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For release 10:00 am (EDT) March 20, 2019 USDL-19-0450 Technical information: (202) 691-5606 • mfpweb@bls.gov • www.bls.gov/mfp Media contact: (202) 691-5902 • PressOffice@bls.gov MULTIFACTOR PRODUCTIVITY TRENDS – 2018 Private nonfarm business sector multifactor productivity increased 1.0 percent in 2018, the U.S. Bureau of Labor Statistics reported today. (See chart 1, table A.) This 2018 increase reflects a 3.5-percent increase in output and a 2.6-percent increase in the combined inputs of capital and labor. Capital services grew by 2.9 percent and labor input–which is the combined effect of hours worked and labor composition–grew by 2.4 percent. Multifactor productivity increased 0.4 percent in 2017. (See table 1.) Multifactor productivity is calculated by dividing an index of real output by an index of combined units of labor input and capital services. Multifactor productivity annual measures differ from BLS quarterly labor productivity (output per hour worked) measures because the former also includes the influences of capital services and shifts in the composition of the workforce. Measures for the most recent year of this release are preliminary estimates. See the Technical Notes for additional information. Private business sector multifactor productivity also increased at a 1.0-percent annual rate in 2018. A 3.5-percent increase in output outpaced a 2.5-percent increase in the combined inputs of capital and labor in 2018. (See table A, table 2.) 2018 Multifactor Productivity Trends The 1.0-percent growth of multifactor productivity in the nonfarm business sector is 0.2 percentage point higher than the average annual rate of 0.8 percent from the 1987-2018 period. For the 2007-18 period, reflecting the most recent business cycle, multifactor productivity grew at an average annual rate of 0.4 percent as output grew 1.9 percent and combined inputs rose 1.5 percent. The average annual increase in combined inputs reflected a 2.3-percent increase in capital services along with a 0.9-percent increase in labor input. (See table A.) The 1.0-percent multifactor productivity increase was the largest increase since the 2010 increase of 2.6 percent. Over the last 8 years, labor productivity growth has been at or below the 1.3 annual percent growth rate of 2018. 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. The contribution of capital intensity grew 0.7 percentage points in the 2007-18 period and remains the largest contributor to labor productivity growth in the period. (See chart 2.) The contributions of labor composition decelerated slightly between the 2000-07 period and the 2007-18 period, to 0.2 percent. (See chart 2, table B.) Revisions to 2017 Multifactor Productivity Growth In 2017, the multifactor productivity growth rate in the private nonfarm business sector was revised down from an average annual rate of 0.9 percent to an average annual rate of 0.4 percent due to a downward revision to output of 0.2 percentage point and an upward revision to combined inputs of 0.3 percentage point. In 2016, the multifactor productivity growth rate in the private nonfarm business sector remained as previously published, declining at an