TEXT
Table 1.  Private business sector: Productivity and related measures, 1948-93 [1]
Table 2.  Private nonfarm business sector: Productivity and related measures, 1948-93 [1]
Table 3.  Private business sector: Productivity and related measures, 1949-93 [1]
Table 4.  Private nonfarm business sector: Productivity and related measures, 1949-93 [1]
Table 5. Real capital input by asset type, 1948-93
Table 6. Private business sector: Real capital input by asset type, 1948-93
Table 7. Private nonfarm business sector: Real capital input by asset type, 1948-93

 
 
Historical, technical              USDL 95-48
  information:                     (202) 606-5606 For Release: 10:00 AM EST
Media contact:                     (202) 606-5902 Tuesday, February 14, 1995
 
 
                     MULTIFACTOR PRODUCTIVITY TRENDS, 1993
 
                 Private Business and Private Nonfarm Business
 
 
     The Bureau of Labor Statistics (BLS) of the U.S. Department of Labor today
reported multifactor productivity data--output per unit of combined labor and
capital inputs--for 1993.  BLS multifactor productivity uses chain-weighted
output measures in place of constant 1987 dollar output used in the BLS labor
productivity (output per hour) measures, which are published quarterly on a
more current basis.  (See summary of methods beginning on page 8.)
 
     Multifactor productivity changed at the following percentage rates in the
most recent year available:
 
                                           1992-93
               Private business              0.6
               Private nonfarm business      0.7
 
     Multifactor productivity increased for the second consecutive year in
1993, but growth slowed to about half the rate of 1992.  The 1993 annual
changes are summarized in table A; further detail and historical measures are
shown in tables 1 through 7.
 
     A change in multifactor productivity reflects the difference between the
change in output (production of goods and services) and the change in labor and
capital inputs engaged in the production of the output.  Multifactor
productivity does not measure the specific contributions of labor, capital, or
any other factor of production.  Instead, it reflects the joint effects of many
factors, including new technology, economies of scale, managerial skill, and
change in the organization of production.
 
 
                                                                 2
 
 
Table A.  Productivity and related data, percentage changes, 1992-93
 
 
                                                                 Private
                                                    Private      nonfarm
 Item                                               business 1/  business 1/
 
 Productivity:
 
   Multifactor productivity 2/..................      0.6        0.7
   Output per hour of all persons.............        0.7        0.7
   Output per unit of capital services.......         0.9        1.1
 
 Output.............................................. 2.9        3.3
 
 Inputs:
 
   Labor input........................................2.4        2.7
   Capital services...................................2.0        2.1
   Combined units of labor and
     capital inputs 3/................................2.3        2.6
 
 Analytic Ratio:
   Capital services per hour of
     all persons .....................................-0.2       -0.4
 
 
1/ Excludes government enterprises.
2/ Output per unit of combined labor and capital inputs.
3/ Labor input index combined with capital service input index, weighted
   by labor's and capital's shares of nominal output.
 
 
     A change in multifactor productivity reflects the change in output that
cannot be accounted for by the change in combined inputs of labor and capital.
In contrast, a change in labor productivity reflects the change in output that
cannot be accounted for by the change in hours of all persons.
 
Changes in 1993
 
   Private business sector
 
     Multifactor productivity in private business rose 0.6 percent in 1993.
The 1993 gain was less than half the size of the 1992 gain (tables 1 and 3).
While the 2.9 percent increase in output for 1993 was similar to the 1992
increase, combined units of capital and labor advanced at a 2.3 percent rate,
more than twice the 1992 growth rate.  Output in 1993 grew faster than in any
year since 1988, but the gain was less than the average gain of the previous
economic expansion (3.9 percent per year for the period 1982-90).  Output is
measured as a chained superlative index (Fisher Ideal).  This output index is
conceptually consistent with the alternative output indexes produced by the
Bureau of Economic Analysis, U.S. Department of Commerce, rather than more
traditional constant dollar output measures.
 
 
                                                                 3
 
 
     Capital services and especially labor input grew more rapidly in 1993 than
in 1992.  Labor input posted a 2.4 percent gain, more than twice the 1992
increase.  Unlike 1992, an increase in employment (1.9 percent) accounted for
most of the gain in labor input in 1993, while a slightly longer work week (0.3
percent) and an increase in the composition of labor (0.2 percent) accounted
for the remainder.  Capital services advanced 2.0 percent in 1993.  Although
capital services increased more rapidly than in 1992, the rate was slow viewed
in historical terms.  Among the types of capital investment (equipment,
structures, inventories, residential rental housing, and land), the capital
services of equipment posted the largest gain (tables 5 and 6).
 
     Labor productivity or output per hour worked advanced 0.7 percent in 1993,
its slowest rate since 1989.  Capital productivity (the ratio of output to
capital services) increased 0.9 percent.  Capital services per hour dropped 0.2
percent in 1993 after 4 years of increases.
 
   Private nonfarm business
 
     Multifactor productivity in private nonfarm business grew 0.7 percent in
1993 (tables 2 and 4).  Output increased 3.3 percent, and combined units of
capital and labor inputs rose 2.6 percent.  The growth rate of labor input more
than doubled to 2.7 percent.  As with the private business sector, the increase
in employment (2.1 percent) largely accounted for the growth in labor input.
The remainder of the increase stemmed from a 0.4 percent rise in the work week
and a 0.2 percent gain in labor composition.  Capital services increased 2.1
percent in 1993.  Capital services continued to grow slowly by historical
standards.  Most components of capital services also posted small gains (tables
5 and 7).  The services of equipment accounted for most of the faster growth in
capital services.
 
