Multfactor Productivity Series

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Bureau of Labor Statistics

Contact : (202) 523-9294(202) 523-6010

United States ~~Department ~of LaborWashington, D.C. 20212

USDL 83-153HOLD FORRELEASE: 10:00 AM ESTWednesday, Apri l 6 , 1983

BUREAU OF LABOR STATISTICS INTRODUCES ITS FIRST MEASURES

OF KULTIFACTOR PRODUCTIVITY

Product ivi ty, as measured by output per uni t of combined labor and capita linputs--multi factor product ivi ty--rose an average of 1 .5 percent per year f rom1948 to 1981 in the p riva te bus iness sec to r, according to a new measureint roduced today by the Bureau of Labor S ta ti st ic s o f the U.S . Depar tment o fLabor.

This new ser ies shows the changes in the amount o f l abor and cap ital used in

product ion ( table A) . As such i t r ef lect s the jo int e ffec t o f many inf luences,including changes in technology, the level of output, ut il izat ion of capacity,the organization of product ion, managerial skil ls, as well as changes in thecharacteris tics and effor ts of the workforce.

The t radi tional product ivi ty series--output per hour of a l l persons--reflectsthese inf luences and a lso the impac t o f changes in cap ital per uni t o f l aborinput . The new measure, therefore, supplements the exis ting measure b~providing a basis for measuring that impact.

Over the 1948-81 period, when mult i factor product ivi ty increased 1.5 percent peryear, the t radi tional product ivi ty measure of output per hour rose 2.4 percentper year. There fore , the g rowth in cap ital per hour con tr ibuted 0 .9 percentage

point to the g rowth in ou tput per hour ( table B) .

The growth in mult i factor product ivi ty showed two dist inct patterns: 2 .0 percentper year f rom 1948 to 1973, but only 0 .1 percent per year f rom 1973 to 1981.This s lowdown reflected a fa lloff in output growth, coupled with a faster growthof combined inputs o f l abor and cap ital . The accelerated inc rease in inpu ts o flabor and cap ital a ft er 1973 was due to the fas te r inc rease in the hours o f. a llpersons s ince the annua l rate o f g rowth o f cap ital was s lower a fter 1973.



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Table A . Average annua l r at es o f g rowth in p roduct iv ity indexes and rel at ed

measures by ma jo r sec to r, 1948 to 1981 l!

Private PrivateMeasure business 2/ nonfarm business ]j Manufacturing

1948- 1948- 1973- 1948- 1948- 1973- 1948- 1948- 1973-1981 1973 1981 1981 1973 1981 1981 1973 1981

oductivity indexes:Outpu t per hour o f

all persons~ •••••••• 2.4 3.0 0.8 2.0 2.5 0.6 2.6 2.9 1.5Outpu t per uni t o f

capital services •••• -0.1 0.2 -1.0 -0.1 0.2 -1.1 -0.2 0.6 -2.6Multifactor

productivity 1/ ••... 1.5 2.0 0.1 1.3 1.7 0.0 1.8 2.2 0.4

tput •••••••••••••••••• 3.3 3.7 2.2 3.4 3.9 2.1 3.3 4.0 1.2

puts:Hours o f a ll per sons • • 0.9 0.7 1.4 1.4 1.3 1.5 0.7 1.1 -0.2Capital services •••••• 3.5 3.6 3.2 3.6 3.6 3.3 3.6 3.5 4.0Combined labor and

cap it al input s ~ • • • 1.8 1.7 2.0 2.1 2.1 2.1 1.6 1.8 0.9

Average annual rates based on compound rate formula .Excludes government enterprises.

Output per uni t o f combined l abor and cap it al i nput .Hours of a ll persons combined with capital service inputs index weightedby l abor and cap it al sha res.



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Tab le B . Ave ra ge a nn ua l r at es o f g r ow th i n o u tp ut p er h ou r o f a ll p er so ns t th econtr ibut ion of capita l services per hour t and multifactorproductivitYt by major sector t 1948 to 1981 l!

1948- 1948- 1 973- Slow-Measure 1981 1973 1981 down

(1) (2) (3) (4)(Co1.2-Col.3)

Private business 2/

Outpu t per hour o f a ll persons 2. 4 3.0 0.8 -2.2

Minus: Contr ibut ion o f cap ita l se rvicesper hour 1/ 0.9 1.0 0.7 -0.3

Equals : Mult i factor productivity !!./ 1.5 2.0 0.1 -1.9

Private nonfarm business 2/

Outpu t per hour o f a l l persons 2. 0 2.5 0.6 -1.9

Minus: Contr ibut ion of capi ta l servicesper hour 1/ 0.7 0.8 0.6 -0.2

Equa ls: Mul ti facto r productivity !!./ 1.3 1.7 0.0 -1.7

Manufacturing

Outpu t per hour o f a l l pe rsons 2.6 2.9 1. 5 -1.4

Minus: Contr ibut ion o f capi ta l servicesper hour 1/ 0.8 0.7 1.1 0.4

Equals: Multifactor productivity !!./ 1. 8 2.2 0. 4 -1.8

1 / Average annual rates based on compound rate fo rmula.2/ Excludes government enterprises .3/ Change in cap ita l pe r un it o f l abor weigh ted by cap ital ' s share o f to ta l

output •.4 / Ouput per uni t o f combined labor and cap ital input .



