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How is productivity measured?

How is productivity measured?

BLS publishes two basic types of productivity measures:

Labor productivity measures compare output to hours worked.

Multifactor productivity measures compare output to a combination of inputs.

Labor Productivity:

  • More timely
  • Easy to measure; data are generally available
  • Changes in other inputs change labor productivity

Multifactor Productivity:

  • Less timely
  • Requires more data to measure
  • Provides more information about the production process