     In 1993, the 0.7 percent gain in labor productivity was the smallest since
1990.  Capital productivity grew slightly faster than in 1992.  Capital
services per hour declined 0.4 percent, matching the previous drop in 1988.
 
Long-term trends
 
     Labor productivity growth (output per hour) differs from multifactor
productivity (output per unit of combined capital and labor inputs) in the
treatment of capital and hours.  Labor productivity measures do not explicitly
account for the effects of capital or of shifts in the composition of labor on
output growth.  As a result, changes in capital intensity (the capital-hours
ratio) and labor composition can influence labor productivity growth.  However,
multifactor productivity (MFP) treats capital as an explicit factor of
production, and shifts in the composition of labor are included in the measures
of labor input.  Therefore, changes in capital intensity and labor composition
do not affect measures of MFP.  Long-term labor productivity growth can be
viewed as the sum of three components: Multifactor productivity growth, the
contribution of increased capital intensity, and the contribution of shifts in
the composition of the work force.
 
 
                                                                 4
 
 
     From 1948 to 1993, output per hour grew at an annual rate of 2.4 percent
in private business and 2.1 percent in private nonfarm business (table B).  Of
the 2.4 percent growth rate in labor productivity in private business, 1.3
percent can be attributed to increases in multifactor productivity, 0.9 percent
to the contribution of capital intensity, and 0.2 percent to changes in labor
composition.  The contribution of capital intensity equals the change in the
capital-hours ratio multiplied by capital's share of total costs. The
contribution of labor composition equals the difference between the growth rate
of labor input and the growth rate of hours multiplied by labor's share of
total costs.  Historically, capital's share has been less than one-third of
total costs.
 
     The widely discussed post-1973 productivity slowdown is apparent from the
data in table B.  From 1948 to 1973, multifactor productivity grew at an annual
rate of 2.2 percent in private business and 1.9 percent in private nonfarm
business.  These rates, combined with the growth rates in the contributions of
capital intensity and labor composition, resulted in labor productivity growth
rates of 3.4 percent and 2.9 percent, respectively, in private business and
private nonfarm business.
 
     During the period 1973 to 1979, gains in multifactor productivity slowed
to only 0.5 percent per year in private business.  At the same time, the
average annual contribution of capital intensity decreased to 0.7 percent, and
the contribution of labor composition change was zero. Labor productivity,
therefore, increased only 1.2 percent per year from 1973 to 1979.  A similar
slowdown occurred in private nonfarm business during the 1973-79 period.
 
     Between 1979 and 1990, multifactor productivity was almost unchanged in
private business and private nonfarm business.  Output per hour nevertheless
continued to advance at the same rates as in the 1973-79 period.  The
contribution of labor composition increased to 0.3 percent per year in both
sectors, essentially offsetting further declines in multifactor productivity
growth.
 
     By post-1973 standards, labor productivity had relatively rapid gains of
1.5 percent per year during 1990-93 in both sectors.  The increase in labor
productivity in private business was the result of a 0.4 percent per year
growth rate in multifactor productivity, a 0.6 percent contribution of capital
intensity, and an unusually large 0.6 percent contribution of labor
composition.  Trends in private nonfarm business were virtually identical.
However, productivity measures are strongly cyclical, and the 1990-93 period
was dominated by the recovery from the 1990-91 recession.  As a result, the
data for this short period may not be indicative of new underlying trends and
are not strictly comparable to trends in earlier periods.
 
 
                                                                 5
 
 
Table B.  Compound average annual rates of growth in output per hour of all
persons, the contributions of capital intensity, labor composition, and
multifactor productivity, by major sector, 1948 to 1993
 
 
 
                                             1948-  1948- 1973-  1979-  1990-
 Item                                        1993   1973  1979   1990   1993
 1/
 
           Private business 2/
 
   Output per hour of all persons             2.4    3.4    1.2  1.2    1.5
 
      Contribution of capital intensity 3/    0.9    1.0    0.7  0.7    0.6
 
      Contribution of labor composition 4/    0.2    0.2    0.0  0.3    0.6
 
      Multifactor productivity 5/             1.3    2.2    0.5  0.2    0.4
 
 
           Private nonfarm business 2/
 
   Output per hour of all persons             2.1    2.9    1.0  1.0    1.5
 
      Contribution of capital intensity 3/    0.8    0.9    0.7  0.7    0.6
 
      Contribution of labor composition 4/    0.2    0.2    0.0  0.3    0.6
 
      Multifactor productivity 5/             1.1    1.9    0.3  0.0    0.3
 
        Contribution of R&D to
          multifactor productivity            0.2    0.2    0.1  0.2    0.2
 
 
1/ Because 1990-93 is not a completed business cycle,
   comparison of trends with earlier periods may be misleading.
2/ Excludes government enterprises.
3/ Growth rate in capital services per hour times capital's share
   of current dollar costs.
4/ Growth rate of labor input less the growth rate of hours of
   all persons times labor's share of current dollar costs.
5/ Output per unit of combined labor and capital inputs.
 
Note: The sum of multifactor productivity and the contributions of capital
intensity and laborcomposition may not equal labor productivity due to
independent rounding.
 
Source:  Tables 1-2.
 
 
                                                                 6
 
 
     While MFP reflects many influences, it is generally believed that
technological change is one of the primary contributors.  For private nonfarm
business, BLS has now estimated the direct effects of firms' spending on
research and development (R&D) on MFP growth within their own industries.
Because many people associate R&D spending and the resulting technology
improvements with productivity, BLS has not adjusted MFP to exclude the effects
of R&D.  Instead, the estimated effects are shown separately (table B).  The
contribution of R&D averaged 0.2 percent per year for the entire 1948-93
period.  Its contribution slowed to 0.1 percent per year during the 1973-79
period, but it has since returned to the 0.2 annual growth rate of the pre-1973
period.
 