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The t radi tional p roduct iv ity measure o f outpu t per hour s lowed- -dropp ing f rom ag ro wt h r at e o f 3 .0 p er ce nt d ur in g t he 1 94 8- 73 p er io d t o 0 .8 p er ce nt f ro m 1 97 3 t o1 98 1. O f t hi s 2 .2 p e rc en ta ge p oi nt f al lo ff , 0 .3 p er ce nt ag e p oi nt w as t he r es ul tof th e slowdo wn in the growth of capital per unit of l abor input. Thebalance--that of mult ifactor product ivity growth--reflected the remaininginfluences.

Outpu t per uni t o f cap ital services, ano ther p roduct iv ity measure int roducedt od ay, f lu ct ua te d b et we en 1 94 8 a nd 1 98 1 b ut d id n ot r eg is te r a s ig ni fi ca nt t re ndo ve r t he p er io d a s a w ho le ( ch ar t A ).

Priva te nonfa rm bus iness. F rom 1948 to 1981, mul ti factor p roduct iv ity g rowth int hi s s ec to r a ve ra ge d 1 .3 p er ce nt a nn ua ll y a s o ut pu t r os e 3 .4 p er ce nt p er y ea r

a nd c om bi ne d l ab or a nd c ap it al i np ut s i nc re as ed 2 .1 p er ce nt p er y ea r ( ta bl e A ).

A s w as . t he c as e f or t he p ri va te b us in es s s ec to r a s a w ho le , a ft er 1 97 3 t he re w asa ma rk ed c ha ng e i n t he t re nd . M ul ti fa ct or p ro du ct iv it y g re w 1 .7 p e rc en ta nn ua ll y f ro m 1 94 8 t o 1 97 3, b ut d id n ot g ro w a t a ll a ft er 1 97 3 ( ta bl e B ).H en ce , a ll o f t he i nc re as e i n o ut pu t d ur in g t he l at er p er io d c am e f ro m i nc re as edinputs o f cap ital and l abor.

The t radi tional p roduct iv ity measure for the p riva te nonfa rm bus iness sec to r,o ut pu t p er h ou r o f a ll p er so ns , r os e 2 .5 p er ce nt p er y ea r f ro m 1 94 8 t o 19 73 ,c om pa re d w it h 0 .6 p er ce nt p er y ea r b et we en 1 97 3 a nd 1 98 1. T he 1 .9 p er ce nt ag ep oi nt s lo wd ow n i n o ut pu t p er h ou r i n t hi s s ec to r p ar tl y r ef le ct s a 0 .2p er ce nt ag e p oi nt d ec li ne i n t he c on tr ib ut io n o f c ap it al s er vi ce s p er u ni t o f

l ab or i np ut . M os t o f t he s lo wd ow n, h ow ev er, w as d ue t o th e 1 .7 p er ce nt ag e p oi ntfal lo ff in mul ti factor p roduct iv ity g rowth, which in turn ref lected the impac tof oth~r inf luences.

A s i n p r iv at e b us in es s, o ut pu t p er u ni t o f c ap it al i np ut i n t he p ri va te n on fa rmb us in es s s ec to r f lu ct ua te d f ro m y ea r t o ye ar, b ut t he re w as n o e vi de nt t re ndb et we en 1 94 8 a nd 1 98 1 ( ch ar t B ).

Manufac tu ring . F rom 1948 to 1981, mul ti factor p roduct iv ity g rew fas te r inm an uf ac tu ri ng t ha n i n t he m or e c om pr eh en si ve b us in es s s ec to rs . T he re w as a 1. 8percent annua l gain, r ef lect ing a 3 .3 percent average r ise in outpu t coupledw it h a 1 . 6 p er ce nt a nn ua l i nc re as e i n c om bi ne d l ab or a nd c ap it al i np ut s.

The fal lo ff in the mul ti factor g rowth rate a lso occur red in manufactur ing a fter1 97 3- -f ro m a r a te o f 2 .2 p er ce nt d ur in g t he 1 94 8- 73 p er io d t o 0 . 4 p er ce nt f ro m1 97 3 t o 1 98 1 ( ta bl e B ).

