Multifactor Productivity Trends News Release

For release 10:00 am (EDT) March 30, 2017	USDL-17-0375
Technical information:	(202) 691-5606   •  mfpweb@bls.gov  •  www.bls.gov/mfp
Media contact:	        (202) 691-5902   •  PressOffice@bls.gov 

MULTIFACTOR PRODUCTIVITY TRENDS – 2016 

Private nonfarm business sector multifactor productivity decreased at a 
0.2-percent annual rate in 2016, the U.S. Bureau of Labor Statistics 
reported today. (See chart 1, table A.) This 2016 decline reflected a 
1.7-percent increase in output and a 1.9-percent increase in the combined
inputs of capital and labor. Capital services grew by 2.4 percent and 
labor input–which is the combined effect of hours worked and labor 
composition–grew by 1.6 percent. This was the first decline in multifactor
productivity growth since 2009. (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 decreased at a 0.1-percent
annual rate in 2016. A 1.8-percent increase in output and a 1.9-percent 
increase in the combined inputs of capital and labor resulted in the 
multifactor productivity decline in 2016. (See table 2, table A.)

Trends in the private nonfarm business sector

Multifactor productivity in the private nonfarm business sector grew at
an average annual percent rate of 0.9 percent from 1987 to 2016. For the
2007-2016 period, multifactor productivity grew 0.4 percent on average as
combined inputs increased at an average annual rate of 1.0 percent and output
increased at a 1.4 percent average annual rate. The increase in combined 
inputs reflected a 1.7-average annual percent increase in capital services 
along with an increase in labor input at an average annual rate of 0.7 
percent. (See table A.)

In the 2007-2016 period, annual labor productivity decelerated to 1.2 percent
at an annual average rate, as compared to the 2.7 rate in the 2000-2007 
period. Annual labor productivity growth can be viewed as the sum of three 
components: multifactor productivity growth, the contribution of capital 
intensity, and the contribution of shifts in labor composition. 

Labor productivity growth in the 2007-2016 period slowed due to decelerations
in multifactor productivity growth and the contribution of capital intensity
which both reflect the lowest contributions to labor productivity growth 
observed in the 1987-2016 period as viewed over the sub periods of growth.
(See chart 2) The contribution of capital intensity amounted to 0.5 percentage
point of the labor productivity growth, while the contribution of labor 
composition amounted to 0.3 percentage point of the labor productivity growth.
Additionally, the average annual growth in multifactor productivity over the
2007-2016 period of 0.4 percent contributed roughly a third to the overall 
growth in labor productivity of 1.2 percent. Multifactor productivity growth 
decelerated by 1.0 percentage points from the 2000-2007 business cycle and 
the contribution of capital intensity decelerated by a half of a percentage
point. The contributions to labor composition slightly increased to 0.3 
percent in the 2007-2016 period from the 2000-2007 period. 
(See chart 2, table B.) 

The deceleration of capital services since 2000 is largely due to a
major deceleration in the growth of equipment and intellectual property 
products. Equipment continued to decelerate from the peak in the 
1995-2000 period, when it grew at an 8.9 percent average annual rate
to 2.0 percent in the more recent 2007-2015 period. Intellectual 
property products decelerated from a peak of 8.4 average annual percent
change in the 1995-2000 period to 3.0 percent in 2007-2015. 
(See chart 3, table C.)

Within equipment, computers decelerated from a 13.7 average annual 
percent rate of growth in the 2000-2007 period to 5.4 average annual
percent in 2007-2015. (See chart 4, table C.) Within intellectual 
property products, software decelerated from a 7.5 average annual percent
rate of growth in the 2000-2007 period to 3.3 percent in 2007-2015. 
(See chart 5, table C.) 

Revisions
In 2015, multifactor productivity growth rates in the private nonfarm 
business sector were revised up from 0.2 percent to 0.6 percent in 2015,
due to a revision in output. In 2014, multifactor productivity measures 
in the private nonfarm business sector were unchanged. (See table D.)

