Total factor productivity down in 16 of 21 industries in 2020

Total factor productivity declined in 16 out of 21 major industries in 2020. These declines were largely due to the economic downturn caused by the COVID-19 pandemic. The largest industry decline was in arts, entertainment, and recreation (−17.9 percent), the largest annual decline since data were first collected in 1988. This was followed by declines in educational services (−10.9 percent), accommodation and food services (−8.6 percent), and transportation and warehousing (−8.1 percent).

Among the 21 major industries in 2020, agriculture, forestry, fishing, and hunting had the largest increase in total factor productivity, at 7.4 percent. This was followed by utilities, at 1.8 percent.

In 2020, output for arts, entertainment, and recreation fell 37.7 percent, while combined inputs dropped 24.1 percent. The last time these two measures declined during the same year was in 2009.

These data are from the Multifactor Productivity program. To learn more, see “Total Factor Productivity for Major Industries — 2020.” Total factor productivity is defined as output per unit of combined inputs.