The s lowdown in the t r ad it iona l outpu t per hour indexes for manufactur ing a fter1973 was 1 .4 pe rcen tage point s, l es s severe than for the more comprehensivebusir lp.Sss '~ctors. Horeover, the growth of capital per hour in manufacturinga cc el er at ed a ft er 1 97 3. F ro m 1 94 8 t o 19 73 t he g ro wt h i n c ap it al s er vi ce s p eru ni t o f l a bo r c on tr ib ut ed 0 .7 p er ce nt p er y ea r t o t he g ro wt h i n o ut pu t p er h ou rin manufactur ing and , a ft er 1973, 1 .1 percent per year.



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The fol lowing note b rief ly descr ibes the major data sources and the p rocedures

used in de riving the new BLS mul ti factor p roduct iv ity indexes . More detai ledinformation on the methods, l imitat ions , and data sources a re ava il ab le onrequest f rom the Bureau o f Labor S ta ti st ic s.

Tab les 1 -6 include a ll the p roduct iv ity and related indexes for each year.

Summary of Methods

The mult ifac to r p roduct iv ity indexes a re der ived by dividing an outpu t index byan input inde x which is a w eighted average of the hours of all pers ons and ofcap ital services. The outpu t indexes a re computed f rom measures o f constan t

dol la r g ross domes tic p roduct , der ived f rom the nat iona l income and producta cc ou nt s d ev el op ed b y t he B ur ea u o f E c on om ic A na ly si s o f t he U .S . D ep ar tm en t o fComme rce •

T he l ab or c om po ne nt o f t he i np ut i nd ex es i s d ev el op ed f ro m m e as ur es o femployment and average hours , d rawn mainly f rom the BLS Cur rent EmploymentS ta ti st ic s p rogram ( the "es tabl ishment" survey) and the Cur rent Populat ionSurvey ( the "household" survey) . The estab li shment survey p rovides informationabout employees on nonagr icul tu ra l payro ll s; the househo ld survey about thesel f-employed , unpaid family workers , and those engaged in agricu lture. The BLShas done considerable resea rch on the e ffec ts on p roduct iv ity g rowth o fworkforce composi tion (changes in the age, sex , and educat iona l s truc tu re o f thew or kf or ce ). T hi s w or k i s n ot i nc lu de d i n t he m ea su re s p ub li sh ed t od ay b ec au semore resea rch i s r equi red.

The ca~ ital services component o f the combined input indexes i s developed f rommeasures o f the s tock o f physica l a sset s- -equ ipment , s truc tu res, l and, andi nv en to ri es -- an d r en ta l p ri ce s f or e ac h t yp e o f s to ck . T he s to ck m ea su re s, i nt ur n, a re d er iv ed f ro m d at a i n t he n at io na l a cc ou nt s a nd o th er s ou rc es o ninves tment, service l ives , and cap ital deter io ra tion funct ions . The ren ta lp ri ce s a re d er iv ed f ro m d at a o n d ep re ci at io n c os ts a nd e st im at es o f r a te s o freturn on the cap ital a sset s.

The l abor and cap ital components o f the inpu t indexes a re combined with weigh tsw hi ch r ep re se nt e ac h c om po ne nt 's s ha re o f t o ta l o ut pu t. T he i nd ex u se s c ha ng in gw ei gh ts w he re t he s ha re i n e ac h y ea r i s a ve ra ge d w it h t he p re ce di ng y ea r' svalue.

Data a re p resented for the p riva te bus iness, p riva te nonfa rm bus iness, andm an uf ac tu ri ng s ec to rs . T he p ri va te b us in es s s ec to r, w hi ch a cc ou nt s f or a bo ut 8 0perce.it ,-,t the g ross nat iona l p roduct inc ludes a ll act iv it ie s in the economywith the except ion o f general government, government enterpr ises , the " rest o fworld" sector, owner-occupied housing, nonprofit insti tut ions, and privatehouseho ld employees . The p r ivate nonfa rm bus iness sec to r a lso excludesagriculture but includes agricultural services .



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Table 1. P ri va te b us in es s s ec to r: P ro du c ti vi ty a nd r e la te d m ea su r es , 1948-81. 11

Productivity Inputs

Year Output P er O ut pu t P e r Multifactor Output H ou r s o f Capital Combined Unit s C ap it al p erH ou r o f A l l U ni t o f Productivity All ' Persons o f L ab or a nd H ou r o f

Persons Capital JJ ]../ ,Y 2 .1 C ap it al I np ut s. ~1 A ll P er so ns

Indexes 1'177=100

1948 45.3 '1'1.2 60.1 36.8 81.3 37.1 61.3 45.6194'1 46.0 93.6 5'1.4 36.1 78.6 38.6 60.8 49.1