 
Summary of Methods
 
     This section describes the major data sources and the procedures used in
deriving BLS multifactor productivity indexes.  More detailed information on
methods, limitations, and data sources is provided in BLS Bulletin 2178,
"Trends in Multifactor Productivity, 1948-81."
 
     The multifactor productivity indexes are derived by dividing an output
index by an index of labor input and capital services.  The output indexes are
computed as chained superlative indexes (Fisher Ideal indexes) of components of
real output.  For the years 1959-93, the output indexes are supplied by the
Bureau of Economic Analysis (BEA) of the U.S. Department of Commerce.  BLS
adjusts these to eliminate the output of government enterprises.  For the years
1948-58, BLS calculated output indexes by applying the Fisher index formula to
data on categories of final expenditures in published tables from the National
Income and Product Accounts (NIPA) produced by BEA.  BLS linked these two
indexes at 1959.  Since 1983, BLS has used chained superlative indexes
(Tornqvist indexes) to aggregate inputs.  BLS has used several data sets to
verify that Tornqvist and Fisher indexes yield results that are empirically
quite similar.
 
     Capital input measures the services derived from the stock of physical
assets.  The assets included are fixed business equipment, structures,
inventories, and land.  Structures include nonresidential structures and
residential capital which is rented out by profit-making firms or persons.
Financial assets are excluded as are owner-occupied residential structures.
The aggregate capital measures are obtained by (Tornqvist) weighting the
capital stocks for each asset type within each of 53 industries using estimated
rental prices for each asset type.  Each rental price reflects the nominal rate
of return to all assets within the industry and rates of economic depreciation
and revaluation for the specific asset; rental prices are adjusted for the
effects of taxes.  Data on investments in physical assets and gross product
originating by industry, used in measuring the rental prices, are obtained from
BEA.
 
 
                                                                 7
     Labor input is obtained by (Tornqvist) weighting the hours worked by all
persons, classified by education, work experience, and gender, by their shares
of labor compensation.  Hours paid of employees are obtained from the Current
Employment Statistics program.  The hours at work of proprietors, unpaid family
workers, and farm employees are derived from the Current Population Survey.
The hours of employees are converted to an at-work basis by using the Hours At
Work survey.  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 of all persons. Additional information concerning data sources and
methods of measuring labor composition can be found in BLS Bulletin 2426,
"Labor Composition and U.S. Productivity Growth, 1948-90."
 
     The labor and capital components of the input indexes are combined with
(Tornqvist) weights which represent each component's share of total costs.
Total costs are defined as the value of output (gross product originating) less
a portion of indirect business taxes.  Most indirect taxes such as excise taxes
are excluded from costs; however, property and motor vehicle taxes remain in
total costs.  The index uses changing weights: the share in each year is
averaged with the preceding year's share.
 
     The stock of Research and Development (R&D) in private nonfarm business is
derived by cumulating constant dollar measures of R&D expenditures and allowing
for depreciation.  Current dollar expenditures for privately financed R&D for
the years 1953-93 are obtained from annual issues of Research and Development
in Industry published by the National Science Foundation.  Price deflators and
estimates of the rate of depreciation are developed by BLS. Further description
of these data and methods can be found in BLS Bulletin 2331, "The Impact of
Research and Development on Productivity Growth."
 
     Data are presented for the private business and private nonfarm business
sectors.  The private business sector, which accounts for about 80 percent of
gross domestic product, includes all of gross domestic product except the
output of general government, government enterprises, non-profit institutions,
the rental value of owner-occupied real estate, and the output of paid
employees of private households.  The private nonfarm business sector also
excludes farms, but includes agricultural services.
 
     These multifactor productivity measures describe the relationship between
output in real terms and the labor time and capital services involved in its
production.  They do not measure the specific contributions of labor, capital,
or any other factor of production.  Rather, they reflect the joint effects of
many factors, including new technology, economies of scale, managerial skill,
and change in the organization of production.
 
 
                                                                 8
 
 
Notes:
     BLS uses current dollar Gross Product Originating (GPO) data to estimate
capital rental prices.  Revised current dollar GPO data by industry, and its
components by industry, are now available from BEA for the period 1959-92.  For
years prior to 1959, unrevised current dollar GPO data were used.  GPO data for
1993 are not yet available.  In the absence of 1993 GPO data, the BLS
extrapolated capital asset cost shares so that relative rental prices were
unchanged between 1992 and 1993.
 
     Value added measures of output for manufacturing are not available prior
to 1977.  Consequently, multifactor productivity measures for manufacturing
using this output concept are unavailable.  Measures of capital and labor
inputs in manufacturing for the years 1948-93 are available upon request.  In
addition, manufacturing multifactor productivity, measured as gross output per
combined units of capital, labor, energy, materials, and purchased business
services, is available on request for the years 1948-91.
 
     Information in this release will be made available to sensory-impaired
individuals upon request. Voice phone: 202-606-STAT; TDD phone: 202-606-5897;
TDD message referral phone number: 1-800-326-2577.
 
