3.9     5.3     4.4       1.8
1998    3.1    -0.8     1.6     5.2     2.3     6.1     3.5       4.0
1999    3.7    -0.7     2.0     5.8     2.4     6.5     3.7       4.4

2000    3.4    -1.7     1.6     4.5     1.2     6.3     2.9       5.3
2001    3.0    -3.8     0.5     0.7    -1.8     4.7     0.2       7.0
2002    4.4    -1.3     2.1     1.8    -1.9     3.1    -0.3       5.7
2003    3.9     0.6     2.6     3.2    -0.4     2.6     0.6       3.3
2004    3.2     1.9     2.9     4.6     1.1     2.6     1.6       1.3

2005    2.1     0.6     1.4     3.9     1.9     3.3     2.4       1.5
2006    1.0    -0.3     0.4     3.2     2.4     3.6     2.9       1.4
2007    1.6    -0.8     0.3     2.2     1.3     3.0     1.9       2.4
2008    0.8    -3.6    -1.2    -1.2    -1.4     2.5     0.0       4.6
2009    3.5    -4.6    -0.1    -3.9    -6.5     0.7    -3.9       8.5

2010    3.2     2.8     2.6     3.2     0.6     0.4     0.5       0.5
2011    0.3     1.2     0.6     2.4     2.2     1.2     1.8      -0.9
2012    1.5     2.2     1.4     3.7     2.7     1.5     2.3      -0.7

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



Table 3. Private nonfarm business sector: indexes of productivity and related
measures, 1987-2012(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    60.9    122.6   82.6    53.3    78.7    43.5    64.5      49.7
1988    62.0    123.5   83.4    55.7    81.4    45.1    66.8      50.2
1989    62.5    123.1   83.5    57.8    84.1    47.0    69.2      50.8

1990    63.8    120.8   83.8    58.7    84.2    48.6    70.0      52.8
1991    65.0    116.5   83.2    58.4    83.2    50.1    70.2      55.8
1992    67.8    118.3   85.3    60.8    84.1    51.4    71.3      57.3
1993    68.0    118.2   85.2    62.7    86.9    53.1    73.6      57.5
1994    68.7    119.3   85.7    65.6    90.5    55.0    76.6      57.6

1995    69.2    118.2   85.9    68.0    92.9    57.5    79.1      58.5
1996    71.1    117.9   87.2    71.1    95.0    60.3    81.5      60.3
1997    72.2    117.6   87.7    74.8    98.8    63.6    85.3      61.4
1998    74.4    116.6   89.2    78.8   101.2    67.6    88.4      63.9
1999    77.0    115.6   90.8    83.4   103.9    72.1    91.8      66.7

2000    79.6    113.2   92.1    87.0   105.2    76.9    94.5      70.3
2001    81.9    108.9   92.5    87.7   103.5    80.6    94.9      75.2
2002    85.6    107.3   94.4    89.3   101.4    83.3    94.5      79.8
2003    88.7    107.7   96.7    92.1   101.1    85.5    95.2      82.4
2004    91.5    109.8   99.5    96.3   102.4    87.7    96.8      83.4

2005    93.4    110.4  100.9    99.9   104.3    90.5    99.1      84.6
2006    94.3    110.2  101.2   103.2   107.0    93.7   102.0      85.6
2007    96.0    109.4  101.6   105.7   108.5    96.6   104.0      87.7
2008    96.7    105.2  100.3   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   103.3    102.8  102.7   103.2   100.6   100.4   100.5     100.5
2011   103.7    104.3  103.4   105.8   102.9   101.4   102.3      99.4
2012   105.3    106.8  105.0   109.8   105.7   102.8   104.6      98.6

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



Table 4. Private business sector: indexes of productivity and related
measures, 1987-2012(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    60.2    119.5   81.4    53.2    79.6    44.5    65.3      50.3
1988    61.1    119.9   82.0    55.5    82.3    46.3    67.7      51.0
1989    61.8    119.7   82.3    57.6    85.0    48.2    70.0      51.6

1990    63.2    117.8   82.8    58.6    84.9    49.7    70.7      53.7
1991    64.4    113.8   82.1    58.3    84.0    51.2    71.0      56.6
1992    67.3    116.0   84.4    60.8    84.9    52.4    72.0      58.0
1993    67.4    115.7   84.2    62.6    87.6    54.1    74.3      58.3
1994    68.0    117.1   84.8    65.6    91.5    56.0    77.4      58.1