1950 49.7 '18.7 63.6 39.5 7'1.5 40.0 62.1 50.41'151 51.2 100.2 65.1 41.8 IH.8 41.8 64.3 51.11'152 52.9 '1'1.4 66.3 43.2 81.8 43.5 65.2 53.21'153 54.6 100.7 68.0 45.1 82.6 44.'1 66.4 54.31'154 55.6 '16.3 67.8 44.4 79.8 46.1 65.5 57.7

.1'155 57.8 100.'1 70.7 47.'1 82.'1 47.5 67.8 57.31'156 58.5 100.0 71.0 4'1.2 84.2 4'1.2 6'1.3 58.51'157 60.0 '17.'1 71.6 4'1.7 82.'1 50.7 69.4 61.21'158 61.8 '14.3 72.0 48.'1 7'1.0 51.'1 67.8 65.6195'1 63.9 '1'1.3 74.'1 52.5 82.1 52.9 70.0 64.4

1960 64.8 98.4 75.4 53.3 82.2 54.1 70.7 65.81'161 67.0 '18.0 76.'1 54.2 80.'1 55.3 70.5 68.41962 6'1.6 101.2 79.7 57.2 82.2 56.6 71.8 68.81'163 72.3 102.6 82.0 59.7 82.7 58.2 72.'1 70.41'164 75.4 105.2 84.9 63.3 84.0 60.2 74.6 71.6

1'165 78.1 107.8 87.6 67.6 86.7 62.8 77.2 72.41'166 80.4 108.0 8'1.3 71.3 88.7 66.1 79.'1 74.51'167 82.1 104.9 8'1.6 72.9 88.6 6'1.6 81.4 78.51968 85.1 105.5 '11.7 76.7 '10.1 72.7 83.7 80.7196'1 85.3 103.7 'll.3 78.'1 '12.5 76.1 86.5 82.3

1970 86.1 98.6 '10.2 78.3 '10.9 7'1.4 86.8 87.41971 8'1.2 '18.1 '12.2 80.6 '10.4 82.2 87.5 '11.01972 92.4 101.0 95.2 86.0 93.2 85.2 '10.4 '11.51973 '14.7 103.0 '17.5 '11.8 '16.9 8'1.1 '14.1 92.01974 92.4 96.5 91.8 8'1.9 97.2 '13.1 95.8 95.8

1975 94.5 'll.'I '13.6 88.0 93.1 95.7 '14.0 102.81'176 '17.6 96.1 '17.1 '13.7 95.'1 97.5 '16.5 101.61977 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.01'178 100.6 101.8 101.0 105.5 104.'1 103.6 104.4 '18.81979 '19.6 100.3 '19.'1 107.8 108.3 107.5 108.0 '1'1.3

1980 98.8 '15.3 97.6 106.2 107.4 111.3 108.8 103.61981 100.6 '15.0 98.6 108.8 108.2 114.5 110.3 105.8

Ave r ag e a nn ua l p e rc en t change II

1948-73 3.0 0.2 2.0 3.7 0.,7 3.6 1.7 2.81973-81 0.8 -1.0 0.1 2.2 1.4 3.2 2.0 1.8

1'148-81 2.4 -0.1 1.5 3.3 0.9 3.5 1.8 2.6

S ee f o ot n ot es f ol lo w in g t ab le 6.



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Tab le 2 . P ri va te n on fa rm h us in es s s ec to r: P ro du ct iv it y a nd r e l at ed m ea su re s, l Q4 8- 81 . II

Productivity Inputs

Year Output Per Output Per Multifactor Output Hours of Capital Comhined Units Capi tal pe rH ou r o f A ll llnit of Productivity All Persons of Lahor and Hour of

Persons Capital Jj 1/ !:./ 2/ Capi tal Inpu ts£1

All Persons

Indexes lQ77=100

lQ48 51.2 Q8.1 64.6 35.6 6Q.6 36.3 55.1 52.2lQ4Q 52.3 n.R 64.2 34.Q 66.8 37.7 54.4 56.3

lQ50 55.6 Q8.4 68.2 38.3 6Q.0 39.0 56.2 56.5lQ51 %.6 100.6 6Q.5 40.Q 72.2 40.6 58.8 56.31952 58.0 QQ.7 70.4 42.2 72.8 42.4 60.0 58.2lQ53 59.0 100.Q 71.5 44.1 74.7 43.7 61.7 58.5lQ54 5Q.9 96.2 71.0 43.2 72.1 44.Q 60.8 62.3

1955 62.3 100.Q 74.1 46.8 75.1 46.4 63.2 61.71956 62.5 100.1 74.0 48.2 77.0 48.1 65.1 62.51957 63.6 Q8.0 74.3 48.7 76.6 49.7 65.6 64.QlQ58 65.1 Q4.0 74.3 47.8 73.4 50.R 64.3 69.3195Q 67.4 9Q.5 77.5 51.6 76.6 51.9 66.6 67.7

