For release 10:00 a.m. (EDT) Tuesday, January 28, 2020 USDL-20-0136
Technical information: (202) 691-5606 • mfp@bls.gov • www.bls.gov/mfp
Media contact: (202) 691-5902 • PressOffice@bls.gov
MULTIFACTOR PRODUCTIVITY TRENDS IN MANUFACTURING - 2018
Manufacturing sector multifactor productivity declined 1.0 percent in 2018,
the U.S. Bureau of Labor Statistics reported today. (See chart 1, table A.)
The multifactor productivity decline in 2018 reflected a 0.6-percent decrease
in sectoral output and a 0.3-percent increase in combined inputs. The
decrease in multifactor productivity followed a revised 0.3-percent
increase in 2017.
Multifactor productivity is calculated by dividing an index of real
sectoral output by an index of combined units of labor input, capital
services, and intermediate inputs. Multifactor productivity annual measures
differ from BLS quarterly labor productivity or output per hour measures
because the former also includes information on capital services, shifts
in the composition of the workforce, and intermediate inputs.
Durable manufacturing sector multifactor productivity decreased
1.1 percent in 2018. The decline reflected a 0.4-percent decrease
in sectoral output and a 0.7-percent increase in combined inputs.
Nondurable manufacturing sector multifactor productivity decreased
0.5 percent in 2018. The decline reflected a 1.0-percent decrease
in sectoral output and a 0.5-percent decrease in combined inputs.
(See table C, table 3.)
Among the 18 manufacturing industries, 13 experienced declines in multifactor
productivity in 2018. The largest declines in multifactor productivity were
in the primary metal products and transportation equipment industries.
Printing and related support activities and machinery industries showed the
largest gains in multifactor productivity. Sectoral output declined in 13
industries; the fourth year in which at least half of manufacturing
industries reported sectoral output declines. (See chart 2, table 3.)
Trends in the manufacturing sector
Manufacturing sectoral output declined in 2018 with an annual decrease of
0.6 percent compared to the 0.6-percent increase in 2017. Combined inputs
increased 0.3 percent, the same increase as 2017. (See table 1.)
Over the longer term, multifactor productivity in the manufacturing sector
grew at an average annual rate of 0.9 percent from 1987 to 2018 with
sectoral output increasing at an average annual rate of 1.5 percent, faster
than the 0.5-percent average annual rate of increase in combined inputs.
During the same period, labor productivity grew at an average annual rate
of 2.5 percent. (See table A.) Of the 2.5-percent average annual increase
in labor productivity, multifactor productivity contributed 0.9 percentage
points which represents about 40 percent of the growth in the 1987-2018
period. Capital intensity contributed 0.7 percentage points, intermediate
inputs intensity contributed 0.6 percentage points, and labor composition
contributed 0.2 percentage points to the increase in labor productivity.
(See table B.)
For the more recent 2007-18 period, multifactor productivity declined at
a 0.4-percent average annual rate compared to an increase of 1.7 percent
during the 2000-07 period. (See table A.) Sectoral output decreased
0.5-percent (average annual rate) and combined inputs decreased 0.1-percent
(average annual rate) over the 2007-18 period.
Revised measures
Annual rates of multifactor productivity and related series were revised
historically for all three sectors. (See table D.) The revisions were a
result of newly released historical series for energy, materials, and
business services from the Bureau of Economic Analysis for the 1987-1997
period, and incorporation of the 2017 Economic Census First Look data.
Over the 1987-2017 period, multifactor productivity in the manufacturing
sector was revised up 0.4 percentage points to 1.0 percent. The upward
revision was due to a 0.4-percentage point downward revision to intermediate
inputs stemming from the newly incorporated historical detail. The revisions
to the longer term reflect mostly revisions to the 1987-2000 period and the
more recent 2012-2017 period. Revisions over the 1987-2017 period resulted
in a 0.1-percentage point upward revision to multifactor productivity in
nondurable manufacturing (0.0 percent), with a 0.5-percentage point upward
revision to multifactor productivity growth (1.8 percent) in durable
manufacturing.