average annual rate of 0.6 percent. (See table D.) Historical Revisions to Capital Services and Labor Input 1987-2017 The capital services and labor input estimates in this release reflect important data source revisions to capital and an improvement in methodology to estimating labor composition. The capital measures in this release reflect the July 27, BEA 2018 Comprehensive Update of the National Income and Product Accounts (NIPA) as well as the November 1, 2018 Gross Domestic Product by Industry: Second Quarter 2018. Historical revisions in these accounts had a notable impact on the measures of capital services due to the following: • Incorporation of an estimate of the value of capital services in measures of own-account investment in software and in R&D beginning with 2007, bringing these measures into greater alignment with economic theory. • A reclassification of R&D for software from private fixed investment in software to private fixed investment in R&D beginning with 1987, resolving an inconsistency between the NIPA measures of R&D and the source data underlying the NIPA measures. The labor composition component of labor input incorporated a revised smoothing methodology to better account for missing data. Additionally, an educational attainment distinction of college/no college has been added. The impact to the long-term growth estimates from the labor composition update were negligible; however, year to year estimates can show moderate revisions. These revisions span the entire period and are mostly derived from the improved smoothing method rather than a change to any trends. The impact of these data source and methodology revisions in the recent period can be seen on Table D. The impact of the revisions to capital services span the 1987-2017 time series. Average annual growth of capital services in the long term has been revised up 0.2 percent. In the most recent business cycle, 2007-17, the revisions were more pronounced with a 0.6-percentage point increase in the average annual growth. (See Chart 3.) The revision to capital services in the most recent business cycle can be attributed to the changes in the source data treatment of software and research and development (R&D). Software and R&D assets, along with artistic originals, make up the intellectual property products category of capital which experienced a 1.1-percentage point upward revision over the 2007-16 period. A comparison of the latest business cycle and the long term growth in the intellectual property products category depicting the most notable revisions are found in Chart 4. Table A. Productivity, output, and inputs in the private nonfarm business and private business sectors for selected periods,1987-2018 Average annual growth rates 1987- 1987- 1990- 1995- 2000- 2007- 2016- 2017- 2018 1990 1995 2000 2007 2018 2017 2018 Private nonfarm business1 Productivity Multifactor Productivity2 0.8 0.4 0.6 1.4 1.4 0.4 0.4 1.0 Labor productivity3 2.0 1.5 1.7 2.9 2.8 1.3 1.1 1.3 Output per unit of capital -0.6 -0.6 -0.5 -0.8 -0.6 -0.5 -0.2 0.6 Output 2.9 3.2 2.9 5.1 2.9 1.9 2.7 3.5 Combined inputs4 2.1 2.8 2.4 3.7 1.4 1.5 2.3 2.6 Labor input5 1.4 2.3 1.8 2.5 0.4 0.9 1.9 2.4 Hours 0.9 1.7 1.2 2.2 0.1 0.5 1.6 2.2 