1960 67.Q 9R.4 77.6 52.3 77.0 53.2 67.5 6Q.llQ61 70.0 Q7.Q 78.Q 53.3 76.1 54.4 67.5 71.51% 2 72.5 101.3 81.7 56.4 77.8 55.7 69.0 71.6lQ63 74.9 102.6 83.8 58.9 78.6 57.4 70.3 73.01964 77 .8 105.5 86.7 62.7 80.5 59.4 72.3 73.8

1965 80.3 108.1 8Q.2 67.0 83.5 62.0 75.1 74.2lQ66 82.2 108.7 QO.7 71.0 86.4 65.3 78.3 75.7

1967 83.8 105.3 90.7 72.5 86.5 68.Q 79.9 7Q.6

1968 86.7 106.0 92.Q 76.5 88.2 72. I 82.3 81.7lQ69 86.4 104.1 Q2.1 78.7 Ql.l 75.6 85.4 83.0

1970 86.8 98.6 QO.7 77.Q 8Q.7 78.Q 85.Q 88.0lQ71 8Q.7 Q8.0 Q2.4 80.1 8Q.3 81.8 86.7 Ql.5

1972 93.0 101.1 Q5.7 85.8 Q2.2 84.8 8Q.7 n.o1973 Q5.3 103.2 <)7.Q Ql.7 %. 2 88.8 Q3.6 ~2.;31974 <JT."tT 96.5 94.1 8Q.7 96.6 93.0 Q5.4 96.3

1975 94.7 Ql.7 93.6 87.6 n.5 95.6 93.6 103.3

lQ76 Q7.8 %. 1 Q7.2 Q3.6 95.7 Q7.4 96.3 101.8

1977 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

1978 100.6 101.9 101.1 105.7 105.1 103.7 104.6 98.7

1979 9Q.3 100.0 99.6 108.0 108.7 107.Q 108.4 9Q.2

1980 98.4 Q5.1 97.3 106.2 108.0 Ill.7 109.2 103.4

1981 9Q.8 94.4 97.9 108.5 108.8 115.0 110.Q 105.7

Ave ra ge a nn ua l p er ce nt c ha ng e 2!

1948-73 2. 5 0. 2 1.7 3.9 1.3 3.6 2.1 2. 3

lQ73-81 0.6 -1.1 0.0 2.1 1.5 3.3 2.1 1.7

lQ48-81 2.0 -0.1 1.3 3. 4 1. 4 3.6 2. I 2. 2

See footnotes following t ab le 6 .



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Table 3. M a nu f ac t ur i ng s e ct o r: P ro d uc t iv it y a n d r el at e d m e as u re s , 194R-R1. II

Productivity Inputs

Year Output Per Output Per Multifactor Output Hours of C api tal C om bin ed U ni ts C a pi t al p e r

Hour of All Unit of Productivity All Persons o f L ah or a nd H ou r o fPersons Capital lJ 1/ ! : . . I 51 Capita l Input ' s 2 . . 1 All Persons

Indexes 1977=100

1948 45.1 94.4 56.2 35.R 79.4 37.9 63.7 47.R1949 46.9 R6.0 56.0 33.9 72.4 39.5 60.6 54.5

1950 49.4 94.9 59.9 3R.6 7R.2 40.7 64.5 52.11951 51.1 99.6 62.3 43.0 R4.2 43.2 69.1 51.31952 52.0 95.7 62.2 44.5 85.4 46.4 71.4 54.41953 52.9 9R.6 63.5 47.5 R9.B 4 R.2 7 4 .R 53.71954 53.7 R9.2 62.3 44.1 R2.1 49.5 70.R 60.2

1955 56.4 95.R 65.9 4R.9 R6.6 51.0 74.2 5R.R1956 56.0 92.5 64.R 49.2 R7.9 53.2 75.9 60.51957 57.1 R9.6 65.1 49.5 R6.5 55.2 76.0 63.R

195R Sfl.9 RO.5 62.R 45.2 79.4 56.2 71.9 70.71959 59.6 89.2 67.0 50.5 R4.7 56.6 75.4 66.9

1960 60.0 RR.O 67.0 50.7 84.4 57.5 75.6 6R.21961 61.6 R 6.9 6R.0 50.7 R2.3 5 R.3 74.6 70.91962 64.3 92.9 71.5 55.1 R5.6 59.2 77.0 69.21963 6R. 9 9 R.3 76.3 59.6 R6.5 60.7 7R.2 70.11964 72.3 102.4 79.R 63.9 8R.4 62.4 RO.O 70.6