In 2017, multifactor productivity in the manufacturing sector was revised
upward 1.7 percentage points to 0.3 percent. The upward revision was
primarily due to a 1.6-percentage point downward revision to combined inputs.
Multifactor productivity was revised upward 3.5 percentage points in the
durable manufacturing sector and downward 0.2 percentage point in the
nondurable manufacturing sector. Materials were revised downward 8.7
percentage points in manufacturing, 11.2 percentage points in durable
manufacturing, and 3.9 percentage points in nondurable manufacturing.
(See table D.)
Table A. Productivity, sectoral output, and inputs in the manufacturing
sector for selected periods, 1987-2018
Compound annual growth rates
1987- 1987- 1990- 1995- 2000- 2007- 2017-
2018 1990 1995 2000 2007 2018 2018
Productivity
Multifactor 0.9 0.8 1.7 2.2 1.7 -0.4 -1.0
productivity1
Labor productivity2 2.5 1.7 3.2 4.5 4.3 0.2 -2.6
Output per unit of -0.8 -0.9 0.5 0.2 -0.3 -2.2 -2.1
capital services
Sectoral Output 1.5 1.8 3.1 4.4 1.2 -0.5 -0.6
Inputs
Combined Inputs3 0.5 1.0 1.5 2.1 -0.6 -0.1 0.3
Labor input4 -0.4 0.5 0.7 0.5 -2.4 -0.3 1.9
Hours -1.0 0.1 -0.1 -0.1 -3.1 -0.7 2.0
Labor composition5 0.6 0.4 0.7 0.6 0.7 0.4 -0.1
Capital Services 2.3 2.7 2.7 4.3 1.5 1.8 1.5
Energy -2.1 -0.8 -2.6 10.9 -5.5 -5.4 -3.9
Materials 0.5 -0.9 3.1 1.5 0.5 -0.7 -0.9
Purchased business 0.4 3.9 -0.2 2.2 -0.4 -0.7 -2.0
services
1. Output per combined units of labor input, capital services, energy,
materials, and purchased business services.
2. Output per hour worked.
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 total wages.
5. Ratio of labor input to hours.
Table B. Labor productivity and contributions of capital intensity,
intermediate inputs intensity, labor composition, and multifactor productivity
to labor productivity in the manufacturing sector for selected periods
, 1987-2018
Compound annual growth rates
1987- 1987- 1990- 1995- 2000- 2007- 2017-
2018 1990 1995 2000 2007 2018 2018
Labor productivity1 2.5 1.7 3.2 4.5 4.3 0.2 -2.6
Contribution of 0.7 0.5 0.5 0.9 1.0 0.6 -0.1
Capital Intensity2
Information 0.1 0.1 0.1 0.2 0.1 0.0 0.0
processing
equipment
intensity3
Research and 0.3 0.2 0.1 0.3 0.4 0.3 0.1
Development
intensity4
All Other 0.1 0.1 0.1 0.1 0.0 0.0 0.0
intellectual
property products
intensity5
All other capital 0.3 0.2 0.2 0.3 0.5 0.2 -0.2
services intensity
Contribution of 0.6 0.3 0.7 1.1 1.4 -0.1 -1.5
Intermediate Inputs
Intensity6
Energy intensity7 0.0 0.0 -0.1 0.3 -0.1 -0.1 -0.1
Materials 0.4 -0.3 0.8 0.5 1.0 0.0 -0.9
intensity8
Purchased business 0.2 0.6 0.0 0.4 0.4 0.0 -0.5
services
intensity9
Contribution of 0.2 0.1 0.2 0.2 0.2 0.1 0.0
labor composition10
Multifactor 0.9 0.8 1.7 2.2 1.7 -0.4 -1.0
productivity11
1. Output per hour worked.
2. Capital intensity multiplied by capital's share of current dollar
costs.
