For release 10:00 am (EDT) March 24, 2020 USDL-20-0494
Technical information: (202) 691-5606 • mfpweb@bls.gov • www.bls.gov/mfp
Media contact: (202) 691-5902 • PressOffice@bls.gov
MULTIFACTOR PRODUCTIVITY TRENDS – 2019
Private nonfarm business sector multifactor productivity increased 0.9 percent
in 2019, the U.S. Bureau of Labor Statistics reported today.
(See table A.) This 2019 increase reflects a 2.7-percent increase
in output and a 1.8-percent increase in the combined inputs of capital and
labor. Capital services grew by 2.9 percent and labor input–which is the
combined effect of hours worked and labor composition–grew by 1.1 percent.
Multifactor productivity was revised up to an increase of 0.9 percent in
2018. (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 workers. 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
0.9-percent annual rate in 2019. A 2.7-percent increase in output outpaced
a 1.8-percent increase in the combined inputs of capital and labor in 2019.
(See table A, table 2.)
Multifactor Productivity Trends
The 0.9-percent annual growth of multifactor productivity in the private
nonfarm business sector in 2019 is 0.1 percentage point higher than the
average annual rate of 0.8 percent over the 1987-2019 period. For the period
2007-19, reflecting the most recent business cycle, multifactor productivity
grew at an average annual rate of 0.5 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.)
Multifactor productivity growth in the private nonfarm business sector has
slowed in the most recent business cycle (2007-19) due to a deceleration in
output growth and almost no change in combined inputs.
Revisions to 2018 Multifactor Productivity Growth
In 2018, the multifactor productivity growth rate in the private nonfarm
business sector was revised slightly down to an average annual rate of 0.9
percent, from an average annual rate of 1.0 percent as previously published.
In 2017, the multifactor productivity growth rate in the private nonfarm
business sector was revised up to an average annual rate of 0.6 percent,
from an average annual rate of 0.4 percent as previously published.
(See table D.)
Labor Productivity Trends
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 composition of labor. The contribution
of capital intensity grew 0.7 percentage points in the 2007-19 period and
remains the largest contributor to labor productivity growth in the period.
The contributions of labor composition decelerated slightly between the
2000-07 period and the 2007-19 period, to 0.2 percent.(See table B.)
Capital Services Trends
Capital services in the private nonfarm business sector increased at an
average annual rate of 2.3 percent in the 2007-2018 business cycle, the
latest year of available detailed capital data. This is less than half of
the average annual growth rate of 4.7 percent in the 1990-2000 business
cycle, when capital services peaked.
Table A. Productivity, output, and inputs in the private nonfarm business
and private business sectors for selected periods,1987-2019
Compound annual growth rates
1987- 1987- 1990- 2000- 2007- 2017- 2018-
2019 1990 2000 2007 2019 2018 2019
Private nonfarm business1
Productivity
Multifactor Productivity2 0.8 0.4 1.0 1.4 0.5 0.9 0.9
Labor productivity3 2.0 1.4 2.2 2.7 1.4 1.4 1.9
Output per unit of
capital -0.5 -0.5 -0.6 -0.6 -0.4 0.7 -0.2
Output 2.9 3.2 4.0 2.9 1.9 3.5 2.7
Combined inputs4 2.1 2.8 3.0 1.5 1.5 2.6 1.8
Labor input5 1.4 2.3 2.2 0.5 0.9 2.4 1.1
Hours 0.9 1.8 1.7 0.1 0.5 2.0 0.8
Labor Composition6 0.4 0.5 0.5 0.4 0.4 0.4 0.3
Capital services 3.5 3.8 4.7 3.5 2.3 2.8 2.9
Analytic ratio