Table A.   Productivity, output, and inputs in the private nonfarm business
and private business sectors for selected periods,1987-2016

Compound annual growth rates


                              1987- 1987- 1990- 1995- 2000- 2007- 2014- 2015-
                              2016  1990  1995  2000  2007  2016  2015  2016

Private nonfarm business1

Productivity
  Multifactor Productivity2    0.9   0.6   0.5   1.4   1.4   0.4   0.6  -0.2
  Labor productivity3          1.9   1.5   1.6   2.8   2.7   1.2   0.9   0.2
  Output per unit of
    capital services          -0.4  -0.5  -0.4  -0.8  -0.4  -0.2   0.6  -0.6


Output                         2.8   3.2   3.0   5.0   2.8   1.4   3.2   1.7
Combined inputs4               1.9   2.6   2.4   3.6   1.4   1.0   2.5   1.9
   Labor input5                1.3   2.1   2.0   2.5   0.5   0.7   2.6   1.6
     Hours                     0.9   1.7   1.3   2.2   0.1   0.3   2.2   1.5
     Labor Composition6        0.4   0.3   0.7   0.3   0.4   0.4   0.4   0.1
   Capital services            3.3   3.7   3.3   5.9   3.2   1.7   2.5   2.4
Analytic ratio
   Capital intensity7          2.4   2.0   2.0   3.6   3.1   1.4   0.3   0.8


Private business1

Productivity
  Multifactor Productivity2    0.9   0.7   0.5   1.6   1.5   0.4   0.5  -0.1
  Labor productivity3          2.0   1.6   1.5   3.0   2.7   1.2   0.8   0.3
  Output per unit of
    capital services          -0.3  -0.4  -0.2  -0.6  -0.4  -0.2   0.7  -0.5


Output                         2.8   3.2   2.9   5.1   2.8   1.5   3.2   1.8
Combined inputs4               1.9   2.5   2.4   3.4   1.3   1.0   2.6   1.9
   Labor input5                1.3   1.9   2.0   2.3   0.4   0.7   2.7   1.6
     Hours                     0.8   1.6   1.4   2.0   0.1   0.3   2.3   1.5
     Labor Composition6        0.4   0.3   0.7   0.3   0.4   0.4   0.4   0.1
   Capital services            3.2   3.7   3.2   5.7   3.2   1.6   2.4   2.3
Analytic ratio
   Capital intensity7          2.3   2.1   1.8   3.6   3.1   1.3   0.0   0.8


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 the total wage bill.
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,1987-2016

Compound annual growth rates



                    1987- 1987- 1987- 1990- 1995- 2000- 2007- 2007- 2014- 2015-
                    2015  2016* 1990  1995  2000  2007  2015  2016* 2015  2016*

Private nonfarm 
   business1

Labor productivity2  2.0   1.9   1.5   1.6   2.8   2.7   1.3   1.2   0.9   0.2

Contribution of
capital intensity3   0.8   0.8   0.6   0.6   1.2   1.0   0.5   0.5   0.1   0.3

   Contribution of
   information 
   processing 
   equipment(IPE)4   0.3    NA   0.3   0.3   0.6   0.3   0.1    NA   0.0    NA

   Contribution of 
   research and
   development
   (R&D)5            0.1    NA   0.1   0.1   0.1   0.1   0.1    NA   0.0    NA

   Contribution of 
   intellectual 
   property 
   products (IPP)
   excluding R&D6    0.2    NA   0.2   0.4   0.4  -0.1   0.1    NA   0.1    NA

   Contribution of 
   capital 
   services 
   excluding IPP
   and IPE           0.2    NA   0.0  -0.1   0.1   0.7   0.2    NA   0.0    NA

Contribution of 
labor composition7   0.3   0.3   0.2   0.5   0.2   0.2   0.3   0.3   0.2   0.1

Multifactor 
productivity8        0.9   0.9   0.6   0.5   1.4   1.4   0.5   0.4   0.6  -0.2

  Contribution of 
  R&D to 
  multifactor 
  productivity 


Private business1

Labor productivity2  2.0   2.0   1.6   1.5   3.0   2.7   1.3   1.2   0.8   0.3

Contribution of
capital intensity3   0.8   0.8   0.7   0.6   1.2   1.0   0.5   0.5   0.0   0.3

   Contribution of
   information 
   processing 
   equipment(IPE)4   0.3    NA   0.3   0.3   0.6   0.3   0.1    NA   0.0    NA

   Contribution of 
   research and
   development
   (R&D)5            0.1    NA   0.1   0.1   0.1   0.1   0.1    NA   0.0    NA

   Contribution of 
   intellectual 
   property 
   products (IPP)
   excluding R&D6    0.2    NA   0.2   0.4   0.4  -0.1   0.1    NA   0.1    NA