3. Information processing equipment per hour multiplied by its share of
current dollar costs.
4. Research and development per hour multiplied by its share of current
dollar costs.
5. Software and artistic originals per hour multiplied by its share of
current dollar costs.
6. Intermediate inputs per hour multiplied by intermediate inputs' share of
current dollar costs.
7. Energy per hour multiplied by energy’s share of current dollar costs.
8. Materials per hour multiplied by materials’ share of current dollar costs.
9. Purchased business services per hour multiplied by purchased business'
services' share of current dollar costs.
10. Labor composition multiplied by labor’s share of current dollar costs.
11. Output per combined units of labor input, capital services, energy,
materials, and purchased business services.
Table C. Multifactor productivity and related measures for selected periods 1987-2018
total, durable, and nondurable manufacturing sectors
Average annual growth
1987- 1987- 1990- 1995- 2000- 2007- 2017-
2018 1990 1995 2000 2007 2018 2018
Manufacturing
Multifactor productivity1 0.9 0.8 1.7 2.2 1.7 -0.4 -1.0
Labor productivity 2.5 1.7 3.2 4.5 4.3 0.2 -2.6
Sectoral Output 1.5 1.8 3.1 4.4 1.2 -0.5 -0.6
Combined Inputs2 0.5 1.0 1.5 2.1 -0.6 -0.1 0.3
Capital Services 2.3 2.7 2.7 4.3 1.5 1.8 1.5
Labor input3 -0.4 0.5 0.7 0.5 -2.4 -0.3 1.9
Energy -2.1 -0.8 -2.6 10.9 -5.5 -5.4 -3.9
Materials 0.5 -0.9 3.1 1.5 0.5 -0.7 -0.9
Purchased business services 0.4 3.9 -0.2 2.2 -0.4 -0.7 -2.0
Durable Manufacturing
Multifactor productivity1 1.7 1.5 2.3 3.7 2.5 0.0 -1.1
Labor productivity 2.9 2.0 4.5 5.9 4.5 0.2 -2.7
Sectoral Output 2.0 1.9 4.3 6.7 1.3 -0.6 -0.4
Combined Inputs2 0.3 0.3 1.9 2.8 -1.2 -0.6 0.7
Capital Services 2.2 2.6 2.3 5.4 1.1 1.3 1.4
Labor input3 -0.4 0.3 0.5 1.3 -2.4 -0.4 2.1
Energy -3.3 -2.6 -3.3 10.1 -5.7 -7.6 -4.9
Materials 0.4 -1.3 5.2 2.3 -1.2 -1.2 0.2
Purchased business services 0.1 1.2 0.7 3.6 0.0 -2.1 -2.6
NonDurable Manufacturing
Multifactor productivity1 0.0 -0.2 0.6 0.0 0.6 -0.7 -0.5
Labor productivity 1.7 1.2 1.8 2.9 3.7 0.1 -2.5
Sectoral Output 0.7 1.7 1.8 1.4 0.6 -0.4 -1.0
Combined Inputs2 0.7 1.9 1.2 1.4 -0.1 0.3 -0.5
Capital Services 2.4 2.8 3.1 3.1 1.8 2.2 1.7
Labor input3 -0.5 0.8 0.9 -0.8 -2.4 0.0 1.6
Energy -1.1 1.0 -1.8 11.7 -5.4 -3.9 -2.2
Materials 0.5 0.6 1.6 1.1 1.0 -0.5 -2.2
Purchased business services 0.7 7.3 -1.0 0.7 -1.2 1.0 -1.0
1. Output per combined units of hours, capital services, energy, materials
,and purchased business 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.