1965 74.5 107.3 R2.R 69.R 93.6 65.1 R4.3 69.51966 75.3 108.7 R3.7 75.1 99.R 69.2 R9.R 69.31967 75.3 101.1 Rl .8 75.0 99.6 74.2 91.7 74.519 6R 7R. 0 101.1 R3.7 79.1 101.4 7R.2 94.4 77 .11969 79.3 100.5 R4.6 Rl .7 103.1 Rl .3 96.6 7R.9

1970 79.1 91.R R2.3 77.0 97.3 R3.9 93.6 R6.2

1971 R3.9 92.4 R6.0 7R.7 93.7 R5.2 91.5 90.9

1972 RR.299.9

91.1R6.2 97.R R 6.4 94.7 RR.3

1973 93.0 10R.2 'lh R '15.9 103.2 RR.6 99.1 85.9

1974 90.8 99.6 93.0 91.9 101.2 92.2 9R.8 91:1

1975 93.4 89.4 92.2 R5.4 91.4 95.5 92.6 104.4

1976 97.5 96.1 97.1 93.6 95.9 97.4 96.4 101.5

1977 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

1978 100.9 101.5 101.0 105.3 104.4 103.11 104.2 99.4

1979 101.6 99.5 101.0 1011.2 106.5 10R.R 107.2 102.1---1980 101.7 90.0 9R.6 103.6 101.8 115.1 105.1 113.1

19R1 104.5 87.5 99.9 105.9 101.3 121.1 106.0 11<).5

Average annual percent change 2/

48-73 2.9 0. 6 2. 2 4. 0 1. 1 3. 5 1. R 2. 4

73-81 1.5 -2.6 0.4 1.2 -0.2 4. 0 0. 9 4. 2

)4R-81 2. 6 -0.2 1. R 3. 3 0. 7 3.6 1.6 2. R

e footnotes following tahle 6.



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Tab le 4 . P ri va te b us in es s s ec to r: P ro du ct iv it y a nd r e la te d m ea su re s, 1 94 A- AI . II

Productivity Inputs

Year Output P er O ut pu t P er Multifactor Output Hours of Capital Combined Uni ts Capi tal Hour of All Unit of Productivity All Persons of Lahor and H ou r

Persons Capital 1/ 1/ ! : . . I 2/ Capi tal Inpu ts ~I All Pe

Percent chan~e

1949 1.6 -5.6 -1.1 -1.9 -3.4 4.0 -O.A 7.

1950 A.2 5.5 7. 2 9.4 1.2 3.7 2.1 2 •1951 2.9 1.5 2.4 5. 9 2.9 4.4 3.5 1.41952 3.4 -O.A I.A 3.3 0.0 4.2 1.5 4.1953 3.3 1.3 2.6 4./~ 1.1 3.1 1. A 2.1954 1.7 -4.3 -0.4 -1. A -3.4 2.7 -1.4 6.3

1955 4.1 4.A 4. 4 A.I 3.A 3.1 3./\ -0.71956 1.1 -0.9 0.3 2.6 1.5 3.6 2.3 2.01957 2.6 -2.1 0.9 1.0 -1. '; 3. 1 0.1 4.I95A 3.1 -3.7 0.7 -1.6 -4.6 2.2 -2.3 7.

1959 3.3 5.3 4.0 7.3 3. 9 2. 0 3. 2 -1.9

1960 1.5 -O.A 0.6 1.6 0.1 2.4 0.9 2.1961 3.4 -0.5 2.0 1. 7 -1.6 2.2 -0.3 3.

1962 3.9 3.2 3.6 5.6 1.6 2.3 1.9 O

1963 3.A 1.4 2.9 4.4 0.6 2.9 1.4 2.1964 4.3 2.5 3.6 6.0 1.6 3.4 2.3 1.

1965 3.6 2.4 3.1 /\.A 3.1 4.3 3.6 1.1966 3.1 0.2 1.9 5.5 2.4 5.3 3.5 2.

1967 2. 3 -2.9 0.3 2.2 -0.1 5.3 1.9 5.4I96A 3.5 0.6 2.4 5.2 1.7 4./\ 2.7 2.

1969 0.2 -1.7 -0.5 2.9 2.7 4.7 3.4 1.

1970 0.9 -5.0 -1.2 -O.R -1.7 4.3 0.3 fl

I97I 3.6 -0.5 2.2 3.0 -0.6 3.5 O.A 4

1972 3.5 3.0 3.3 6.7 3.1 3.6 3.3 0.

1973 2.6 2.0 2.4 6.6 4.0 4.6 4.2 0

1974 -2.4 -6.3 -3.A -2.1 0.4 4.5 1. A 4.1975 2.2 -4.7 -0.2 -2.1 -4.2 2.7 -I.A 7

1976 3.3 4.5 3 . R /\ .5 3.0 1. 9 2.6 -1.

