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Multifactor productivity increases at 0.7 percent annual rate in 2014

April 01, 2016

Private nonfarm business sector multifactor productivity increased at a 0.7-percent annual rate in 2014, after decreasing 0.1 percent in 2013. Multifactor productivity measures the change in output—all the goods and services produced—compared with the change in capital and labor used to produce the goods and services. Labor productivity (output per hour worked) also increased at a 0.7-percent annual rate in 2014.

Annual percent change in productivity in the private nonfarm business sector, 1988–2014
Year Labor productivity Output per unit of capital services Multifactor productivity

1988

1.7% 0.8% 1.2%

1989

0.9 -0.3 0.2

1990

2.1 -1.8 0.6

1991

2.0 -3.4 -0.4

1992

4.3 1.6 3.2

1993

0.2 0.0 -0.3

1994

1.0 1.0 0.6

1995

0.8 -0.8 -0.2

1996

2.7 -0.2 1.6

1997

1.6 -0.2 0.9

1998

3.1 -0.8 1.2

1999

3.4 -0.9 1.9

2000

3.4 -1.9 1.6

2001

3.0 -3.7 0.5

2002

4.3 -1.4 2.1

2003

3.5 0.5 2.2

2004

3.0 2.0 2.5

2005

1.9 0.7 1.5

2006

0.9 -0.2 0.3

2007

1.7 -0.6 0.6

2008

0.8 -3.8 -1.3

2009

3.4 -4.9 -0.3

2010

3.2 2.8 2.9

2011

0.1 1.2 0.2

2012

0.8 1.8 0.8

2013

-0.1 -0.1 -0.1

2014

0.7 1.0 0.7

Output per unit of capital services increased at a 1.0-percent annual rate in 2014, following a decline of 0.1 percent the previous year. Capital services are the services from physical assets—such as buildings, land, and equipment—and intellectual property—which includes software and the knowledge gained from research.

These data are from the Multifactor Productivity program. To learn more, see “Multifactor Productivity Trends — 2014” (HTML) (PDF). Multifactor productivity measures the change in output per unit of combined capital and labor inputs. It measures the joint influences of technological change, efficiency improvements, returns to scale, and other factors affecting economic growth.

SUGGESTED CITATION

Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Multifactor productivity increases at 0.7 percent annual rate in 2014 at https://www.bls.gov/opub/ted/2016/multifactor-productivity-increases-at-0-7-percent-annual-rate-in-2014.htm (visited September 24, 2021).

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