Labor Composition6 0.4 0.5 0.6 0.4 0.4 0.4 0.3 0.2 Capital services 3.5 3.8 3.5 6.0 3.5 2.3 2.9 2.9 Analytic ratio Capital intensity7 2.6 2.1 2.3 3.7 3.4 1.8 1.3 0.7 Private business1 Productivity Multifactor Productivity2 0.9 0.5 0.5 1.6 1.4 0.4 0.4 1.0 Labor productivity3 2.0 1.6 1.6 3.0 2.8 1.3 1.1 1.4 Output per unit of capital -0.5 -0.5 -0.4 -0.6 -0.5 -0.4 -0.2 0.7 Output 2.9 3.2 2.9 5.1 2.9 1.9 2.6 3.5 Combined inputs4 2.0 2.7 2.4 3.5 1.4 1.4 2.2 2.5 Labor input5 1.3 2.1 1.9 2.4 0.4 0.9 1.8 2.3 Hours 0.9 1.6 1.3 2.0 0.0 0.6 1.5 2.1 Labor Composition6 0.4 0.5 0.6 0.4 0.4 0.4 0.3 0.2 Capital services 3.4 3.8 3.3 5.8 3.4 2.3 2.9 2.8 Analytic ratio Capital intensity7 2.5 2.1 2.1 3.7 3.4 1.7 1.3 0.7 1. Excludes government enterprises. 2. Output per combined units of labor input and capital services. 3. Output per hour worked. 4. The growth rate of each input is weighted by its share of current dollar costs. 5. Hours at work by age, education, and gender group are weighted by each group’s share of total wages. 6. Ratio of labor input to hours. 7. Capital services per hour. Table B. Labor productivity and the contributions of capital intensity, labor composition, and multifactor productivity to labor productivity in the private nonfarm business and private business sectors for selected periods,1987-2018 Average annual growth rates/ percentage point 1987- 1987- 1987- 1990- 1995- 2000- 2007- 2007- 2016- 2017- 2017 2018* 1990 1995 2000 2007 2017 2018* 2017 2018* Private nonfarm business1 Labor productivity Growth2 2.0 2.0 1.5 1.7 2.9 2.8 1.3 1.3 1.1 1.3 Contribution of capital intensity3 0.9 0.9 0.7 0.7 1.2 1.1 0.7 0.7 0.5 0.2 Contribution of information processing equipment(IPE)4 0.3 NA 0.3 0.3 0.6 0.4 0.2 NA 0.2 NA Contribution of research and development (R&D)5 0.1 NA 0.1 0.1 0.1 0.1 0.1 NA 0.1 NA Contribution of intellectual property products (IPP) excluding R&D6 0.2 NA 0.2 0.2 0.2 0.2 0.2 NA 0.2 NA Contribution of capital services excluding IPP and IPE 0.2 NA 0.1 0.2 0.2 0.4 0.2 NA 0.0 NA Contribution of labor composition7 0.3 0.3 0.4 0.4 0.2 0.3 0.3 0.2 0.2 0.1 Multifactor productivity Growth8 0.8 0.8 0.4 0.6 1.4 1.4 0.3 0.4 0.4 1.0 Contribution of R&D to multifactor productivity 0.2 NA 0.2 0.2 0.2 0.2 0.1 NA 0.1 NA Private business1 Labor productivity Growth2 2.0 2.0 1.6 1.6 3.0 2.8 1.3 1.3 1.1 1.4 Contribution of capital intensity3 0.9 0.9 0.7 0.7 1.2 1.1 0.7 0.6 0.5 0.3 Contribution of information processing equipment(IPE)4 0.3 NA 0.3 0.3 0.6 0.4 0.2 NA 0.2 NA Contribution of research and development (R&D)5 0.1 NA 0.1 0.1 0.1 0.1 0.1 NA 0.1 NA Contribution of intellectual property products (IPP) excluding R&D6 0.2 NA 0.2 0.2 0.2 0.2 0.2 NA 0.2 NA Contribution of capital services excluding IPP and IPE 0.2 NA 0.2 0.1 0.2 0.4 0.2 NA 0.0 NA Contribution of labor composition7 0.3 0.3 0.4 0.4 0.2 0.3 0.2 0.2 0.2 0.1 Multifactor productivity Growth8 0.9 0.9 0.5 0.5 1.6 1.4 0.4 0.4 0.4 1.0 1. Excludes government enterprises. 2. Output per hour worked. 3. Capital services per hour multiplied by capital's share of current dollar costs. 4. Information processing equipment per hour multiplied by its share of current dollar costs. 5. Research and development per hout multiplied by its share of current dollar costs. 