1977 2.4 4.0 3.0 6.7 4.2 2.6 3.6 -1.

I97A 0.6 I.R 1.0 5.5 4.9 3.6 4.4 -1.2

1979 -1.0 -1.4 -1.1 2. 2 3.2 3.7 3.4 o

I9AO -O.A -5.0 -2.2 -1.6 -O.A 3.6 0.7 4

I9Al I .R -0.3 1.1 2.5 0.7 2.9 1.5 2

See footnotes following table 6.



-10-

Table 5. Private nonfarm business sector: Productivi ty and related measures, 194A-Al. l/

Productivity Inputs

Year Output Per Output Per Multifactor Output Hours of Capital Combined 1Jnits Capital per

Hour o f Al l Unit of Productivity All Persons of Lahor and Hour ofPersons Capital lJ 1/ !:./ 2/ Capital Inputs !!../ Al l Persons

Percent change

1949 2.2 -5.4 -0.6 -1.9 -4.0 1.7 -1.1 '1.0

1950 6.3 6.0 6.2 9. 7 3. 2 1. ~ 3. 1 0. 11951 1.9 2.2 2.0 6.6 4.6 4.2 4.5 -0.41952 2.5 -0.9 1.2 1. 4 0. 9 4. 1 2. 1 3. 41953 1.7 1.2 1.5 4.4 2.6 3.2 2.A n.61954 1.5 -4.7 -0.6 -2.n -3.5 2.A -1.4 6.5

1955 4. n 5.n 4.4 A.4 4.2 3.1 1.'1 -0.91956 n. 3 -n.9 -0.1 2.A 2.5 3. 7 3.0 1.21957 I.A -2.0 0.4 1.2 -0.6 3. 3 O.A 3.9195A 2.4 -4.1 n.O -1.9 -4.3 2.3 -2.0 6.A1959 3.5 5.9 4.1 A.O 4.4 2.n 3.5 -2.3

1960 O.A -1.1 n.l 1.4 0. 6 2.6 1.1 2.n1961 3.0 -0.5 1.7 I .A -1.2 2.3 n.l 3.51962 3.6 3.4 3.5 5.9 2.2 2.4 2.3 0.21963 3.3 1.4 2.5 4.4 1.1 1.0 1.A 1.91964 3.9 2.A 3.5 6.4 2.4 3.5 2.A 1. 1

1965 3.1 2.5 2.9 7.n 3.7 4.4 4.0 0. 71966 2.4 0.5 1.7 5. 9 1.4 5.4 4.2 1. 91967 1.9 -3.1 o.n 2. 1 0.2 5.4 2.1 5. 2196A 3. 4 n.7 2.4 5.4 2. 0 4.7 3.0 2.71969 -0.3 -1.'1 -n.A 2.9 3.2 4.'1 3.'1 1. 5

1970 0. 4 -5.1 -1.6 -1.1 -1.5 4. 5 0. 5 6.n1971 3.4 -0.6 2. 0 2.9 -0.4 3.6 n.9 4.01972 3.7 3.2 3.5 7.n 3.2 3.7 3.4 0.51973 2.5 2.1 2. 3 6. 9 4.3 4.7 4.5 0.4

1974 -2.5 -6.5 -3.9 -2.2 0.4 4.7 1.A 4.3

1975 2.n -5.n -0.5 -2.4 -4.3 2.'1 -1.9 7. 41976 3.3 4.9 3. R 6. 9 3. 5 1. 9 2.9 -1.51977 2.2 4.0 2.9 6.A 4.5 2.7 3.R -1.'1197R 0. 6 1.9 1.1 5.7 5.1 3.7 4.6 -1.31979 -1.3 -1.A -1.5 2. 1 3. 5 4.n 3. 7 0. 5

19RO -0.9 -5.n -2.3 -1.6 -0.7 3. 5 0.7 4. 219R1 1.4 -O.R 0.7 2.2 n.R 3.0 1.5 2. 2

!':eefootnotes following table Ii.



-11-

Table 6. Manufac tur ing secto r: P roduct ivi ty and r el a ted measures, 1C14R-R1. 1/

Productivity Inputs

Year Output Per Output Per Multifactor Output Hours of Capital Combinerl Units Capi t al perHour of All Unit of Productivity All Persons o f L a bo r a nd H ou r o f

Persons Capital 1 ./ 1/ !:./ 2 / Capital Inputs f l./ All Persons

Percent chanRe

1C14C1 4.0 -R.CI -0.4 -5.2 -R.CI 4.0 -4.CI 14.1

1C150 5.4 10.4 7.1 11.CI R.O 1.2 6.1 -4.51C151 3.4 4.CI 3.CI 11.4 7.7 6.2 7.2 -1.41C152 1.R -3.CI -0.1 1.1 1.4 7.5 3.4 5.CI1C151 1.7 3.0 2.1 6. CI 5.1 3.7 4.7 -1.11C154 1.6 -1).6 -2.0 -7.2 -R .6 2.7 -5.3 12.1