Capital intensity7 2.5 2.0 2.9 3.4 1.8 0.8 2.1
Private business1
Productivity
Multifactor Productivity2 0.9 0.5 1.0 1.4 0.5 0.9 0.9
Labor productivity3 2.0 1.6 2.3 2.8 1.4 1.5 1.9
Output per unit of
capital -0.4 -0.5 -0.5 -0.6 -0.3 0.6 -0.3
Output 2.9 3.2 4.0 2.9 2.0 3.4 2.7
Combined inputs4 2.0 2.7 2.9 1.4 1.5 2.5 1.8
Labor input5 1.3 2.2 2.2 0.4 0.9 2.3 1.1
Hours 0.9 1.6 1.7 0.1 0.6 1.9 0.8
Labor Composition6 0.4 0.5 0.5 0.4 0.4 0.4 0.3
Capital services 3.4 3.7 4.5 3.4 2.3 2.8 3.0
Analytic ratio
Capital intensity7 2.4 2.0 2.8 3.4 1.7 0.9 2.2
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,1987-2019
Compound annual growth rates
1987- 1987- 1987- 1990- 2000- 2007- 2007- 2017- 2018-
2018 2019* 1990 2000 2007 2018 2019* 2018 2019*
Private nonfarm
business1
Labor productivity2 2.0 2.0 1.4 2.2 2.7 1.3 1.4 1.4 1.9
Contribution of
capital intensity3 0.8 0.8 0.6 0.9 1.1 0.7 0.7 0.3 0.8
Contribution of
information
processing
equipment(IPE)4 0.3 NA 0.3 0.4 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 NA 0.1 NA
Contribution of
intellectual
property
products (IPP)
excluding R&D6 0.2 NA 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 0.4 0.2 NA -0.1 NA
Contribution of
labor composition7 0.3 0.3 0.4 0.3 0.3 0.3 0.2 0.2 0.2
Multifactor
productivity8 0.8 0.8 0.4 1.0 1.4 0.4 0.5 0.9 0.9
Contribution of
R&D to
multifactor
productivity 0.2 NA 0.2 0.2 0.2 0.1 NA 0.2 NA
Private business1
Labor productivity2 2.0 2.0 1.6 2.3 2.8 1.4 1.4 1.5 1.9
Contribution of
capital intensity3 0.8 0.8 0.7 0.9 1.1 0.6 0.7 0.3 0.8
Contribution of
information
processing
equipment(IPE)4 0.3 NA 0.3 0.4 0.3 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 NA 0.1 NA
Contribution of
intellectual
property
products (IPP)
excluding R&D6 0.2 NA 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 0.4 0.1 NA -0.1 NA
Contribution of
labor composition7 0.3 0.3 0.4 0.3 0.3 0.2 0.2 0.2 0.2
Multifactor
productivity8 0.9 0.9 0.5 1.0 1.4 0.5 0.5 0.9 0.9
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 labor productivity 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, 1987-2018
Average annual growth rates
1987- 1987- 1990- 2000- 2007- 2017-
2018 1990 2000 2007 2018 2018
Private nonfarm business1
All assets 3.5 3.8 4.7 3.5 2.3 2.8
Equipment 4.7 3.8 6.5 4.9 3.2 3.9
Information
Processing
Equipment (IPE) 9.6 8.5 12.9 9.4 7.0 7.6
Computers &
related equipment 15.9 18.4 28.1 14.3 6.2 4.4
Communication
equipment 9.2 6.3 8.0 9.7 10.7 12.2
Other IPE 3.1 2.2 3.3 3.1 3.0 5.1
All other equipment 2.6 1.6 3.6 2.9 1.7 2.6
Structures 1.6 2.9 2.1 1.3 1.0 1.2
Intellectual property
products (IPP) 5.9 7.8 7.4 5.5 4.3 5.0
Research
&
Development 4.4 5.8 5.3 4.2 3.3 3.9
Software 10.2 17.0 13.9 8.2 6.5 7.5
Artistic
Originals 3.1 3.8 3.7 3.6 2.0 2.2
Rental residential
capital 1.2 2.0 1.4 2.2 0.0 0.6
Inventories 2.6 3.4 3.4 2.1 2.1 1.7
Land 0.8 1.3 1.3 0.7 0.3 1.3
Private business1
All assets 3.4 3.7 4.5 3.4 2.2 2.8
Equipment 4.6 3.5 6.3 4.9 3.2 3.9
Information
Processing
Equipment (IPE) 9.6 8.6 12.9 9.5 7.0 7.5
Computers &
related equipment 15.9 18.4 28.1 14.3 6.2 4.4
Communication
equipment 9.2 6.3 8.0 9.7 10.7 12.2
Other IPE 3.2 2.2 3.4 3.3 3.2 5.1
All other equipment 2.5 1.3 3.4 2.9 1.7 2.6
Structures 1.5 2.8 2.0 1.2 1.0 1.2
Intellectual Property
Products (IPP) 5.9 7.8 7.4 5.5 4.3 5.0
Research
&
Development 4.4 5.8 5.3 4.2 3.3 3.9
Software 10.2 17.0 13.9 8.2 6.5 7.5
Artistic
Originals 3.1 3.8 3.7 3.6 2.0 2.2
Rental residential
capital 1.2 2.0 1.4 2.2 0.0 0.6
Inventories 2.5 2.9 3.3 2.0 1.9 1.6
Land 0.7 3.0 1.0 0.7 0.0 1.4
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 the Technical Notes in this release.