6. Software and artistic originals per hour multiplied by their share of current dollar costs. 7. Labor composition multiplied by labor's share of current dollar costs. 8. Output per unit of combined labor and capital services. * NA identifies where data for the most recent year are not available. Note: Multifactor productivity plus contribution of capital intensity and labor composition may not sum to output per hour due to independent rounding. Contributions of the components of capital intensity may not sum to the total contribution of capital intensity due to independent rounding. Table C. Real capital services by asset type in the private nonfarm business and private business sectors for selected periods, 1987-2016 Average annual growth rates 1987- 1987- 1990- 1995- 2000- 2007- 2016- 2017 1990 1995 2000 2007 2017 2017 Private nonfarm business1 All Assets 3.5 3.8 3.5 6.0 3.5 2.3 2.9 Equipment 4.9 3.9 4.3 9.3 5.0 3.2 3.9 Information Processing Equipment (IPE) 9.9 8.7 8.6 18.8 9.6 7.0 7.0 Computers & related equipment 16.7 18.5 17.4 40.7 14.6 6.9 3.9 Communication equipment 9.0 6.2 5.3 10.7 9.6 10.7 12.6 Other IPE 2.9 2.0 3.2 3.4 3.1 2.7 3.5 All other equipment 2.5 1.7 2.2 4.8 2.9 1.6 2.6 Structures 1.6 2.9 2.0 2.2 1.3 1.0 1.2 Intellectual property products (IPP) 6.0 8.0 6.8 8.2 5.5 4.4 5.7 Research & Development 4.4 5.8 5.1 5.6 4.2 3.2 4.2 Software 10.6 17.5 12.7 15.6 8.3 6.8 8.5 Artistic Originals 3.2 3.8 3.5 4.0 3.6 2.2 2.3 Rental residential 1.2 2.0 0.9 1.9 2.2 0.0 0.7 capital Inventories 2.6 3.4 2.3 4.3 2.2 2.0 0.6 Land 0.8 1.4 1.3 1.2 0.7 0.1 1.2 Private business1 All Assets 3.4 3.8 3.3 5.8 3.4 2.2 2.9 Equipment 4.8 3.6 4.1 9.1 4.9 3.2 3.8 Information Processing Equipment (IPE) 10.0 8.7 8.6 18.8 9.6 7.1 6.9 Computers & related equipment 16.7 18.5 17.4 40.7 14.6 6.9 3.9 Communication equipment 9.0 6.2 5.3 10.7 9.6 10.7 12.6 Other IPE 3.0 2.1 3.2 3.4 3.3 2.9 3.5 All other equipment 2.4 1.4 2.0 4.7 2.8 1.6 2.6 Structures 1.6 2.8 1.9 2.2 1.3 1.0 1.2 Intellectual property products (IPP) 6.0 8.1 6.8 8.2 5.5 4.4 5.7 Research & Development 4.4 5.8 5.1 5.6 4.2 3.2 4.2 Software 10.6 17.5 12.7 15.6 8.3 6.8 8.5 Artistic Originals 3.2 3.8 3.5 4.0 3.6 2.2 2.3 Rental residential 1.2 2.0 0.9 1.9 2.2 0.0 0.7 capital Inventories 2.5 2.9 2.3 4.2 2.1 1.9 0.5 Land 0.7 2.9 1.1 0.8 0.7 -0.1 1.2 1. Excludes government enterprises. Note: Real capital services by asset type are not available for the most recent reference year. For a brief discussion of methods used in preparing these data, see Technical Notes in this release. Table D. Previous and revised multifactor productivity and related measures for the 2016-2017 and 2015-2016 periods Inputs Multifactor Real value- Combined Capital Sector productivity1 added output inputs2 Labor3 services Annual percent change, 2016-2017 Private nonfarm business Revised 0.4 2.7 2.3 1.9 2.9 Private business Revised 0.4 2.6 2.2 1.8 2.9 Annual percent change, 2015-2016 Private nonfarm business Previous 0.9 2.9 2.0 1.9 2.2 Revised -0.6 1.6 2.2 1.8 3.0 Private business Previous 0.8 2.7 2.0 1.8 2.2 Revised -0.5 1.6 2.2 1.8 2.9 1. Output per combined units of labor input and capital services. 2. The growth rate of each input is weighted by its share of current dollar costs. 3. Hours at work by age, education, and gender group, weighted by each group’s share of total wages.