 
Table 1.  Private business sector: Productivity and related measures, 1948-93 [1]
 
Indexes 1987=100
 
                                  Productivity                                           Inputs
                _____________________________________________             __________________________________________
 Year       Output per      Output per      Multifactor         Output         Labor     Capital    Combined units       Capital per
           hour of all       unit of        productivity                       input     services   of labor and         hour of
             persons         capital            [2]               [3]           [4]        [5]      capital inputs [6]   all persons
 
 
1948          35.9             116.5            55.6              25.6          64.1      22.0           46.0           30.8
1949          37.2             113.7            56.4              25.5          61.9      22.5           45.3           32.7
 
1950          40.5             119.7            60.4              28.1          63.0      23.5           46.5           33.9
1951          42.0             120.7            61.9              29.9          64.9      24.8           48.3           34.8
1952          43.0             118.5            62.4              30.6          64.9      25.8           49.0           36.3
1953          44.6             119.7            63.8              32.0          66.0      26.7           50.1           37.2
1954          45.6             115.8            63.9              31.6          64.2      27.3           49.4           39.4
 
1955          47.7             121.0            66.8              34.3          66.7      28.3           51.3           39.4
1956          47.9             118.5            66.4              34.9          67.8      29.4           52.5           40.4
1957          49.5             116.9            67.4              35.4          66.9      30.3           52.5           42.3
1958          51.0             112.2            67.8              34.7          63.9      31.0           51.2           45.5
1959          52.6             117.4            70.2              37.2          66.4      31.7           53.0           44.8
 
1960          53.5             116.0            70.5              37.8          66.7      32.6           53.6           46.1
1961          55.6             115.7            72.1              38.6          65.9      33.4           53.5           48.1
1962          58.3             119.4            74.8              41.1          67.5      34.4           55.0           48.8
1963          60.7             120.7            77.0              43.0          68.0      35.6           55.8           50.3
1964          63.7             123.7            80.1              45.8          69.1      37.0           57.1           51.5
 
1965          66.0             126.0            82.6              48.9          71.2      38.8           59.2           52.4
1966          68.7             126.7            85.1              52.2          72.8      41.2           61.3           54.2
1967          70.4             122.2            85.4              53.2          72.6      43.5           62.3           57.6
1968          72.9             122.5            87.7              55.8          73.5      45.6           63.7           59.5
1969          73.4             120.4            87.4              57.5          75.4      47.8           65.8           60.9
 
1970          74.8             115.1            87.2              57.4          74.2      49.8           65.8           65.0
1971          78.0             115.1            90.0              59.6          73.6      51.7           66.2           67.8
1972          80.4             117.9            92.6              63.5          76.1      53.8           68.6           68.2
1973          83.0             120.1            95.3              67.9          78.7      56.6           71.3           69.1
1974          81.8             112.4            92.1              66.9          79.2      59.5           72.6           72.8
 
1975          84.4             107.1            92.7              66.0          75.7      61.6           71.1           78.8
1976          87.4             111.0            96.2              70.3          77.7      63.4           73.1           78.8
1977          89.1             113.9            98.3              74.5          80.8      65.5           75.8           78.3
1978          89.8             114.9            99.0              78.8          84.9      68.5           79.6           78.1
1979          89.3             112.9            98.3              80.9          87.4      71.6           82.3           79.0
 
1980          89.1             105.8            96.0              79.9          86.8      75.5           83.2           84.2
1981          90.9             103.3            96.2              82.1          88.0      79.5           85.3           88.0
1982          90.5              96.2            93.3              79.6          86.6      82.7           85.3           94.1
1983          93.1              97.9            95.3              83.3          88.5      85.1           87.4           95.1
1984          95.6             102.2            98.3              90.4          93.7      88.5           92.0           93.5
 
1985          97.0             101.2            98.8              93.7          95.8      92.6           94.8           95.9
1986          99.6              99.7            99.8              96.7          96.8      97.0           96.8           99.9
1987         100.0             100.0           100.0             100.0          100.0     100.0          100.0          100.0
1988         100.9             101.4           100.5             104.3          104.2     102.9          103.8          99.6
1989         101.0             101.3           100.3             107.0          107.2     105.6          106.7          99.7
 
1990         101.9              99.8           100.0             107.9          107.8     108.2          107.9          102.1
1991         102.9              96.8            99.0             106.5          106.5     110.0          107.5          106.3
1992         105.9              97.9           100.5             109.3          107.5     111.6          108.8          108.1
1993         106.6              98.8           101.1             112.5          110.1     113.8          111.3          107.9
___________________________________________________________________________________________________________________________
 
See footnotes following table 4.      Source: Bureau of Labor Statistics
 
 
 
Table 2.  Private nonfarm business sector: Productivity and related measures, 1948-93 [1]
 
Indexes 1987=100
 
                                  Productivity                                           Inputs
                _____________________________________________             __________________________________________
 Year       Output per      Output per      Multifactor         Output         Labor     Capital    Combined units       Capital per
           hour of all       unit of        productivity                       input     services   of labor and         hour of
             persons         capital            [2]               [3]           [4]        [5]      capital inputs [6]   all persons
 
 
1948          41.6             122.9            61.5              24.7          54.2      20.1           40.2                33.8
1949          43.4             120.3            62.8              24.7          51.9      20.6           39.4                36.1
 
1950          46.3             126.4            66.5              27.2          53.8      21.5           40.9                36.6
1951          47.7             128.8            68.3              29.3          56.3      22.8           43.0                37.1
1952          48.5             126.3            68.2              30.0          57.1      23.7           44.0                38.4
1953          49.4             127.3            68.9              31.3          59.0      24.6           45.5                38.8
1954          50.5             122.8            68.9              30.9          57.2      25.2           44.8                41.2
 
1955          52.9             128.5            72.0              33.7          59.7      26.2           46.7                41.2
1956          52.7             125.8            71.3              34.4          61.3      27.3           48.2                41.9
1957          54.0             124.1            72.0              35.0          61.2      28.2           48.6                43.5
1958          55.4             118.9            72.2              34.3          58.5      28.8           47.4                46.6
1959          57.1             124.8            74.8              36.9          61.1      29.5           49.3                45.8
 