Table D. Difference between revised and previous multifactor productivity
and related measures, for selected periods 1987-2017
Average annual growth
1987- 1987- 1990- 1995- 2000- 2007- 2015- 2016-
2017 1990 1995 2000 2007 2017 2016 2017
Manufacturing
Multifactor productivity1 0.4 0.6 0.8 0.4 -0.1 0.3 0.6 1.7
Labor productivity -0.1 0.0 -0.1 -0.1 0.1 0.0 -0.2 0.2
Sectoral Output -0.1 0.0 0.0 -0.1 0.1 -0.1 -0.1 0.2
Combined Inputs2 -0.4 -0.6 -0.7 -0.5 0.0 -0.4 -0.7 -1.6
Capital Services 0.1 0.0 0.1 0.1 0.0 0.0 0.2 0.1
Labor input3 0.0 0.0 0.1 0.1 0.0 0.0 0.1 -0.1
Energy -0.9 -2.8 -4.2 0.9 0.1 -0.4 -5.9 12.0
Materials -0.9 -1.3 -0.2 -2.3 0.3 -1.3 -2.0 -8.7
Purchased business services -0.6 -1.5 -3.3 0.9 0.1 -0.3 0.3 9.3
Durable Manufacturing
Multifactor productivity1 0.5 0.8 1.1 0.7 0.0 0.4 0.1 3.5
Labor productivity 0.0 0.0 0.1 -0.1 0.0 0.1 0.0 0.4
Sectoral Output 0.0 0.0 0.1 0.0 0.0 0.0 0.0 0.4
Combined Inputs2 -0.5 -0.8 -1.1 -0.9 0.0 -0.4 -0.2 -3.3
Capital Services 0.1 0.2 0.1 0.0 0.0 0.1 0.1 0.1
Labor input3 0.0 0.0 0.0 0.1 0.0 0.0 0.1 -0.2
Energy -1.2 -4.0 -4.1 -0.2 0.0 -0.2 1.9 -1.4
Materials -1.2 -2.4 -0.9 -3.0 0.0 -1.1 -1.1 -11.2
Purchased business services -0.7 -0.6 -3.0 0.9 0.0 -0.6 0.4 2.8
NonDurable Manufacturing
Multifactor productivity1 0.1 0.2 0.2 0.0 -0.1 0.2 0.9 -0.2
Labor productivity 0.0 0.0 -0.1 -0.1 0.0 0.0 -0.2 0.1
Sectoral Output 0.0 0.0 -0.1 0.0 0.0 -0.1 -0.1 0.1
Combined Inputs2 -0.2 -0.2 -0.3 0.0 0.0 -0.3 -1.1 0.2
Capital Services 0.0 0.0 0.1 0.0 0.0 0.0 0.3 -0.1
Labor input3 0.1 -0.1 0.1 0.1 0.0 0.0 0.2 -0.1
Energy -0.6 -1.6 -4.0 1.8 0.0 -0.2 -9.7 19.9
Materials -0.2 0.0 0.8 -0.5 0.2 -0.8 -1.7 -3.9
Purchased business services -0.6 -2.7 -3.5 1.1 0.0 0.1 -0.2 15.5
1. Output per combined units of hours, capital services, energy, materials
,and purchased business 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
BLS includes a measure of the effects of changes in the composition of the
work force for manufacturing sectors and industries. Labor input in
manufacturing sectors and NAICS industry groups is obtained by chained
superlative Tornqvist aggregation of the hours at work, classified by
age, education, and gender with weights determined by each group’s share
of total wages. The labor composition index estimates the effect of
shifts in the age, education, and gender composition of the work force
on hours worked.
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. The aggregate capital services measures are obtained
by Tornqvist aggregation of the capital stocks for each asset type within
each of the eighteen manufacturing 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. Data on investment for
fixed assets are obtained from BEA. Data on inventories are estimated
using data from 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.
Labor Input
Labor input in manufacturing sectors and industries is obtained by chained
superlative Tornqvist aggregation of the hours at work, classified by age,
education, and gender with weights determined by each group’s share of
total wages. The labor composition index estimates the effect of shifts in
the age, education, and gender composition of the work force on hours worked.