Table D. Previous and revised multifactor productivity and related measures for
the 2017-2018 and 2016-2017 periods
Inputs
Multifactor Real value- Combined Capital
Sector productivity1 added output inputs2 Labor3 services
Annual percent change, 2017-2018
Private nonfarm business
Revised 0.9 3.5 2.6 2.4 2.8
Previous 1.0 3.5 2.6 2.4 2.9
Private business
Revised 0.9 3.4 2.5 2.3 2.8
Previous 1.0 3.5 2.5 2.3 2.8
Annual percent change, 2016-2017
Private nonfarm business
Revised 0.6 2.8 2.2 1.9 2.7
Previous 0.4 2.7 2.3 1.9 2.9
Private business
Revised 0.6 2.8 2.2 1.8 2.7
Previous 0.4 2.6 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 March 5, 2020
“Productivity and Costs” news release
(www.bls.gov/news.release/archives/prod2_03052020.htm).
The estimates of 2019 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
March 5, 2020 “Productivity and Costs” news release
(www.bls.gov/news.release/archives/prod2_03052020.htm). 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. These cell estimates
are smoothed using a three year moving average to address missing
observations and reduce volatility.
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.
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 27, 2020. The estimates of 2019
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 5, 2020 “Productivity and Costs” news
release (www.bls.gov/news.release/archives/prod2_03052020.htm).
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 1987-2019 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 0.8 1.0 4.6 3.4 3.8 3.5 0.9
1989 0.9 -0.4 0.2 3.7 3.2 4.1 3.5 1.3
1990 1.7 -1.9 0.1 1.5 0.4 3.4 1.4 3.7
1991 1.8 -3.5 -0.4 -0.5 -1.6 3.1 -0.1 5.5
1992 4.4 1.4 2.9 4.0 0.5 2.6 1.1 3.0
1993 0.2 -0.3 -0.4 3.1 3.6 3.4 3.6 0.4
1994 0.8 0.8 0.5 4.6 4.3 3.8 4.1 0.0
1995 1.2 -0.9 0.2 3.5 2.7 4.5 3.3 2.1
1996 2.1 -0.2 1.0 4.5 2.9 4.8 3.5 2.3
1997 1.9 -0.3 0.9 5.1 3.6 5.4 4.2 2.1
1998 3.1 -0.7 1.5 5.4 2.7 6.1 3.8 3.8
1999 3.8 -0.7 2.1 5.7 2.1 6.5 3.5 4.6
2000 3.3 -1.6 1.5 4.7 1.7 6.5 3.2 5.0
2001 3.0 -3.8 0.5 0.9 -1.7 4.9 0.4 7.1
2002 4.4 -1.6 2.0 1.7 -2.0 3.4 -0.3 6.1
2003 3.9 0.4 2.3 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 1.9 3.4 2.4 1.7
2006 1.2 -0.2 0.5 3.5 2.6 3.7 3.0 1.4
2007 1.8 -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 3.9 -4.7 0.2 -3.6 -6.6 1.1 -3.8 8.9
2010 3.4 2.5 2.7 3.3 0.5 0.8 0.6 0.8
2011 -0.1 0.3 -0.1 2.0 2.4 1.7 2.2 -0.4
2012 0.8 1.2 0.7 3.2 2.7 2.0 2.4 -0.3
2013 0.5 -0.2 0.1 2.3 2.0 2.5 2.2 0.7
2014 0.9 0.4 0.6 3.2 2.5 2.8 2.6 0.5
2015 1.4 0.5 0.9 3.6 2.4 3.0 2.6 0.9
2016 0.3 -1.2 -0.5 1.7 1.7 3.0 2.2 1.5
2017 1.3 0.1 0.6 2.8 1.9 2.7 2.2 1.2
2018 1.4 0.7 0.9 3.5 2.4 2.8 2.6 0.8
2019 1.9 -0.2 0.9 2.7 1.1 2.9 1.8 2.1
See footnotes following table 4.