   Contribution of 
   capital 
   services 
   excluding IPP
   and IPE           0.2    NA   0.1  -0.1   0.1   0.7   0.2    NA  -0.1    NA

Contribution of 
labor composition7   0.3   0.3   0.2   0.5   0.2   0.2   0.3   0.3   0.2   0.1

Multifactor 
productivity8        1.0   0.9   0.7   0.5   1.6   1.5   0.5   0.4   0.5  -0.1

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, 1987-2015

Compound annual growth rates

                        1987-   1987-   1990-   1995-   2000-   2007-   2014-
                        2015    1990    1995    2000    2007    2015    2015

Private nonfarm business1

All Assets               3.3     3.7     3.3     5.9     3.2     1.6     2.5

  Equipment              4.4     3.6     4.1     8.9     4.5     2.0     3.3

    Information
    Processing
    Equipment (IPE)      8.9     8.8     8.1    18.4     8.6     3.9     2.6

      Computers &
      related equipment 16.5    18.7    15.8    40.7    13.7     5.4     1.4

      Communication
      equipment          6.9     5.7     5.2    10.9     8.5     4.6     3.6

      Other IPE          2.7     2.6     3.7     3.4     2.6     1.6     2.5

    All other equipment  2.4     1.3     2.1     4.6     2.7     1.2     3.5

  Structures             1.6     2.8     1.9     2.1     1.2     0.9     1.3

  Intellectual property
  products (IPP)         5.6     8.0     6.6     8.4     4.9     3.0     3.8

      Research
         &    
      Development        3.8     5.6     4.2     4.6     2.9     3.1     3.2

      Software          10.0    17.8    13.5    17.0     7.5     3.3     5.1

      Artistic
      Originals          3.3     3.9     3.6     4.1     3.6     2.2     2.1

  Residential rental     1.2     1.9     0.9     1.8     2.2    -0.2     0.2
  capital

  Inventories            2.6     3.4     2.3     4.4     2.3     1.6     4.4

  Land                   0.8     1.7     1.2     1.3     0.6    -0.1     1.3

Private business1

All Assets               3.2     3.7     3.2     5.7     3.2     1.6     2.4

  Equipment              4.3     3.3     3.8     8.8     4.5     2.1     3.3

    Information
    Processing
    Equipment (IPE)      8.9     8.8     8.1    18.4     8.6     4.0     2.7

      Computers &
      related equipment 16.5    18.7    15.8    40.7    13.7     5.4     1.4

      Communication
      equipment          6.9     5.7     5.3    10.9     8.5     4.6     3.6

      Other IPE          2.8     2.6     3.8     3.5     2.7     2.0     2.8

    All other equipment  2.3     1.0     1.9     4.5     2.7     1.3     3.5

  Structures             1.6     2.7     1.9     2.1     1.2     0.9     1.3

  Intellectual property
  products (IPP)         5.6     8.0     6.6     8.4     4.9     3.0     3.8

      Research
         &    
      Development        3.8     5.6     4.2     4.6     2.9     3.1     3.2

      Software          10.0    17.8    13.5    17.0     7.5     3.3     5.1

      Artistic
      Originals          3.3     3.9     3.6     4.1     3.6     2.2     2.1

  Residential rental     1.2     1.9     0.9     1.8     2.2    -0.2     0.2
  capital

  Inventories            2.4     3.0     2.3     4.2     2.2     1.4     4.3

  Land                   0.7     3.3     1.0     0.9     0.6    -0.4     0.2

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 2014-2015 and 2013-2014 periods                                            

                                                                               
                                                           Inputs              
                                                                               
                          Multifactor   Real value-  Combined         Capital 
  Sector                  productivity1 added output inputs2   Labor3 services
                                                                               
              Annual percent change, 2014-2015                                 
Private nonfarm business                                                       
 Previous                   0.2           2.8          2.6       2.6    2.6   
 Revised                    0.6           3.2          2.5       2.6    2.5   
Private business                                                               
 Previous                   0.2           2.9          2.7       2.8    2.6   
 Revised                    0.5           3.2          2.6       2.7    2.4   
                                                                               
              Annual percent change, 2013-2014                                 
Private nonfarm business                                                       
 Previous                   0.7           3.1          2.4       2.5    2.1   
 Revised                    0.7           3.1          2.4       2.5    2.2   
Private business                                                               
 Previous                   0.7           3.1          2.4       2.6    2.0   
 Revised                    0.6           3.0          2.4       2.6    2.1   
                                                                               
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

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, custom, and own-account software. Research and development 
is creative work undertaken to increase the stock of knowledge for the 
purpose of discovering or developing new products or improving existing 
ones. Artistic originals include theatrical movies, long-lived television
programs, books, music, and other forms of entertainment. Structures include
nonresidential structures and residential capital that are rented out by 
profit-making firms or persons.