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 the Bureau of Economic Analysis (BEA). Data on inventories are estimated using information from BEA and the Internal Revenue Service (IRS) Corporation Income Returns. Data for land in the farm sector are obtained from the U.S. Department of Agriculture (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 table C 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 and custom. 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. Research and Development also includes own-account R&D for software which had previously been classified in software. 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. Capital services measures constructed for the most recent year are preliminary and are based on less detail than the rest of the series. These measures consist of 6 asset types as opposed to the 90 asset types for fixed business equipment, structures, inventories, land, and intellectual property products included in estimates for all previous years. The assets included in the most recent year are structures, fixed business equipment, intellectual property products, inventories, rental residences, and land. Investments, depreciation, and capital income are estimated for each of these six aggregates. Capital services are calculated by a chained superlative Tornqvist index combining stocks of the six asset categories, weighted by capital income shares. See the June 2005 Monthly Labor Review article, “Preliminary estimates of multifactor productivity growth” located at www.bls.gov/opub/mlr/2005/06/art3full.pdf. Labor Input Labor input in private business and private nonfarm business is obtained by a chained superlative Tornqvist aggregation of the hours worked, 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 (CES) program. Weekly paid hours are adjusted to hours worked using data from the National Compensation Survey (NCS) for 1996 forward and data from the BLS Hours at Work survey, conducted for this purpose, prior to 1990. Between 1990 and 1995, weekly paid hours are adjusted to hours at work using a combination of NCS and Hours at Work survey data. Hours worked for nonproduction and supervisory workers are derived using data from the Current Population Survey (CPS), CES, and NCS. The hours worked of proprietors, unpaid family workers, and farm employees are derived from the CPS. Hours worked data reflect estimates in the February 6, 2019 “Productivity and Costs” news release (USDL-19-0188). The estimates of 2018 hours worked for the private nonfarm business and private business sectors are extrapolated from the hours worked reported in the nonfarm business and business sectors, respectively, in the February 6, 2019 “Productivity and Costs” news release (USDL-19-0188). 