Source: Bureau of Labor Statistics
Table 2. Private business sector: productivity and related measures
for the 1987-2019 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 1.1
1989 1.1 -0.2 0.4 3.8 3.1 4.0 3.4 1.4
1990 2.0 -1.6 0.4 1.6 0.2 3.2 1.2 3.7
1991 1.7 -3.4 -0.5 -0.5 -1.5 2.9 -0.1 5.3
1992 4.6 1.8 3.1 4.2 0.5 2.4 1.1 2.8
1993 0.2 -0.4 -0.5 2.9 3.4 3.3 3.4 0.5
1994 0.6 1.1 0.5 4.8 4.7 3.7 4.3 -0.5
1995 0.8 -1.1 -0.1 3.1 2.7 4.3 3.2 1.9
1996 2.4 0.1 1.3 4.7 2.6 4.6 3.3 2.4
1997 2.1 0.0 1.2 5.2 3.4 5.2 4.0 2.1
1998 3.1 -0.7 1.6 5.2 2.5 6.0 3.6 3.8
1999 4.0 -0.6 2.3 5.7 1.9 6.3 3.4 4.6
2000 3.4 -1.3 1.6 4.8 1.7 6.3 3.2 4.9
2001 3.0 -3.8 0.5 0.8 -1.8 4.8 0.3 7.1
2002 4.4 -1.4 2.0 1.8 -1.9 3.2 -0.3 5.8
2003 4.0 0.6 2.5 3.3 -0.2 2.7 0.8 3.4
2004 3.0 1.5 2.3 4.3 1.5 2.7 2.0 1.5
2005 2.2 0.5 1.5 4.0 1.9 3.5 2.4 1.8
2006 1.2 -0.3 0.5 3.5 2.5 3.8 3.0 1.5
2007 1.7 -0.8 0.4 2.4 1.2 3.2 1.9 2.6
2008 1.1 -3.6 -1.1 -1.0 -1.4 2.7 0.1 4.9
2009 4.0 -4.3 0.3 -3.5 -6.5 0.9 -3.8 8.7
2010 3.3 2.5 2.6 3.3 0.5 0.7 0.6 0.8
2011 -0.1 0.1 -0.2 1.9 2.4 1.8 2.2 -0.3
2012 0.7 1.0 0.6 3.1 2.7 2.1 2.4 -0.3
2013 0.9 0.0 0.4 2.5 1.8 2.5 2.1 0.9
2014 0.7 0.4 0.5 3.2 2.6 2.7 2.7 0.3
2015 1.3 0.7 0.9 3.6 2.5 2.9 2.7 0.6
2016 0.3 -1.1 -0.4 1.8 1.8 2.8 2.2 1.4
2017 1.3 0.1 0.6 2.8 1.8 2.7 2.2 1.2
2018 1.5 0.6 0.9 3.4 2.3 2.8 2.5 0.9
2019 1.9 -0.3 0.9 2.7 1.1 3.0 1.8 2.2
See footnotes following table 4.
Source: Bureau of Labor Statistics
Table 3. Private nonfarm business sector: indexes of productivity and related
measures, 1987-2019 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 58.1 118.3 79.8 48.5 74.3 41.0 60.8 49.1
1988 59.0 119.2 80.6 50.8 76.8 42.6 63.0 49.5
1989 59.5 118.6 80.7 52.6 79.3 44.4 65.2 50.2
1990 60.6 116.4 80.8 53.4 79.6 45.9 66.1 52.0
1991 61.7 112.3 80.4 53.1 78.3 47.3 66.0 54.9
1992 64.4 113.9 82.8 55.3 78.7 48.5 66.8 56.5
1993 64.5 113.6 82.4 57.0 81.5 50.2 69.2 56.8
1994 65.0 114.5 82.8 59.6 85.0 52.1 72.0 56.8
1995 65.7 113.4 83.0 61.7 87.3 54.4 74.4 58.0
1996 67.1 113.1 83.8 64.5 89.8 57.0 77.0 59.3
1997 68.4 112.8 84.6 67.8 93.0 60.1 80.2 60.6
1998 70.5 112.0 85.9 71.5 95.4 63.8 83.2 62.9
1999 73.2 111.2 87.7 75.5 97.5 67.9 86.2 65.8
2000 75.6 109.4 89.0 79.1 99.1 72.3 88.9 69.1
2001 77.8 105.2 89.4 79.8 97.5 75.9 89.3 74.0
2002 81.3 103.5 91.2 81.2 95.5 78.5 89.0 78.5
2003 84.4 103.9 93.4 83.9 95.5 80.7 89.8 81.2
2004 86.8 105.4 95.4 87.4 97.0 82.9 91.6 82.3
2005 88.7 106.0 96.8 90.9 98.8 85.8 93.8 83.7
2006 89.7 105.7 97.3 94.1 101.4 89.0 96.7 84.9