Financial assets are excluded from capital services measures, as are 
owner-occupied residential structures. The aggregate capital services 
measures are obtained by Tornqvist aggregation of the capital stocks for 
each asset type within each of 60 NAICS industry groupings using estimated 
rental prices for each asset type. Each rental price reflects the nominal 
rate of return to all assets within the industry and rates of economic 
depreciation and revaluation for the specific asset; rental prices are 
adjusted for the effects of taxes. Current-dollar capital costs can be 
defined as each asset’s rental price multiplied by its constant-dollar 
stock, adjusting for capital composition effects. 

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 2001 forward and data from the BLS Hours
at Work survey, conducted for this purpose, for earlier years. 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 2, 2017
“Productivity and Costs” news release (USDL-17-0140).

The estimates of 2016 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 2, 2017 “Productivity and Costs” news release (USDL-17-0140). 
The growth rate of labor composition is defined as the difference between
the growth rate of weighted labor input and the growth rate of the hours
of all persons. 

Additional information concerning data sources and methods of measuring 
labor composition can be found in “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 2015. 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 January 27, 2017. The 
estimates of 2016 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 February 2, 2017
“Productivity and Costs” news release (USDL-17-0140). 
 
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 1987-2016 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     1.2     4.6     3.2     3.8     3.4       0.9
1989    0.9    -0.2     0.2     3.7     3.2     3.9     3.4       1.1

1990    2.0    -1.9     0.5     1.5    -0.2     3.4     1.0       3.9
1991    2.0    -3.3    -0.4    -0.5    -1.5     2.9    -0.1       5.5
1992    4.2     1.5     3.1     4.0     0.1     2.5     0.9       2.7
1993    0.2     0.0    -0.4     3.2     3.7     3.2     3.6       0.2
1994    1.0     1.0     0.5     4.6     4.3     3.6     4.1       0.0

1995    0.8    -0.8    -0.2     3.6     3.5     4.4     3.8       1.6
1996    2.7    -0.2     1.5     4.6     2.1     4.8     3.0       2.9
1997    1.6    -0.3     0.9     5.2     3.7     5.5     4.3       1.9
1998    3.1    -0.8     1.4     5.3     2.8     6.2     3.9       3.9
1999    3.3    -0.9     1.7     5.6     2.6     6.5     3.8       4.2

2000    3.3    -1.9     1.6     4.4     1.1     6.4     2.8       5.3
2001    3.0    -3.7     0.5     0.9    -1.6     4.7     0.3       6.9
2002    4.4    -1.4     2.2     1.8    -2.0     3.2    -0.4       5.9
2003    3.7     0.5     2.3     3.2    -0.1     2.6     0.8       3.2
2004    3.1     2.0     2.6     4.5     1.6     2.5     1.9       1.1

2005    2.1     0.7     1.5     3.8     1.8     3.1     2.3       1.3
2006    1.0    -0.2     0.4     3.3     2.6     3.5     2.9       1.2
2007    1.7    -0.7     0.5     2.4     1.2     3.1     1.9       2.4
2008    0.7    -3.8    -1.3    -1.3    -1.4     2.6     0.0       4.7
2009    3.3    -4.9    -0.4    -4.1    -6.2     0.8    -3.7       8.6

2010    3.3     2.8     2.9     3.2     0.3     0.4     0.3       0.4
2011    0.1     1.2     0.3     2.2     2.4     1.0     1.9      -1.1
2012    0.8     1.8     0.9     3.1     2.8     1.4     2.3      -0.9
2013    0.3     0.2     0.2     2.1     1.8     1.9     1.8       0.1
2014    0.8     0.9     0.7     3.1     2.5     2.2     2.4      -0.1