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. The index of hours worked of all persons including employees, proprietors, and unpaid family workers, classified by age, education, and gender are weighted together using median wages to compute the labor composition estimates reflecting the different skillset of the work force. Additional information concerning data sources and methods of measuring labor composition can be found in “Changes in the Composition of Labor for BLS Multifactor Productivity Measures, 2014” (www.bls.gov/mfp/mprlabor.pdf). Combined Inputs Labor input and capital services are combined using chained superlative Tornqvist aggregation, applying weights that represent each component's average 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 becomes. In a production process, profit-maximizing/cost-minimizing firms adjust the factor proportions of capital and labor when the price of one factor is less than the other factor; there is 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 www.bls.gov/mfp/mprdload.htm. Value-Added 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 75 percent of GDP in 2017. Additionally, the private nonfarm business sector excludes farms from the private business sector, but includes agricultural services. Multifactor productivity measures exclude government enterprises, while the BLS quarterly Productivity and Costs series include them. The output measures are based on the National Income and Product Accounts (NIPA) data released by BEA on February 28, 2019. The estimates of 2018 output for the private nonfarm business and private business sectors are extrapolated from the output reported in the nonfarm business and business sectors, respectively, in the March 7, 2019 “Productivity and Costs” news release (USDL-19-00358). 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 combined inputs 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 aggregating different vintages of 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" at 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 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 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” (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” (www.bls.gov/mfp/mprtech.pdf). General information is available on the BLS website at www.bls.gov/mfp/mprover.htm. Additional data not contained in the release can be obtained at www.bls.gov/mfp. Comprehensive tables can be downloaded at www.bls.gov/mfp/mprdload.htm, including 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 1987-2018 period1 Annual percent change from previous year Output Combined per units of unit of Multi- labor and Labor capital factor Value- Capital capital produc- servic- Product- added Servic- servic- Capital Year tivity2 es ivity3 Output4 Labor5 es6 es7 Intensity8 1988 1.7 0.7 1.0 4.6 3.3 3.8 3.5 1.0 1989 0.9 -0.5 0.2 3.7 3.2 4.2 3.5 1.4 1990 1.8 -1.9 0.1 1.5 0.3 3.5 1.3 3.9 1991 1.9 -3.6 -0.4 -0.5 -1.7 3.2 -0.1 5.7 1992 4.5 1.4 2.9 4.0 0.4 2.6 1.1 3.0 1993 0.3 -0.3 -0.4 3.2 3.5 3.5 3.5 0.6 1994 0.8 0.8 0.5 4.6 4.3 3.8 4.1 0.0 1995 1.2 -0.9 0.3 3.5 2.6 4.5 3.2 2.2 1996 2.2 -0.3 1.0 4.5 2.8 4.9 3.5 2.5 1997 1.8 -0.4 0.8 5.1 3.6 5.6 4.2 2.3 1998 3.1 -0.9 1.5 5.4 2.6 6.3 3.8 4.0 1999 3.8 -0.9 2.1 5.7 2.1 6.7 3.6 4.8 2000 3.4 -1.6 1.5 4.7 1.6 6.5 3.1 5.1 2001 3.1 -3.8 0.6 0.9 -1.8 4.9 0.3 7.2 2002 4.5 -1.6 2.1 1.7 -2.0 3.4 -0.3 6.2 2003 3.9 0.4 2.4 3.3 -0.1 2.9 0.9 3.5 2004 2.9 1.5 2.2 4.2 1.6 2.7 2.0 1.4 2005 2.2 0.5 1.5 4.0 1.8 3.4 2.4 1.7 2006 1.2 -0.2 0.5 3.5 2.6 3.8 3.0 1.4 2007 1.9 -0.8 