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Productivity
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Total Factor Productivity Trends Release Technical Notes
Goods producing sector
This sector contains industries within agriculture, forestry, fishery, and hunting (NAICS 11), mining (NAICS 21), utilities (NAICS 22), construction (NAICS 23), and manufacturing (NAICS 31-33) except computer and electronic products (NAICS 334).
Information and communications technology (ICT) sector
Information and communication technology (ICT) contains the following industries: computer and electronic products (NAICS 334), broadcasting and telecommunications (NAICS 515,517), data processing, internet publishing, and other information services (NAICS 518,519) and computer systems design and related services (NAICS 5415). This definition is generally comparable to that used by the Organization for Economic Cooperation and Development (OECD), which defines the ICT sector using the International Standard Industrial Classification (ISIC) (OECD 2011).
FIRE sector
The finance, insurance, and real estate (FIRE) sector contains industries within finance and insurance (NAICS 52) and real estate and rental and leasing (NAICS 53).
Service providing sector
This sector contains industries within trade (NAICS 42,44-45), transportation and warehousing (NAICS 48-49), publishing, except internet (includes software) (NAICS 511) and motion picture and sound recording (NAICS 512), and industries within services (NAICS 54-81) except computer systems design and related services (NAICS 5415).
Capital input
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 industry 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
Hours at work data reflect Productivity and Costs data as of the November 2, 2023 “Productivity and Costs” news release (USDL- 23-2317).
Labor input 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 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.
Energy, materials, and services
Data on energy, materials, and services are obtained from BEA based on BEA annual input[1]output tables. Tornqvist indexes of each of these three input classes are derived at the NAICS industry level and then aggregated to the industries. Materials inputs are adjusted to exclude transactions between establishments within the same industry for goods producing industries. Services are adjusted to exclude transactions between establishments within the same industry for all non-goods producing industries. 7
Sectoral output
The output concept used to measure total factor productivity for industries 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 industry.
2022 manufacturing output measures are estimated based on historical relationships between BLS industrial output, BLS price indexes, and data on industrial production from the Federal Reserve Board. For select service providing industries, output measures are estimated using data from the Quarterly Services Survey from the Census Bureau. For all other nonmanufacturing industries, sectoral output is based on indexes of real quantity and cost measures from the BEA. Data sources by industry for can be found in the handbook of methods.
Other information
Detailed information on methods used in this release can be found in the BLS Handbook of Methods, Productivity Measures: Business Sector and Major Sector section.
Comprehensive tables containing more detailed data than are published in this news release can be found on the productivity tables page.
Industry specific contributions to output are available at the contributions of total factor productivity major industry to output page.
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