1960          57.7             122.6            74.9              37.4          61.4      30.5           49.9                47.0
1961          59.7             122.2            76.1              38.2          61.1      31.2           50.1                48.8
1962          62.5             126.4            78.9              40.8          63.1      32.3           51.8                49.4
1963          64.7             127.6            81.0              42.7          63.8      33.5           52.7                50.7
1964          67.6             131.0            84.1              45.6          65.3      34.8           54.3                51.6
 
1965          69.7             133.1            86.4              48.8          67.6      36.7           56.5                52.3
1966          72.0             134.0            88.6              52.2          69.9      39.0           58.9                53.8
1967          73.4             128.6            88.7              53.1          69.7      41.3           59.9                57.1
1968          76.0             129.1            91.1              55.9          70.7      43.3           61.4                58.9
1969          76.1             126.5            90.4              57.6          73.1      45.6           63.8                60.2
 
1970          77.3             120.5            89.9              57.4          72.0      47.7           63.9                64.1
1971          80.4             120.2            92.6              59.6          71.6      49.6           64.3                66.9
1972          82.9             123.1            95.3              63.6          74.1      51.7           66.7                67.3
1973          85.6             125.3            98.1              68.3          76.9      54.5           69.6                68.3
1974          84.3             116.9            94.7              67.2          77.4      57.5           71.0                72.1
 
1975          86.4             110.3            94.8              65.8          73.9      59.7           69.4                78.4
1976          89.4             114.4            98.4              70.4          76.1      61.6           71.5                78.2
1977          90.9             117.0           100.2              74.6          79.4      63.8           74.5                77.7
1978          91.7             118.3           101.1              79.1          83.5      66.9           78.2                77.5
1979          90.8             115.4            99.9              81.2          86.2      70.3           81.2                78.7
 
1980          90.6             108.2            97.7              80.2          85.7      74.2           82.1                83.8
1981          91.9             104.8            97.3              82.0          87.0      78.2           84.3                87.7
1982          91.4              97.3            94.1              79.4          85.6      81.6           84.4                94.0
1983          94.5              99.5            96.7              83.6          87.6      84.1           86.5                95.0
1984          96.4             103.3            99.2              90.6          93.0      87.7           91.3                93.4
 
1985          97.2             101.7            99.1              93.5          95.5      92.0           94.4                95.6
1986          99.8             100.0           100.0              96.7          96.6      96.7           96.7                99.9
1987         100.0             100.0           100.0             100.0          100.0     100.0          100.0               100.0
1988         100.9             101.3           100.5             104.5          104.4     103.2          104.0               99.6
1989         100.7             100.9            99.9             107.1          107.6     106.1          107.1               99.9
 
1990         101.3              99.1            99.4             107.8          108.3     108.8          108.5               102.3
1991         102.5              96.0            98.5             106.4          106.8     110.8          108.0               106.7
1992         105.1              96.8            99.6             108.9          108.0     112.6          109.3               108.7
1993         105.9              97.8           100.3             112.4          110.9     115.0          112.1               108.2
___________________________________________________________________________________________________________________________
 
See footnotes following table 4.      Source: Bureau of Labor Statistics
 
 
 
 
Table 3.  Private business sector: Productivity and related measures, 1949-93 [1]
 
Percent Change
 
                                  Productivity                                           Inputs
                _____________________________________________             __________________________________________
 Year       Output per      Output per      Multifactor         Output         Labor     Capital    Combined units       Capital per
           hour of all       unit of        productivity                       input     services   of labor and         hour of
             persons         capital            [2]               [3]           [4]        [5]      capital inputs [6]   all persons
 
 
1949           3.5              -2.4             1.4              -0.2          -3.4      2.3            -1.5                6.1
 
1950           9.0               5.2             7.2              10.1          1.7       4.6            2.7                 3.6
1951           3.5               0.8             2.4               6.4          3.0       5.5            3.9                 2.7
1952           2.4              -1.8             0.8               2.2          0.0       4.1            1.3                 4.3
1953           3.6               1.0             2.3               4.6          1.7       3.5            2.2                 2.6
1954           2.4              -3.2             0.1              -1.2          -2.8      2.1            -1.3                5.8
 
1955           4.7               4.5             4.5               8.5          3.9       3.8            3.8                 0.1
1956           0.3              -2.1            -0.5               1.8          1.7       4.0            2.4                 2.5
1957           3.3              -1.4             1.5               1.6          -1.2      3.0            0.0                 4.8
1958           3.1              -4.0             0.6              -2.0          -4.6      2.1            -2.6                7.4
1959           3.1               4.6             3.5               7.1          4.0       2.3            3.5                 -1.5
 
1960           1.8              -1.2             0.5               1.7          0.5       3.0            1.2                 3.0
1961           3.9              -0.2             2.3               2.0          -1.3      2.3            -0.2                4.2
1962           4.9               3.2             3.7               6.5          2.5       3.2            2.7                 1.6
1963           4.1               1.1             3.0               4.6          0.7       3.5            1.5                 3.0
1964           4.9               2.5             4.1               6.5          1.6       3.9            2.3                 2.3
 
1965           3.6               1.8             3.1               6.9          3.0       5.0            3.7                 1.8
1966           4.2               0.6             3.0               6.6          2.4       6.0            3.5                 3.6
1967           2.4              -3.6             0.4               2.0          -0.3      5.7            1.6                 6.2
1968           3.5               0.3             2.6               4.9          1.2       4.7            2.2                 3.2
1969           0.7              -1.7            -0.3               3.1          2.7       4.9            3.4                 2.5
 