0.5 2.5 1.2 3.4 2.0 2.7 2008 1.2 -3.8 -1.2 -1.0 -1.4 2.9 0.1 5.2 2009 4.0 -4.7 0.3 -3.6 -6.7 1.1 -3.9 9.2 2010 3.3 2.5 2.6 3.3 0.6 0.8 0.7 0.8 2011 -0.1 0.3 -0.2 2.0 2.5 1.7 2.2 -0.4 2012 0.8 1.2 0.7 3.2 2.8 2.0 2.5 -0.4 2013 0.5 -0.3 0.0 2.3 2.0 2.5 2.2 0.8 2014 0.8 0.3 0.5 3.1 2.5 2.8 2.6 0.5 2015 1.3 0.5 0.9 3.5 2.4 3.0 2.7 0.8 2016 0.1 -1.4 -0.6 1.6 1.8 3.0 2.2 1.5 2017 1.1 -0.2 0.4 2.7 1.9 2.9 2.3 1.3 2018 1.3 0.6 1.0 3.5 2.4 2.9 2.6 0.7 See footnotes following table 4. Source: Bureau of Labor Statistics
Table 2. Private business sector: productivity and related measures for the 1987-2018 period1 Annual percent change from previous year Output Combined per units of unit of Multi- labor and Labor capital factor Value- Capital capital produc- servic- Product- added Servic- servic- Capital Year tivity2 es ivity3 Output4 Labor5 es6 es7 Intensity8 1988 1.5 0.4 0.8 4.3 3.2 3.9 3.5 1.2 1989 1.2 -0.3 0.4 3.8 3.1 4.1 3.4 1.5 1990 2.1 -1.7 0.4 1.6 0.1 3.3 1.2 3.9 1991 1.8 -3.4 -0.4 -0.5 -1.6 3.0 -0.1 5.4 1992 4.7 1.7 3.1 4.2 0.4 2.4 1.1 2.9 1993 0.2 -0.4 -0.4 2.9 3.3 3.3 3.3 0.6 1994 0.6 1.1 0.5 4.8 4.6 3.7 4.3 -0.5 1995 0.8 -1.1 0.0 3.1 2.7 4.3 3.2 1.9 1996 2.5 0.0 1.3 4.7 2.6 4.7 3.3 2.5 1997 2.0 -0.2 1.1 5.2 3.4 5.4 4.1 2.2 1998 3.1 -0.8 1.5 5.2 2.5 6.1 3.7 4.0 1999 4.0 -0.7 2.2 5.7 1.9 6.5 3.4 4.8 2000 3.5 -1.4 1.7 4.8 1.6 6.3 3.1 4.9 2001 3.1 -3.8 0.6 0.8 -1.9 4.8 0.2 7.2 2002 4.4 -1.4 2.1 1.8 -2.0 3.2 -0.3 5.9 2003 4.1 0.6 2.5 3.3 -0.2 2.7 0.8 3.5 2004 3.0 1.5 2.3 4.3 1.5 2.7 1.9 1.5 2005 2.3 0.5 1.5 4.0 1.8 3.5 2.4 1.8 2006 1.2 -0.3 0.5 3.5 2.5 3.8 3.0 1.6 2007 1.8 -0.8 0.5 2.4 1.1 3.2 1.9 2.6 2008 1.1 -3.6 -1.1 -1.0 -1.4 2.7 0.1 4.9 2009 4.1 -4.4 0.4 -3.5 -6.7 1.0 -3.9 8.9 2010 3.3 2.4 2.6 3.3 0.6 0.8 0.7 0.8 2011 -0.2 0.1 -0.3 1.9 2.5 1.8 2.2 -0.4 2012 0.7 1.0 0.6 3.1 2.7 2.1 2.5 -0.3 2013 0.9 -0.1 0.4 2.5 1.9 2.5 2.1 0.9 2014 0.7 0.3 0.4 3.1 2.6 2.8 2.7 0.3 2015 1.2 0.7 0.9 3.6 2.6 2.9 2.7 0.5 2016 0.1 -1.2 -0.5 1.6 1.8 2.9 2.2 1.4 2017 1.1 -0.2 0.4 2.6 1.8 2.9 2.2 1.3 2018 1.4 0.7 1.0 3.5 2.3 2.8 2.5 0.7 See footnotes following table 4. Source: Bureau of Labor Statistics
Table 3. Private nonfarm business sector: indexes of productivity and related measures, 1987-2018 period1 Indexes 2012=100 Output Combined per units of unit of Multi- labor and Labor capital factor Value- Capital capital produc- servic- Product- added Servic- servic- Capital Year tivity2 es ivity3 Output4 Labor5 es6 es7 Intensity8 1987 57.5 119.4 79.5 48.5 75.0 40.7 61.0 48.2 1988 58.5 120.2 80.4 50.8 77.5 42.2 63.2 48.6 1989 59.0 119.6 80.5 52.6 80.0 44.0 65.4 49.3 1990 60.1 117.3 80.6 53.4 80.2 45.5 66.3 51.2 1991 61.2 113.1 80.3 53.1 78.8 47.0 66.2 54.1 1992 63.9 114.6 82.6 55.3 79.2 48.2 66.9 55.8 1993 64.1 114.3 82.3 57.0 82.0 49.9 69.3 56.1 1994 64.6 115.2 82.7 59.6 85.5 51.8 72.1 56.1 1995 65.4 114.1 82.9 61.7 87.7 54.1 74.5 57.3 1996 66.8 113.8 83.7 64.5 90.2 56.7 77.1 58.7 1997 68.0 113.3 84.4 67.8 93.4 59.9 80.3 60.0 1998 70.1 112.3 85.7 71.5 95.9 63.6 83.4 62.4 1999 72.8 111.3 87.4 75.5 97.9 67.9 86.4 65.4 2000 75.3 109.5 88.8 79.1 99.5 72.3 89.1 68.8 2001 77.6 105.3 89.3 79.8 97.7 75.8 89.4 73.7 2002 81.1 103.6 91.1 81.2 95.7 78.4 89.1 78.2 2003 84.2 104.0 93.3 83.9 95.6 80.6 89.9 81.0 2004 86.7 105.5 