~Cl55 5.0 7.5 5.R 10.R 5.5 1.1 4.7 -2.31C156 -0.7 -1.4 -1.6 0.7 1.5 4.3 2.4 2.R1C157 2.1 -3.2 0.4 0.5 -1.5 3.R 0.1 5.41C15R -0.4 -10.2 -3.4 -R.6 -R.2 1.7 -5.4 10.0

1C15C1 4.R 10.R 6.6 11.7 6.6 O.R 4. R -5.4

1%0 0.7 -1.3 0.1 0.3 -0.1 1.6 0.3 1.CI1961 2.7 -1.2 1.5 0.1 -2 •.5 1.4 -1.4 4.01C162 4.3 6.CI 5.1 R. 6 4.1 1.6 1.3 -2.41963 7.2 5.7 6.7 R.1 1.0 2.4 1.5 1.41C164 4.R 4.2 4.6 7.1 2.2 2.CI 2.4 0.6

1C165 3.1 4. R 3.7 0.2 5.0 4.2 5.3 -1.61966 1.1 1.3 1.2 7.7 6.5 6.1 6.5 -0.21967 0.0 -7.0 -2.3 -0.2 -0.2 7.2 2. 1 7.51%R 1.5 0.0 2.4 5.5 1.CI 5.4 1.0 3.51Cl6C1 1.7 -0.6 1.0 3.4 1.6 3.CI 2.3 2.3

1C170 -0.2 -R.7 -2.7 -5.R -5.6 1.2 -3.2 0.31971 6.1 0.6 4.5 2.2 -3.7 1.6 -2.2 5.51C172 5.0 R. 1 6.0 CI.6 4.3 1.4 3.4 -2.R1C173 5.4 R.4 6.3 11.2 5.5 2.6 4.6 -2.R

1974 -2.4 -7.1) -3.CI -4.2 -l.CI 4.1 -0.3 6.1

1C175 2.CI -10.1 -0.0 -7.1 -Cl.7 1.5 -6.2 14.61C176 4.4 7.4 5.1 CI.6 4.CI 2.0 4.1 -2.R1C177 2.5 4.1 1.0 6.CI 4.2 2.7 1.R -1.5197R O.CI 1.5 1.0 5.3 4.4 3. R 4.2 -0.61C17C1 0.7 -2.0 -0.1 2.7 2.0 4.R 2.R 2.7

1C1RO 0.2 -Cl.5 -2.4 -4.3 -4.5 5.R -1. CI In.719R1 2. R -2 .R 1.4 2.3 -0.5 5.2 O.CI 5.7

See footnotes following table 6.



-12-

Foo tno tes , Tables 1 -6

SOURCE: Output da ta f rom Bureau o f Economic Ana lys i s (BEA), U .S. Depar tment o fCommerce , and the Federa l Rese rve Board. Compensat ion and hours dataf rom the Bureau o f Labor S tat is t ic s , U .S. Depar tment o f Labor, andB EA . C ap it al m ea su re s a re b as ed o n d a ta s up pl ie d b y B EA a nd U .S .Department of Agricul ture .

(1 ) The p r ivate bus iness sector inc ludes a ll o f Gross Na t iona l P roduc texcept the rest -of -world sec tor, the ren tal va lue o fowner-occup ied real e s ta te , the ou tpu t a r is ing in nonprof ito rganiza t ions, the ren ta l va lue o f r ea l e st a te occupied bynonprof it o rganizat ions, the ou tput o f pa id employees o f p rivatehouseholds , government , and the s ta t ist ical d iscrepancy inpreparing the na t ional income accoun ts. The p r ivate nonfarmbusiness sector a lso excludes farms, but includes agr icul turalservices.

( 2) O ut pu t p er u ni t o f c om bi ne d l ab or a nd c ap it al i np ut s.

(3 ) Gross Domes t ic P roduc t o r ig ina ting in the sec to r, in cons tantdollars.

( 4) P ai d h ou rs o f a l l e mp lo ye es , p lu s t he h ou rs o f p ro pr ie to rs a ndunpa id fami ly workers engaged in the sector.

( 5) A m e as ur e o f t he f lo w o f c ap it al s er vi ce s u se d i n t h e s ~ ct or.

( 6) H ou rs o f a ll p er so ns c om bi ne d w it h c ap it al i np ut , u si ng l ab or a ndcap i ta l sha res o f ou tput a s we igh ts .

(7 ) Average annual percen t change based on compound rate fo rmula .



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Documents

Multfactor Productivity Series