1970           1.9              -4.4            -0.3              -0.2          -1.7      4.3            0.1                 6.6
1971           4.3               0.0             3.2               3.8          -0.8      3.8            0.5                 4.3
1972           3.1               2.5             2.9               6.6          3.5       4.0            3.6                 0.6
1973           3.3               1.8             3.0               7.0          3.4       5.1            3.9                 1.4
1974          -1.5              -6.4            -3.4              -1.6          0.6       5.1            1.9                 5.2
 
1975           3.2              -4.8             0.7              -1.3          -4.4      3.6            -2.0                8.4
1976           3.6               3.6             3.8               6.6          2.6       2.9            2.7                 0.0
1977           1.9               2.6             2.1               6.0          4.0       3.3            3.8                 -0.6
1978           0.7               1.0             0.7               5.7          5.0       4.7            4.9                 -0.3
1979          -0.6              -1.8            -0.7               2.7          2.9       4.5            3.4                 1.2
 
1980          -0.2              -6.3            -2.3              -1.2          -0.7      5.5            1.1                 6.5
1981           2.1              -2.3             0.2               2.8          1.4       5.2            2.5                 4.5
1982          -0.4              -6.8            -3.1              -3.1          -1.6      4.0            0.0                 6.9
1983           2.8               1.7             2.2               4.7          2.2       2.9            2.4                 1.1
1984           2.7               4.4             3.1               8.6          5.9       4.0            5.3                 -1.6
 
1985           1.5              -1.0             0.6               3.6          2.3       4.6            3.0                 2.6
1986           2.7              -1.4             1.1               3.2          1.0       4.7            2.2                 4.2
1987           0.4               0.3             0.2               3.4          3.3       3.1            3.3                 0.1
1988           0.9               1.4             0.5               4.3          4.2       2.9            3.8                 -0.4
1989           0.1              -0.1            -0.3               2.6          3.0       2.6            2.9                 0.1
 
1990           0.9              -1.5            -0.2               0.9          0.5       2.4            1.1                 2.4
1991           1.0              -3.0            -1.0              -1.4          -1.2      1.7            -0.3                4.1
1992           2.9               1.2             1.5               2.7          1.0       1.5            1.1                 1.7
1993           0.7               0.9             0.6               2.9          2.4       2.0            2.3                 -0.2
___________________________________________________________________________________________________________________________
 
See footnotes following table 4.      Source: Bureau of Labor Statistics
 
 
 
 
Table 4.  Private nonfarm business sector: Productivity and related measures, 1949-93 [1]
 
Percent Change
 
                                  Productivity                                           Inputs
                _____________________________________________             __________________________________________
 Year       Output per      Output per      Multifactor         Output         Labor     Capital    Combined units       Capital per
           hour of all       unit of        productivity                       input     services   of labor and         hour of
             persons         capital            [2]               [3]           [4]        [5]      capital inputs [6]   all persons
 
 
1949           4.4              -2.1             2.2               0.0          -4.1      2.1            -2.2           6.6
 
1950           6.8               5.1             5.9              10.0          3.6       4.7            3.9            1.6
1951           3.1               1.9             2.7               7.8          4.6       5.8            5.0            1.2
1952           1.6              -1.9            -0.1               2.2          1.4       4.2            2.3            3.5
1953           1.9               0.8             1.0               4.5          3.3       3.7            3.5            1.2
1954           2.3              -3.5             0.0              -1.4          -2.9      2.2            -1.4           6.0
 
1955           4.7               4.7             4.5               8.9          4.3       4.1            4.2            0.0
1956          -0.4              -2.1            -1.1               2.1          2.7       4.3            3.2            1.7
1957           2.5              -1.4             1.0               1.8          -0.2      3.2            0.9            4.0
1958           2.6              -4.2             0.4              -2.1          -4.4      2.2            -2.5           7.1
1959           3.1               5.0             3.6               7.6          4.5       2.5            3.9            -1.8
 
1960           1.0              -1.7             0.1               1.4          0.4       3.2            1.3            2.8
1961           3.5              -0.3             1.6               2.1          -0.4      2.4            0.4            3.9
1962           4.7               3.4             3.6               7.0          3.2       3.4            3.3            1.2
1963           3.6               0.9             2.6               4.6          1.1       3.6            1.9            2.6
1964           4.4               2.7             3.9               6.9          2.3       4.1            2.9            1.7
 
1965           3.0               1.6             2.7               6.9          3.6       5.2            4.1            1.4
1966           3.4               0.6             2.6               7.0          3.3       6.3            4.3            2.7
1967           2.0              -4.0             0.1               1.8          -0.2      6.0            1.7            6.2
1968           3.5               0.4             2.7               5.3          1.4       4.9            2.4            3.1
1969           0.1              -2.0            -0.8               3.0          3.3       5.1            3.9            2.2
 
1970           1.5              -4.7            -0.6              -0.4          -1.4      4.6            0.2            6.6
1971           4.0              -0.3             3.0               3.7          -0.6      4.0            0.7            4.3
1972           3.1               2.4             2.9               6.8          3.5       4.2            3.7            0.7
1973           3.2               1.7             2.9               7.4          3.8       5.5            4.3            1.5
1974          -1.5              -6.7            -3.4              -1.6          0.6       5.5            1.9            5.6
 
1975           2.6              -5.6             0.1              -2.0          -4.5      3.8            -2.2           8.7
1976           3.4               3.7             3.8               6.9          3.0       3.1            3.1            -0.3
1977           1.6               2.3             1.8               6.0          4.3       3.6            4.1            -0.6
1978           0.9               1.2             0.9               6.0          5.1       4.8            5.0            -0.3
1979          -0.9              -2.4            -1.2               2.6          3.3       5.2            3.8            1.5
 