95.4 87.4 97.1 82.8 91.6 82.1 2005 88.6 106.1 96.9 90.9 98.9 85.7 93.8 83.5 2006 89.7 105.8 97.3 94.1 101.5 88.9 96.7 84.7 2007 91.3 105.0 97.9 96.4 102.6 91.9 98.6 87.0 2008 92.4 100.9 96.7 95.4 101.2 94.6 98.7 91.6 2009 96.1 96.2 96.9 92.0 94.4 95.6 94.9 100.0 2010 99.4 98.6 99.5 95.0 94.9 96.4 95.5 100.8 2011 99.2 98.9 99.3 96.9 97.3 98.0 97.6 100.4 2012 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 2013 100.5 99.7 100.0 102.3 102.0 102.5 102.2 100.8 2014 101.3 100.0 100.5 105.5 104.6 105.4 104.9 101.3 2015 102.6 100.5 101.4 109.2 107.1 108.7 107.7 102.1 2016 102.8 99.1 100.8 111.0 109.0 111.9 110.1 103.6 2017 103.9 98.9 101.2 114.0 111.1 115.2 112.6 105.0 2018 105.3 99.6 102.1 118.0 113.8 118.5 115.5 105.7 See footnotes following table 4. Source: Bureau of Labor Statistics
Table 4. Private business sector: indexes of productivity and related measures, 1987-2018 period1 Indexes 2012=100 Output Combined per units of unit of Multi- labor and Labor capital factor Value- Capital capital produc- servic- Product- added Servic- servic- Capital Year tivity2 es ivity3 Output4 Labor5 es6 es7 Intensity8 1987 57.0 116.6 78.7 48.6 75.8 41.7 61.8 48.9 1988 57.8 117.0 79.3 50.7 78.3 43.4 64.0 49.4 1989 58.5 116.7 79.6 52.7 80.7 45.1 66.2 50.1 1990 59.7 114.7 79.9 53.5 80.8 46.6 66.9 52.1 1991 60.8 110.8 79.6 53.2 79.5 48.0 66.9 54.9 1992 63.7 112.7 82.0 55.4 79.8 49.2 67.6 56.5 1993 63.8 112.3 81.7 57.1 82.5 50.8 69.8 56.8 1994 64.2 113.5 82.1 59.8 86.3 52.7 72.9 56.6 1995 64.8 112.3 82.1 61.7 88.6 55.0 75.2 57.7 1996 66.4 112.3 83.2 64.6 90.9 57.5 77.7 59.1 1997 67.7 112.1 84.0 67.9 94.0 60.6 80.9 60.4 1998 69.9 111.2 85.3 71.5 96.3 64.3 83.8 62.8 1999 72.7 110.4 87.2 75.6 98.2 68.5 86.7 65.8 2000 75.2 108.9 88.7 79.2 99.8 72.8 89.4 69.1 2001 77.6 104.8 89.2 79.9 97.9 76.3 89.6 74.1 2002 81.0 103.3 91.0 81.3 96.0 78.7 89.3 78.4 2003 84.3 103.9 93.4 84.0 95.8 80.9 90.0 81.1 2004 86.9 105.5 95.5 87.6 97.2 83.1 91.7 82.3 2005 88.8 106.0 97.0 91.1 99.0 86.0 93.9 83.8 2006 89.9 105.6 97.4 94.3 101.5 89.2 96.7 85.1 2007 91.5 104.8 97.9 96.5 102.6 92.1 98.5 87.4 2008 92.6 101.0 96.8 95.5 101.2 94.6 98.7 91.7 2009 96.4 96.5 97.2 92.2 94.4 95.5 94.9 99.8 2010 99.5 98.9 99.7 95.2 95.0 96.3 95.5 100.6 2011 99.3 99.0 99.4 97.0 97.3 98.0 97.6 100.3 2012 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 2013 100.9 99.9 100.4 102.5 101.9 102.5 102.1 100.9 2014 101.6 100.3 100.8 105.7 104.5 105.4 104.9 101.3 2015 102.8 100.9 101.7 109.5 107.2 108.4 107.7 101.8 2016 102.9 99.7 101.1 111.3 109.1 111.6 110.1 103.2 2017 104.1 99.5 101.5 114.2 111.1 114.8 112.5 104.6 2018 105.5 100.1 102.5 118.1 113.6 118.0 115.3 105.3 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 hour worked. (3) Output per combined units of labor input and capital services. (4) Gross domestic product originating in the sector, chained superlative index. (5) Index of hours worked 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 total wages. (6) 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. (7) The growth rates of labor input and capital services are combined by weighting with their respective shares of current dollar costs as weights, and aggregating into a chained superlative index. (8) Capital services per hour.