2007 91.4 104.8 97.8 96.4 102.6 92.0 98.6 87.2
2008 92.4 100.8 96.6 95.4 101.2 94.7 98.7 91.7
2009 96.0 96.1 96.8 92.0 94.5 95.7 95.0 99.9
2010 99.2 98.6 99.4 95.0 95.0 96.4 95.6 100.7
2011 99.2 98.9 99.3 96.9 97.4 98.0 97.6 100.3
2012 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
2013 100.5 99.8 100.1 102.3 102.0 102.5 102.2 100.7
2014 101.3 100.1 100.6 105.5 104.6 105.4 104.9 101.2
2015 102.8 100.6 101.5 109.3 107.1 108.6 107.7 102.1
2016 103.0 99.4 101.0 111.2 108.9 111.8 110.0 103.6
2017 104.3 99.5 101.7 114.3 111.0 114.9 112.5 104.8
2018 105.8 100.2 102.6 118.3 113.7 118.2 115.4 105.6
2019 107.8 100.0 103.5 121.5 114.9 121.6 117.4 107.8
See footnotes following table 4.
Source: Bureau of Labor Statistics
Table 4. Private business sector: indexes of productivity and related
measures, 1987-2019 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 57.5 115.5 78.9 48.6 75.2 42.1 61.7 49.8
1988 58.3 116.0 79.5 50.7 77.6 43.7 63.8 50.3
1989 59.0 115.7 79.8 52.7 80.0 45.5 66.0 51.0
1990 60.2 113.9 80.1 53.5 80.2 47.0 66.8 52.9
1991 61.3 110.0 79.7 53.2 79.0 48.4 66.7 55.7
1992 64.1 112.0 82.2 55.5 79.3 49.5 67.5 57.2
1993 64.2 111.6 81.8 57.1 82.1 51.1 69.7 57.5
1994 64.6 112.8 82.2 59.8 85.9 53.0 72.8 57.3
1995 65.1 111.6 82.1 61.7 88.2 55.3 75.1 58.3
1996 66.7 111.7 83.2 64.6 90.5 57.8 77.6 59.7
1997 68.1 111.7 84.2 67.9 93.6 60.8 80.7 61.0
1998 70.2 110.9 85.5 71.5 95.9 64.5 83.6 63.3
1999 73.0 110.3 87.4 75.6 97.8 68.5 86.5 66.2
2000 75.5 108.8 88.8 79.2 99.4 72.8 89.2 69.4
2001 77.8 104.7 89.3 79.9 97.7 76.3 89.5 74.3
2002 81.2 103.2 91.1 81.3 95.8 78.8 89.2 78.7
2003 84.4 103.8 93.4 84.0 95.6 80.9 90.0 81.4
2004 87.0 105.4 95.5 87.6 97.1 83.1 91.7 82.5
2005 88.9 105.9 97.0 91.1 98.9 86.1 94.0 84.0
2006 90.0 105.5 97.4 94.3 101.4 89.3 96.8 85.3
2007 91.5 104.6 97.8 96.5 102.6 92.2 98.6 87.5
2008 92.6 100.9 96.7 95.5 101.2 94.7 98.7 91.7
2009 96.2 96.5 97.1 92.2 94.6 95.5 95.0 99.7
2010 99.4 98.9 99.6 95.2 95.1 96.3 95.5 100.5
2011 99.3 99.0 99.4 97.0 97.4 98.0 97.6 100.3
2012 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
2013 100.9 100.0 100.4 102.5 101.9 102.5 102.1 100.9
2014 101.6 100.4 100.9 105.7 104.5 105.3 104.8 101.2
2015 102.9 101.1 101.8 109.6 107.1 108.4 107.6 101.8
2016 103.2 100.0 101.4 111.5 109.0 111.5 110.0 103.2
2017 104.5 100.1 102.0 114.6 111.0 114.5 112.3 104.4
2018 106.1 100.7 102.9 118.6 113.6 117.7 115.2 105.3
2019 108.1 100.4 103.9 121.8 114.9 121.3 117.3 107.6
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.
United States Department of Labor