1980          -0.2              -6.3            -2.2              -1.1          -0.6      5.5            1.1            6.5
1981           1.4              -3.1            -0.4               2.2          1.5       5.5            2.6            4.7
1982          -0.6              -7.2            -3.3              -3.2          -1.6      4.3            0.1            7.1
1983           3.4               2.3             2.8               5.4          2.3       3.1            2.5            1.1
1984           2.1               3.9             2.6               8.3          6.2       4.3            5.6            -1.7
 
1985           0.8              -1.6            -0.1               3.3          2.7       4.9            3.4            2.4
1986           2.7              -1.7             0.9               3.3          1.2       5.1            2.4            4.4
1987           0.2               0.0             0.0               3.4          3.5       3.4            3.5            0.1
1988           0.9               1.3             0.5               4.5          4.4       3.2            4.0            -0.4
1989          -0.2              -0.4            -0.5               2.5          3.1       2.9            3.0            0.2
 
1990           0.6              -1.8            -0.5               0.7          0.7       2.5            1.2            2.4
1991           1.1              -3.1            -0.9              -1.4          -1.4      1.8            -0.4           4.4
1992           2.6               0.8             1.1               2.4          1.1       1.6            1.3            1.8
1993           0.7               1.1             0.7               3.3          2.7       2.1            2.6            -0.4
___________________________________________________________________________________________________________________________
 
See footnotes following table 4.      Source: Bureau of Labor Statistics
 
 
 
 
 
 
 
                                                          Footnotes, Tables 1-4
 
Source:  Output data are from the Bureau of Economic Analysis (BEA), U.S. Department of
Commerce, and modified by the Bureau of Labor Statistics (BLS), U.S. Department of Labor.
Compensation and hours data are from the BLS.  Capital measures are based on data supplied by
BEA and the U.S. Department of Agriculture.
 
(1) The private business sector includes all of gross domestic product except the output of
    general government, government enterprises, non-profit institutions, the rental value
    of owner-occupied real estate and the output of paid employees of private households.
    The private nonfarm business sector also excludes farms but includes agricultural services.
 
(2) Output per unit of combined labor and capital inputs.
 
(3) Gross domestic product originating in the sector, superlative chained index.
 
(4) Index of the hours at work of all persons including employees, proprietors, and unpaid
     family workers classified by education, work experience and gender.  The index is
     computed by combining changes in the hours of each education, experience and gender
     group by its share of labor compensation.
 
(5) A measure of the flow of capital services used in the sector.
 
(6) Labor input combined with capital input, using labor's and capital's shares
     of costs as weights.
 
 
 
 
 
 
Table 5. Real capital input by asset type, 1948-93
 
Average annual growth rates (percent)
 
Private business
 
                                          Rental
            All    Equip-              Residential
  Period  Assets    ment    Structures    Capital Inventories    Land
 
 
1948-93   3.7      5.2       3.3         2.5       3.2       2.5
  1948-73 3.9      5.5       3.5         2.4       4.0       2.3
  1973-79 4.0      6.2       3.0         2.7       3.6       2.0
  1979-90 3.8      4.6       3.5         3.0       2.1       3.6
  1990-93 1.7      2.5       1.3         1.2       0.8       1.2
    1992  1.5      2.0       1.2         1.1       1.4       1.1
    1993  2.0      3.5       0.8         1.6       1.8       1.1
 
 
 
 
 
Private nonfarm business
 
                                          Rental
            All    Equip-              Residential
  Period  Assets    ment    Structures    Capital Inventories    Land
 
 
1948-93   3.9      5.4       3.3         2.5       3.4       3.3
  1948-73 4.1      5.6       3.5         2.5       4.2       3.2
  1973-79 4.3      6.3       3.0         2.7       3.8       3.7
  1979-90 4.0      5.0       3.6         3.0       2.2       4.0
  1990-93 1.8      2.7       1.3         1.2       0.8       1.5
    1992  1.6      2.2       1.3         1.1       1.3       1.4
    1993  2.1      3.7       0.9         1.6       1.9       1.2
 
 
  Source: Bureau of Labor Statistics
 
 
 
 
 
 
Table 6. Private business sector: Real capital input by asset type, 1948-93
 
Index 1987 = 100
 
 
                                          Rental
            All    Equip-              Residential
Year      Assets    ment    Structures    Capital Inventories    Land
 
 
1948      22.0     12.2      26.1       35.7       26.4     36.3
1949      22.5     13.4      26.6       36.1       25.6     36.9
 
1950      23.5     14.6      26.9       36.5       27.9     37.5
1951      24.8     15.6      27.5       37.0       31.7     38.0
1952      25.8     17.0      28.3       37.3       32.9     38.7
1953      26.7     18.2      29.1       37.6       33.5     39.5
1954      27.3     19.1      30.1       37.9       32.7     40.4
 
1955      28.3     20.1      31.1       38.3       34.7     41.1
1956      29.4     21.2      32.4       38.7       36.5     42.1
1957      30.3     22.2      33.8       39.1       36.5     43.2
1958      31.0     22.8      35.0       39.7       36.1     44.2
1959      31.7     23.2      36.0       40.4       37.1     45.2
 
1960      32.6     23.8      37.2       41.3       38.8     45.9
1961      33.4     24.4      38.5       42.2       38.7     46.8
1962      34.4     25.1      39.8       43.4       40.7     47.8
1963      35.6     26.0      41.1       45.0       42.4     48.9
1964      37.0     27.2      42.5       46.8       44.2     50.3
 