Hours at work data reflect Productivity and Costs data as of the December 10,
2019 “Productivity and Costs” news release (USDL-19-2143). 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.
The growth rate of labor composition in manufacturing may be underestimated
due to limitations in the source data. The education proxy does not include
training certifications and licensing. The proxy only includes number of years
of schooling.
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).
Intermediate Inputs
In manufacturing, intermediate inputs consist of energy, materials, and
purchased business services, and represent a large share of production costs.
Research has shown that substitution among inputs, including intermediate
inputs, affects productivity change. Therefore, it is important to account
for intermediate inputs in productivity measures at the industry level. In
contrast, the more aggregate productivity measures compare "value-added"
output with two classes of inputs, capital and labor. Because of these
differences in concepts and methodology, productivity change in manufacturing
cannot be directly compared with changes in private business or private
nonfarm business.
Data on intermediate inputs are obtained from BEA based on BEA annual
input-output tables. Tornqvist indexes of each of these three input classes
are derived at the three-digit NAICS level and then aggregated to the
manufacturing sectors. Materials inputs are adjusted to exclude transactions
between establishments within the same sector.
Combined Inputs
The five input indexes (capital services, labor, energy, materials, and
purchased business services) are combined using chained superlative Tornqvist
aggregation, applying weights that represent each component's share of total
costs. Total costs are defined as the current dollar value of manufacturing
sectoral output. 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 www.bls.gov/mfp/mprdload.htm.
Sectoral Output
The output concept used for multifactor productivity in manufacturing is
“sectoral output”. Sectoral output equals gross output (sales, receipts,
and other operating income, plus commodity taxes plus changes in inventories),
excluding transactions between establishments within the same sector.
In contrast, the output concept used for private business and private
nonfarm business is “real value-added”. Real value-added output in private
business equals gross domestic product less general government, government
enterprises, private households (including the rental value of
owner-occupied real estate), and non-profit institutions. Real value-added
output excludes intermediate transactions between businesses.
The output index for manufacturing is constructed using a chained
superlative index (Tornqvist) of three-digit NAICS industry outputs.
Industry output is measured as sectoral output, the total value of goods
and services leaving the industry. The indexes of industry output are
calculated with the Tornqvist index formula. This index formula aggregates
the growth rates of the various industry outputs between two periods,
using their relative shares in industry value of production averaged
over the two periods as weights.
Manufacturing industry output measures for 2017 and earlier years are
constructed primarily using data from the economic censuses and annual
surveys of the U.S. Census Bureau together with data on price changes
primarily from BLS. These measures have been revised due to new and revised
data from the Bureau of Economic Analysis, used in part to construct
intra-industry transactions. Manufacturing industry output for 2018 is
estimated based on historical relationships between BLS sectoral output,
BLS price indexes, and data on industrial production from the Federal
Reserve Board.
Multifactor Productivity
The manufacturing multifactor productivity measures describe the
relationship between output in real terms and the inputs involved in
its production. Multifactor productivity measures are not intended to
capture the specific contributions of labor, capital, or intermediate
inputs. Rather, they are designed to measure the joint influences on
economic growth of technological change, efficiency improvements, returns
to scale, reallocation of resources and other factors of economic growth,
allowing for the effects of capital, labor, and intermediate inputs. The
multifactor productivity indexes are derived by dividing an output index
by an index of the combined inputs of labor, capital services, energy,
non-energy materials, and purchased business services.
Other information
Comprehensive tables containing more detailed data than that which is
published in this press release are available upon request at 202-691-5606
or at www.bls.gov/mfp/mprdload.htm. Industry specific contributions to
output are available at www.bls.gov/mfp/contributions-to-output.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 www.bls.gov/mfp/mprtech.pdf.
General information is available on the BLS Multifactor Productivity website
at www.bls.gov/mfp/mprover.htm. Additional data not contained in the release
can be obtained in print or at www.bls.gov/mfp. A number of comprehensive
tables set up as zip files can be obtained at www.bls.gov/mfp/mprdload.htm.
