Multifactor productivity grew in 54 of 86 manufacturing industries from 1987 to 2015

July 24, 2017

More manufacturing industries saw multifactor productivity growth over the long term than the short term. From 1987 to 2015, multifactor productivity grew in 54 of 86 manufacturing industries. That compares with 21 manufacturing industries in which multifactor productivity grew from 2014 to 2015. The period from 2000 to 2007 saw the greatest number of manufacturing industries with productivity growth (69 industries).

Number of manufacturing industries by their average annual percent change in multifactor productivity from 1987 to 2015
Average annual percent change 1987–2015 1987–1990 1990–1995 1995–2000 2000–2007 2007–2015 2014–2015

5.1% or more

2 2 4 3 3 0 1

4.1% to 5.0%

0 0 1 1 1 0 0

3.1% to 4.0%

0 2 1 1 8 0 2

2.1% to 3.0%

2 3 8 3 8 2 3

1.1% to 2.0%

5 7 17 10 27 9 9

0.1% to 1.0%

45 22 32 25 22 8 6

-0.9% to 0.0%

28 22 13 25 9 34 9

-1.9% to -1.0%

2 17 6 14 3 20 14

-2.9% to -2.0%

2 8 3 2 1 10 14

-3.9% to -3.0%

0 1 1 1 4 2 4

-4.9% to -4.0%

0 2 0 0 0 0 8

-5.0% or less

0 0 0 1 0 1 16

Average annual rates of change in multifactor productivity for nearly all manufacturing industries ranged between −2.0 percent and 2.0 percent from 1987 to 2015. From 2014 to 2015, multifactor productivity declined by 2.0 percent or more in 42 of 86 industries. From 1987 to 2015, only two industries (pharmaceuticals and medicines, and accessories and other apparel) saw an average annual decline of 2.0 percent or more.

From 1987 to 2015, the number of manufacturing industries with growth in multifactor productivity was highest in years following recessions (2003 and 2010). Relatively few manufacturing industries experienced multifactor productivity growth in the recession years of 2001 and 2009.

These data are from the Multifactor Productivity program. To learn more, see "Multifactor Productivity Trends for Detailed Industries — 2015" (HTML) (PDF). Multifactor productivity is calculated by dividing an index of real output by an index of combined units of labor input and capital services. Unlike BLS quarterly labor productivity (output per hour worked) measures, multifactor productivity measures include the influences of capital services and shifts in the composition of the workforce.

SUGGESTED CITATION

Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Multifactor productivity grew in 54 of 86 manufacturing industries from 1987 to 2015 on the Internet at https://www.bls.gov/opub/ted/2017/multifactor-productivity-grew-in-54-of-86-manufacturing-industries-from-1987-to-2015.htm (visited September 25, 2018).

OF INTEREST
spotlight

Recent editions of Spotlight on Statistics