2015    0.9     0.6     0.6     3.2     2.6     2.5     2.5       0.3
2016    0.2    -0.6    -0.2     1.7     1.6     2.4     1.9       0.8

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



Table 2. Private business sector: productivity and related measures
for the 1987-2016 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     1.0     4.3     3.1     3.9     3.3       1.1
1989    1.1     0.0     0.5     3.8     3.1     3.9     3.4       1.2

1990    2.3    -1.6     0.8     1.6    -0.4     3.3     0.8       3.9
1991    1.9    -3.2    -0.4    -0.5    -1.5     2.8    -0.1       5.3
1992    4.4     1.8     3.4     4.2     0.1     2.4     0.8       2.6
1993    0.2    -0.1    -0.4     2.9     3.5     3.0     3.4       0.3
1994    0.8     1.3     0.5     4.9     4.7     3.5     4.3      -0.4

1995    0.4    -0.9    -0.5     3.2     3.5     4.2     3.7       1.4
1996    3.0     0.1     1.8     4.7     2.0     4.6     2.9       2.9
1997    1.8     0.0     1.1     5.3     3.6     5.3     4.2       1.8
1998    3.1    -0.8     1.4     5.2     2.6     6.0     3.7       3.9
1999    3.5    -0.7     1.9     5.6     2.4     6.3     3.6       4.2

2000    3.4    -1.6     1.7     4.5     1.1     6.2     2.7       5.1
2001    3.0    -3.6     0.5     0.8    -1.7     4.6     0.2       6.9
2002    4.4    -1.2     2.2     1.8    -1.9     3.0    -0.4       5.6
2003    3.9     0.7     2.5     3.2    -0.2     2.5     0.7       3.1
2004    3.2     2.0     2.6     4.5     1.5     2.5     1.8       1.2

2005    2.1     0.7     1.5     3.8     1.8     3.2     2.3       1.4
2006    1.0    -0.3     0.4     3.2     2.4     3.5     2.8       1.3
2007    1.6    -0.7     0.4     2.2     1.1     2.9     1.8       2.3
2008    0.8    -3.4    -1.2    -1.2    -1.3     2.3     0.0       4.4
2009    3.5    -4.5    -0.2    -3.9    -6.1     0.7    -3.7       8.4

2010    3.3     2.8     2.9     3.2     0.3     0.4     0.3       0.5
2011    0.0     1.0     0.2     2.1     2.4     1.1     1.9      -1.0
2012    0.6     1.4     0.6     2.9     2.8     1.5     2.3      -0.8
2013    0.7     0.4     0.5     2.3     1.7     1.9     1.8       0.3
2014    0.6     0.9     0.6     3.0     2.6     2.1     2.4      -0.2

2015    0.8     0.7     0.5     3.2     2.7     2.4     2.6       0.0
2016    0.3    -0.5    -0.1     1.8     1.6     2.3     1.9       0.8

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



Table 3. Private nonfarm business sector: indexes of productivity and related
measures, 1987-2016 period1

Indexes 2009=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    61.2    120.7   82.0    53.4    78.9    44.3    65.2      50.7
1988    62.3    121.6   83.0    55.9    81.4    45.9    67.4      51.2
1989    62.8    121.3   83.1    57.9    84.0    47.7    69.7      51.8

1990    64.1    119.1   83.6    58.8    83.8    49.4    70.4      53.8
1991    65.3    115.1   83.3    58.5    82.6    50.8    70.3      56.8
1992    68.1    116.8   85.9    60.9    82.7    52.1    70.9      58.3
1993    68.2    116.8   85.6    62.8    85.7    53.8    73.4      58.4
1994    68.9    117.9   86.0    65.7    89.4    55.7    76.4      58.4

1995    69.4    117.0   85.8    68.1    92.6    58.2    79.3      59.3
1996    71.3    116.7   87.1    71.2    94.5    61.0    81.7      61.1
1997    72.5    116.4   87.9    74.9    98.1    64.3    85.2      62.2
1998    74.7    115.5   89.1    78.9   100.8    68.3    88.5      64.6
1999    77.1    114.5   90.7    83.3   103.4    72.8    91.9      67.3

2000    79.7    112.3   92.1    87.0   104.6    77.4    94.4      70.9
2001    82.1    108.2   92.6    87.7   102.9    81.1    94.8      75.8
2002    85.7    106.7   94.6    89.3   100.8    83.7    94.4      80.3
2003    88.9    107.2   96.8    92.1   100.8    85.9    95.1      82.9
2004    91.6    109.4   99.3    96.2   102.3    88.0    96.9      83.8