Methods for measuring manufacturing multifactor productivity are discussed
in the July 1995 issue of the Monthly Labor Review, "Measurement of
productivity growth in U.S. manufacturing”. See www.bls.gov/mfp/mprgul95.pdf.
Table 1. Manufacturing sector: productivity and related measures for the
1987-2018 period
Annual percent change from previous year
Productivity Inputs
Output
per Multi- Pur- Com-
unit factor Sec- Capi- chased bined
Labor of pro- toral tal busi- units
produc- capital ducti- out- Ser- Mate- ness of all
Year tivity1 services vity2 put Labor3 vices Energy rials services Inputs4
1988 1.9 1.7 2.3 4.2 2.5 2.4 0.6 -1.5 6.3 1.9
1989 -0.1 -1.5 0.0 1.2 1.7 2.8 0.2 -2.1 4.3 1.2
1990 3.5 -2.9 0.0 0.0 -2.7 3.0 -3.2 1.1 1.3 0.0
1991 1.9 -4.2 -1.6 -1.8 -2.9 2.6 -5.9 4.2 -3.2 -0.2
1992 5.2 1.6 1.8 4.1 -0.1 2.5 -3.1 5.5 2.7 2.2
1993 2.5 1.3 3.6 3.7 2.1 2.4 -3.4 -1.7 -2.7 0.2
1994 2.9 3.0 1.4 5.6 3.3 2.5 -1.4 9.2 0.5 4.1
1995 3.7 0.8 3.3 4.3 1.2 3.5 0.9 -1.4 1.8 1.0
1996 3.9 -0.3 0.9 3.9 0.6 4.2 -3.1 6.0 0.8 2.9
1997 4.9 2.1 3.9 6.9 2.6 4.7 2.3 -0.3 7.3 2.8
1998 4.5 -0.2 0.9 4.8 0.9 5.0 0.4 6.1 4.8 3.9
1999 5.6 0.1 2.2 4.1 -0.9 4.0 44.7 0.9 1.0 1.9
2000 3.7 -0.8 3.3 2.6 -0.5 3.4 16.7 -4.8 -2.4 -0.7
2001 2.3 -6.6 -1.6 -4.4 -6.0 2.4 16.2 -7.9 1.7 -2.8
2002 8.4 -0.7 2.5 0.8 -6.0 1.5 -33.7 9.6 -5.1 -1.6
2003 6.5 0.4 4.9 1.3 -4.0 0.8 -17.3 -7.5 1.5 -3.5
2004 2.7 1.7 2.7 2.1 0.1 0.4 0.3 5.6 -13.9 -0.6
2005 5.1 2.7 0.7 3.9 -0.7 1.2 18.0 5.1 7.1 3.2
2006 1.0 0.0 2.4 1.6 0.9 1.6 -19.1 -4.1 5.0 -0.8
2007 4.6 0.7 0.6 3.0 -0.8 2.3 10.5 4.3 2.3 2.4
2008 -0.5 -7.5 0.1 -4.6 -2.8 3.2 5.1 -6.8 -16.8 -4.7
2009 1.3 -13.0 -3.6 -11.9 -12.0 1.2 -26.5 -12.7 -2.3 -8.6
2010 6.2 5.5 4.1 6.4 0.9 0.8 -3.2 4.3 3.6 2.2
2011 0.8 1.5 -0.5 2.7 1.9 1.3 9.9 7.4 -3.9 3.2
2012 -0.9 -0.2 -1.6 1.3 2.6 1.5 1.2 3.7 4.4 2.9
2013 1.1 -0.1 -0.1 1.9 0.9 2.1 3.5 3.1 0.2 2.0
2014 -0.4 -1.1 1.1 1.2 1.7 2.2 -8.1 -1.6 -0.6 0.0
2015 -1.8 -2.8 -1.0 -0.9 1.0 2.0 -19.5 2.5 -8.6 0.1
2016 -0.4 -2.1 -2.2 -0.2 0.6 2.0 -8.3 3.0 4.4 2.0
2017 -0.3 -0.9 0.3 0.6 1.0 1.5 -3.4 -7.6 17.9 0.3
2018 -2.6 -2.1 -1.0 -0.6 1.9 1.5 -3.9 -0.9 -2.0 0.3
1. Output per hour worked.
2. Output per combined units of labor input, capital services, energy, material
and purchased business services.