1965      38.8     28.8      44.4       48.6       47.1     51.8
1966      41.2     31.0      46.6       50.2       51.1     53.6
1967      43.5     33.3      48.9       51.6       55.4     55.3
1968      45.6     35.3      51.0       53.2       58.2     56.8
1969      47.8     37.5      53.2       55.3       61.0     58.4
 
1970      49.8     39.7      55.4       57.4       62.9     59.7
1971      51.7     41.7      57.4       59.7       64.4     60.9
1972      53.8     43.9      59.3       62.4       66.2     62.1
1973      56.6     46.9      61.3       65.2       69.9     64.0
1974      59.5     50.5      63.4       67.2       73.7     65.7
 
1975      61.6     53.4      65.3       68.3       74.4     67.4
1976      63.4     55.8      66.9       69.3       75.8     68.7
1977      65.5     58.7      68.5       70.7       78.3     70.1
1978      68.5     63.2      70.7       72.5       82.8     71.5
1979      71.6     67.3      73.4       76.4       86.2     71.8
 
1980      75.5     71.4      76.7       81.7       86.1     77.1
1981      79.5     75.3      80.7       86.2       87.2     81.6
1982      82.7     78.5      84.8       88.8       87.2     84.8
1983      85.1     81.2      88.0       90.2       86.1     87.7
1984      88.5     84.8      90.9       92.2       92.0     91.2
 
1985      92.6     90.2      94.3       95.0       96.1     94.4
1986      97.0     95.6      97.5       97.7       99.3     96.9
1987     100.0    100.0     100.0      100.0      100.0    100.0
1988     102.9    103.8     102.2      102.4      103.2    101.7
1989     105.6    107.5     104.4      104.5      106.2    103.1
 
1990     108.2    110.7     106.7      105.8      107.9    105.6
1991     110.0    113.1     108.6      106.8      107.2    107.1
1992     111.6    115.4     109.9      108.0      108.7    108.3
1993     113.8    119.4     110.7      109.7      110.6    109.5
 
 
  Source: Bureau of Labor Statistics
 
 
 
 
 
 
Table 7. Private nonfarm business sector: Real capital input by asset type, 1948-93
 
Index 1987 = 100
 
 
                                          Rental
            All    Equip-              Residential
Year      Assets    ment    Structures    Capital Inventories    Land
 
 
1948      20.1     11.6      25.9       35.5       24.6     25.2
1949      20.6     12.6      26.3       35.8       23.8     25.8
 
1950      21.5     13.6      26.6       36.3       26.2     26.3
1951      22.8     14.5      27.2       36.7       30.1     26.9
1952      23.7     15.9      28.0       37.0       31.2     27.5
1953      24.6     17.1      28.8       37.3       31.8     28.3
1954      25.2     18.0      29.7       37.6       30.9     29.1
 
1955      26.2     18.9      30.7       38.0       33.1     29.8
1956      27.3     20.0      32.0       38.5       34.9     30.7
1957      28.2     21.0      33.5       38.9       34.9     31.7
1958      28.8     21.6      34.6       39.4       34.4     32.7
1959      29.5     22.0      35.7       40.2       35.4     33.6
 
1960      30.5     22.7      36.8       41.0       37.2     34.5
1961      31.2     23.3      38.1       41.9       37.0     35.5
1962      32.3     24.0      39.4       43.1       38.9     36.5
1963      33.5     24.9      40.7       44.7       40.7     37.6
1964      34.8     26.0      42.1       46.5       42.5     39.0
 
1965      36.7     27.7      43.9       48.3       45.4     40.6
1966      39.0     29.8      46.1       50.0       49.4     42.4
1967      41.3     32.0      48.4       51.4       53.7     44.3
1968      43.3     33.9      50.6       53.0       56.5     46.0
1969      45.6     36.2      52.7       55.1       59.3     47.8
 
1970      47.7     38.3      54.9       57.2       61.2     49.4
1971      49.6     40.2      56.9       59.5       62.7     51.0
1972      51.7     42.4      58.8       62.3       64.5     52.6
1973      54.5     45.4      60.9       65.1       68.4     55.2
1974      57.5     48.9      63.0       67.1       72.5     57.7
 
1975      59.7     51.7      64.8       68.2       73.3     60.0
1976      61.6     54.1      66.4       69.2       74.8     62.1
1977      63.8     56.9      68.0       70.5       78.2     64.1
1978      66.9     61.3      70.1       72.4       82.3     66.0
1979      70.3     65.5      72.8       76.3       85.7     68.8
 
1980      74.2     69.6      76.1       81.6       85.7     73.5
1981      78.2     73.6      80.2       86.1       86.6     78.7
1982      81.6     77.0      84.4       88.8       86.5     82.5
1983      84.1     79.8      87.6       90.2       85.4     85.7
1984      87.7     83.7      90.6       92.2       91.5     89.7
 
1985      92.0     89.4      94.1       95.0       95.8     93.2
1986      96.7     95.2      97.3       97.7       99.1     96.7
1987     100.0    100.0     100.0      100.0      100.0    100.0
1988     103.2    104.2     102.4      102.4      103.6    101.8
1989     106.1    108.2     104.7      104.5      106.9    103.5
 
1990     108.8    111.7     107.1      105.9      108.7    105.8
1991     110.8    114.4     109.2      106.8      107.8    107.7
1992     112.6    116.8     110.6      108.0      109.2    109.2
1993     115.0    121.1     111.5      109.7      111.3    110.5
 
 
  Source: Bureau of Labor Statistics