2005    93.5    110.1  100.8    99.9   104.2    90.7    99.1      84.9
2006    94.4    109.9  101.2   103.2   106.8    93.9   102.0      85.9
2007    96.0    109.2  101.7   105.6   108.1    96.7   103.8      87.9
2008    96.8    105.1  100.4   104.3   106.6    99.2   103.9      92.1
2009   100.0    100.0  100.0   100.0   100.0   100.0   100.0     100.0

2010   103.3    102.8  102.9   103.2   100.3   100.4   100.3     100.4
2011   103.4    104.0  103.2   105.5   102.7   101.4   102.2      99.4
2012   104.3    105.9  104.1   108.8   105.6   102.8   104.5      98.5
2013   104.6    106.1  104.3   111.1   107.5   104.7   106.5      98.6
2014   105.4    107.0  105.1   114.5   110.2   107.0   109.0      98.5

2015   106.4    107.7  105.7   118.1   113.1   109.7   111.8      98.8
2016   106.6    107.0  105.5   120.2   114.9   112.3   113.9      99.6

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



Table 4. Private business sector: indexes of productivity and related
measures, 1987-2016 period1

Indexes 2009=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    60.4    117.4   80.8    53.4    79.8    45.4    66.0      51.5
1988    61.4    117.9   81.6    55.6    82.2    47.2    68.2      52.0
1989    62.1    117.9   82.0    57.8    84.7    49.0    70.5      52.7

1990    63.5    116.0   82.6    58.7    84.4    50.6    71.1      54.7
1991    64.7    112.3   82.3    58.4    83.2    52.0    71.0      57.6
1992    67.6    114.4   85.0    60.9    83.3    53.2    71.6      59.1
1993    67.7    114.2   84.7    62.7    86.2    54.9    74.0      59.3
1994    68.3    115.7   85.1    65.7    90.2    56.8    77.2      59.0

1995    68.5    114.6   84.7    67.8    93.4    59.2    80.1      59.8
1996    70.6    114.7   86.2    71.0    95.2    61.9    82.3      61.5
1997    71.9    114.7   87.2    74.8    98.6    65.2    85.8      62.7
1998    74.2    113.9   88.5    78.7   101.2    69.1    89.0      65.1
1999    76.7    113.1   90.1    83.1   103.6    73.5    92.2      67.9

2000    79.4    111.3   91.7    86.8   104.8    78.0    94.7      71.3
2001    81.8    107.2   92.2    87.5   103.0    81.6    94.9      76.3
2002    85.4    105.9   94.2    89.1   101.0    84.1    94.6      80.6
2003    88.7    106.7   96.5    91.9   100.8    86.2    95.3      83.1
2004    91.5    108.8   99.1    96.1   102.4    88.3    97.0      84.1

2005    93.4    109.5  100.6    99.8   104.2    91.1    99.2      85.3
2006    94.4    109.3  101.0   103.1   106.8    94.3   102.0      86.4
2007    95.9    108.5  101.4   105.3   107.9    97.1   103.8      88.4
2008    96.7    104.8  100.2   104.1   106.5    99.3   103.8      92.3
2009   100.0    100.0  100.0   100.0   100.0   100.0   100.0     100.0

2010   103.3    102.8  102.9   103.2   100.3   100.4   100.3     100.5
2011   103.3    103.8  103.1   105.4   102.7   101.5   102.2      99.5
2012   103.9    105.3  103.7   108.5   105.5   103.0   104.6      98.7
2013   104.7    105.7  104.3   111.0   107.3   105.0   106.4      99.0
2014   105.3    106.6  104.9   114.3   110.1   107.2   109.0      98.8

2015   106.2    107.4  105.5   118.0   113.1   109.8   111.8      98.8
2016   106.5    106.9  105.4   120.1   114.9   112.4   113.9      99.6

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 at work of all persons including employees, 
	proprietors, and unpaid family workers, classified by age, education,
	and gender. This chained superlative index is computed by combining 
	changes in the hours of each age, education, and gender group weighted
	by each group’s share of the total wage bill.

(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,
	and aggregating into a chained superlative index.

(8)	Capital services per hour.
 

 

Last Modified Date: March 30, 2017