3. Hours at work by age, education, and gender group, weighted by each group’s
share of total wages.
4. The growth rate of each input is weighted by its share of current dollar
cost.
Source: The Bureau of Labor Statistics (BLS) develops productivity measures
using output data published by the Bureau of the Census, U.S.
Department of Commerce, and modified by BLS. Compensation and hours
data are from the BLS. Capital measures are based on data supplied
by the BEA, U.S. Department of Commerce. See also Technical Notes in
this release.
Table 2. Manufacturing sector: indexes of productivity and related measures,
1987-2018
Indexes 2012=100
Productivity Inputs
Output
per Multi- Pur- Combine
unit factor Sec- Capi- chased d_Input
Labor of pro- toral tal busi- s_quant
produc- capital ducti- out- Ser- Mate- ness ity_ind
Year tivity1 services vity2 put Labor3 vices Energy rials services ex
1987 45.1 118.2 72.7 64.8 122.2 54.8 124.3 83.5 98.3 89.1
1988 45.9 120.3 74.4 67.5 125.3 56.1 125.0 82.2 104.5 90.8
1989 45.9 118.5 74.4 68.3 127.4 57.7 125.3 80.5 109.0 91.9
1990 47.5 115.1 74.4 68.3 124.0 59.4 121.2 81.4 110.4 91.9
1991 48.3 110.2 73.2 67.1 120.3 60.9 114.0 84.8 106.9 91.8
1992 50.8 112.0 74.5 69.9 120.2 62.4 110.4 89.5 109.7 93.8
1993 52.1 113.4 77.1 72.5 122.6 63.9 106.6 88.0 106.8 93.9
1994 53.6 116.8 78.2 76.5 126.6 65.5 105.1 96.0 107.3 97.8
1995 55.6 117.8 80.8 79.8 128.1 67.8 106.1 94.7 109.2 98.8
1996 57.8 117.4 81.5 82.9 128.9 70.6 102.8 100.4 110.1 101.7
1997 60.6 119.8 84.7 88.6 132.3 73.9 105.2 100.1 118.1 104.5
1998 63.3 119.6 85.5 92.8 133.4 77.7 105.6 106.2 123.8 108.6
1999 66.9 119.7 87.4 96.7 132.2 80.8 152.8 107.2 125.0 110.6
2000 69.4 118.8 90.3 99.1 131.5 83.5 178.3 102.1 122.0 109.8
2001 71.0 110.9 88.8 94.8 123.6 85.5 207.2 94.0 124.1 106.7
2002 77.0 110.2 91.0 95.6 116.2 86.8 137.4 103.0 117.7 105.0
2003 82.0 110.6 95.5 96.8 111.5 87.5 113.7 95.3 119.5 101.4
2004 84.2 112.6 98.1 98.8 111.6 87.8 114.0 100.6 102.9 100.8
2005 88.5 115.5 98.8 102.7 110.8 88.9 134.6 105.7 110.2 104.0
2006 89.4 115.5 101.1 104.3 111.8 90.3 108.9 101.4 115.8 103.2
2007 93.5 116.3 101.7 107.5 110.9 92.4 120.3 105.7 118.4 105.6
2008 93.1 107.6 101.8 102.5 107.7 95.3 126.4 98.6 98.4 100.7
2009 94.2 93.6 98.1 90.3 94.8 96.5 92.9 86.0 96.2 92.0
2010 100.1 98.8 102.1 96.1 95.6 97.3 89.9 89.7 99.7 94.1
2011 100.9 100.2 101.6 98.7 97.5 98.5 98.8 96.4 95.8 97.1
2012 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