1995    68.3    115.9   84.7    67.7    94.0    58.4    79.9      58.9
1996    70.4    116.0   86.2    70.9    95.8    61.1    82.2      60.7
1997    71.7    116.0   87.0    74.7    99.6    64.4    85.8      61.8
1998    73.9    115.0   88.4    78.6   101.9    68.3    88.9      64.3
1999    76.7    114.3   90.2    83.1   104.3    72.8    92.2      67.1

2000    79.3    112.3   91.6    86.9   105.6    77.4    94.8      70.6
2001    81.7    108.0   92.1    87.5   103.7    81.0    95.1      75.6
2002    85.2    106.7   94.0    89.1   101.8    83.5    94.8      79.9
2003    88.5    107.3   96.5    91.9   101.4    85.7    95.3      82.5
2004    91.4    109.4   99.2    96.1   102.5    87.9    96.9      83.6

2005    93.3    110.0  100.6    99.8   104.5    90.8    99.2      84.9
2006    94.3    109.6  101.0   103.1   107.0    94.0   102.0      86.0
2007    95.8    108.7  101.3   105.3   108.4    96.9   104.0      88.1
2008    96.6    104.9  100.1   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  102.6   103.2   100.6   100.4   100.5     100.5
2011   103.6    104.0  103.2   105.7   102.9   101.6   102.4      99.6
2012   105.1    106.3  104.7   109.6   105.7   103.1   104.7      98.8

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, 1987-2012

Percent


                        1987-   1987-   1990-   1995-   2000-   2007-   2011-
                        2012    1990    1995    2000    2007    2012    2012

All Assets               3.5     3.8     3.4     6.0     3.3     1.3     1.4

  Equipment              4.6     3.8     4.2     9.1     4.6     1.3     1.8

    All Information      9.7     8.9     8.2    18.5     8.8     4.7     2.8
    Processing
    Equipment (IPE)

      Computers &       18.3    18.8    16.0    40.7    14.0     6.8     1.0
      related equipment

      Communication      7.3     5.9     5.2    10.8     8.4     5.2     5.2
      equipment

      Other IPE          2.9     2.7     3.7     3.4     2.9     1.7     1.1

    All other equipment  2.3     1.5     2.2     4.6     2.7     0.0     1.4

  Structures             1.7     3.0     2.0     2.2     1.3     0.8     0.5

  Intellectual property
  products               6.0     8.2     6.7     8.5     5.1     3.0     2.7

      Research           3.9     5.7     4.2     4.6     2.9     3.2     2.7
         &    
      Development
      Software          10.8    17.7    13.5    16.9     7.7     3.0     2.7

      Artistic           3.4     3.8     3.5     4.0     3.6     2.4     2.6
      Originals
  Residential rental     1.6     2.0     1.5     2.2     2.5    -0.2    -0.6
  capital

  Inventories            2.4     3.4     2.3     4.4     2.3     0.3     3.6

  Land                   0.8     1.6     1.1     1.3     0.5    -0.2     0.7

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, 1987-2012

Percent


                        1987-   1987-   1990-   1995-   2000-   2007-   2011-
                        2012    1990    1995    2000    2007    2012    2012

All Assets               3.4     3.8     3.3     5.8     3.3     1.3     1.5

  Equipment              4.5     3.5     4.0     8.9     4.6     1.4     1.8

    All Information      9.7     8.9     8.2    18.5     8.8     4.7     2.8
    Processing
    Equipment (IPE)

      Computers &       18.3    18.8    16.0    40.7    14.0     6.8     1.0
      related equipment

      Communication      7.3     5.9     5.2    10.8     8.4     5.2     5.2
      equipment

      Other IPE          3.0     2.7     3.7     3.4     3.0     1.8     1.2

    All other equipment  2.2     1.2     2.0     4.5     2.6     0.0     1.4

  Structures             1.7     2.9     1.9     2.1     1.2     0.8     0.5

  Intellectual property
  products               6.0     8.2     6.7     8.5     5.1     3.0     2.7

      Research           3.9     5.7     4.2     4.6     2.9     3.2     2.7
         &    
      Development
      Software          10.8    17.7    13.5    16.8     7.7     3.0     2.7

      Artistic           3.4     3.8     3.5     4.0     3.6     2.4     2.6
      Originals
  Residential rental     1.6     2.0     1.5     2.2     2.5    -0.2    -0.6
  capital

  Inventories            2.3     2.9     2.3     4.2     2.2     0.2     3.3

  Land                   0.9     3.3     0.9     0.8     0.7    -0.2     1.4

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 03, 2014