2013 101.1 99.9 99.9 101.9 100.9 102.1 103.5 103.1 100.2 102.0
2014 100.6 98.8 101.0 103.1 102.6 104.3 95.2 101.4 99.5 102.0
2015 98.8 96.0 100.0 102.2 103.7 106.4 76.6 104.0 90.9 102.2
2016 98.4 94.0 97.8 102.0 104.4 108.5 70.2 107.2 94.9 104.3
2017 98.2 93.1 98.1 102.6 105.4 110.2 67.9 99.0 111.8 104.6
2018 95.6 91.1 97.1 101.9 107.5 111.8 65.2 98.1 109.6 104.9
1. Output per hour worked.
2. Output per combined units of labor input, capital services, energy, material
and purchased business services.
3. Hours at work by age, education, and gender group, weighted by each group’s
share of total wages.
4. The growth rate of each input is weighted by its share of current dollar
cost.
Source: The Bureau of Labor Statistics (BLS) develops productivity measures
using output data published by the Bureau of the Census, U.S.
Department of Commerce, and modified by BLS. Compensation and hours
data are from the BLS. Capital measures are based on data supplied
by the BEA, U.S. Department of Commerce. See also Technical Notes in
this release.
Table 3. Multifactor productivity measures for manufacturing industries
in selected periods, 1987-2018
Compound annual growth rates
1987- 1987- 1990- 1995- 2000- 2007- 2017-
2018 1990 1995 2000 2007 2018 2018
Manufacturing 0.9 0.8 1.7 2.2 1.7 -0.4 -1.0
Nondurable 0.0 -0.2 0.6 0.0 0.6 -0.7 -0.5
manufacturing
Food, beverage, and -0.2 -0.5 1.0 -1.5 0.7 -0.7 -0.3
tobacco products
Textile mills and 0.4 1.3 0.9 1.2 0.5 -0.3 -0.5
textile product
mills
Apparel, leather, and -0.2 0.7 -0.2 -0.5 -1.4 0.5 -1.4
allied products
Paper products 0.0 -0.8 0.0 0.2 0.8 -0.3 -0.3
Printing and related 0.7 0.2 -0.3 -0.3 2.6 0.6 1.6
support activities
Petroleum and coal 0.5 -0.8 2.2 2.7 -0.1 -0.4 -2.1
products
Chemical products -0.5 -0.5 -0.4 -0.3 1.0 -1.6 0.5
Plastics and rubber 0.5 0.5 1.0 1.4 0.5 -0.1 -0.6
products
Durable manufacturing 1.7 1.5 2.3 3.7 2.5 0.0 -1.1
Wood products -0.2 0.0 -2.3 -1.1 0.9 0.3 -1.8
Nonmetallic mineral 0.2 0.4 0.8 -0.2 0.1 0.2 -0.2
products
Primary metals 0.4 -0.4 0.1 1.6 0.6 0.1 -4.1
Fabricated metal -0.2 -0.5 0.6 -0.2 0.6 -0.9 -0.1
products
Machinery -0.1 1.5 -1.6 -0.7 1.5 -0.7 1.3
Computer and 6.2 4.7 8.8 12.5 6.5 2.4 1.2
electronic products
Electrical equipment, 0.1 0.1 -0.1 -0.9 1.5 -0.1 -1.1
appliances, and
components
Transportation 1.1 0.6 2.4 2.7 1.8 -0.4 -2.4
equipment
Furniture and related -0.1 -0.9 0.4 0.0 -0.1 -0.2 -0.1
products
Miscellaneous 0.8 3.8 -0.7 1.3 1.5 0.0 0.7
manufacturing
United States Department of Labor
