Bureau of Labor Statistics

United States

Department

of Labor

Washington, D.C. 20212

Hi storical, technical

informatio~: (202) 523-9261

Current.data: (202) 523-1221 or 1208

Media contact: (202) 523-1913

USDL 85-405

For Release: 10:00 AM EDT

Thursday, October 3, 1985

MULTI FACTOR PRODUCTIVITY MEASURES

Private Business, Private Nonfarm Business, and Manufacturing Sectors

Annual Measures for 1984

Multifactor productivity--output per unit of combined labor and capital

inputs--grew 4.1 percent in 1984 in private business, the Bureau of Labor

Statistics of the U.S. Department of Labor reported today (table A). This is

the largest increase in multifactor productivity since 1950 when it increased

7.2 percent.

Changes in mul tifactor productivity measure the difference between the

growth in ouput (the amount of goods and services produced) and the growth in

labor and capital engaged in that production. As such,. it reflects the effect

of such factors as new technology, economies of scale, changes in the

composition of the workforce and type of capital, labor management relations,

and research ~nd de~elopment.

The annual rates of change of multifactor productivity for the three major

sectors covered by the BLS measures from 1983 to 1984 are:

4.1 percent for private business,

3.6 percent for private nonfarm business, and

5.2 percent for manufacturing.

Details are given in tables 1-6.

Private business sector

Multifactor productivity increased 4.1 percent in private business from

1983 to 1984 (table 4), compared with an increase of 2.9 percent from 1982 to

1983. This rise, the largest since 1950, reflected an increase in output of

8.9 percent and an increase in combined labor and capital inputs of 4.7

percent. The increase in combined inputs resulted from increases in both hours

of all persons (5.5 percent) and capital services (3.3 percent). All five of

the principle components of capital services (equipment, structures, rental

residential, inventories, and land) increased over the year.

O~tput per hour of all persons increased 3.3 percent from 1983 to 1984.
-2-

Table A. Productivity indexes and related measures

Percent change from 1983 to 1984

Item

Pri vate

busj ness1

Private

nonfarm

busi ness1

Manu..-

facturing

P roducti vity:

Output per hour of all persons

Output per unit of capital services

Multifactor produGtivity2

Output:

Inputs:

Hours of all persons

Capital services

Combined units of labor and

capital input3

Capital services per hour of

all persons (capital-labor ratio)

Contribution of capital services per

hour to output per hour4

3.3 ?8 3.5

5.5 5.1 9.6

4.1 3.6 5.2

8.9 8.7 10.5

5.5 5.8 6.7

3.3 3.4 0.8

4.7 4.9 5.0

-2.1 -2.2 •.5.$

-0.8 -0.8 •.1.7

1 Excludes government enterprises.

2 Output per unit of combined labor and capital input.

3 Hours of all persons combined with capital service input index,

weighted by labor and capital shares.

4 Percent change in capital services per hour weighted by capital's

share of current dollar output.
-3-

Output per unit of capital services (capital productivity)

increased 5.5 percent for 1984, which also was the largest rise since

1950. Capital services per hour--the rate of substitution of capital

for labor--decreased 2.1 percent from 1983 to 1984; this was the

largest decrease in this series.

Private nonfarm business

Multifactor productivity rose 3.6 percent in the private nonfarm

business sector in 1984 (table 5). Output increased 8.7 percent and

combin e din put"S i nc rea sed 4. 9 per c en t • The r i s e i n combin e din put s

was a result of increases in hours of 5.8 percent and capital services

of 3.4 percent •. This was the largest growth in capital services since

1981 (4.3 percent) in private nonfarm business. This increase also

was reflected in all five of the components of capital in 1984.

Output p~r hou~ of all persons increased 2.8 percent in private

nonfarm business from 1983 to 1984. The ratio of capital services per

hour decreased 2.2 percent, the greatest decline since 1959 when the

decline was 2.3 percent.

Output per unit of capital services (capital productivity) rose

5.1 percent in 1984, as compared with a 3.7 percent intrease in 1983.

Manufacturing

In manufacturing, multifactor productivity increased 5.2 percent

from 1983 to 1984, the largest rise since 1976 when it increased 5.3

percent (table 6). The rise in multifactor productivity reflected an

increase of 10.5 percent in nutput and an increase in combined

inputs of 5.0 per.cent. The rise in combined inputs resulted from an

increase in hours of all persons of 6.7 percent and an increase in

cap i.tal s e r v ice s 0 f O. 8 per c e nt • The i nc rea S e i n cap ita 1 s e r v ice sin

manufacturing was the result of increases in equipment and land and

decreases in structures and inventories in 1984.

Output per hour grew 3.5 percent in manufacturing. Output per

unit of capital services "(capital productivity) increased 9.6 percent

in manufacturing in 1984. This was the largest increase since

1950, when it grew 10.4 percent. The capital-labor ratio fell 5.5

percent, equaling the largest previous decline which occured in 1959.

Long-term trends

Productivity measures vary from year to year in part because of

changes in the economy related to the business cycle. In order to get

an approximate measure of secular trends, long-term measures are

calculated. Previously, BLS published measures for the 1948-73 period

and for 1973-81. The end points of these time periods approximate

common stages in the business cycle. With the addition of 1984

measures, a third period has been added to show the results from 1981

forward.
-4-

Table B. Compound annual rates of growth in output per hour of all persons, the

contribution of capital services per hour, and multifactor productivity, by major

sector, 1948 to 1984

1948- 1948- 1973- 1981-

Measu re 1984 1973 1981 1984

Private business 1 -

Output per hour pf all persons 2.4 3.0 0.7 2.1

Contribution of capital services

per hour to output per hour 2 0.9 1.0 0.6 0.3

Multifactor 'productfvity 3 1.5 2.0 0.1 1.8

Private nonfarm business 1

Output per hour of all persons 2.1 2.5 0.6 2.2

Contribution of capital servic~s

per hour to output per hour 0.8 0.8 0.7 0.3

Multifactor productivity 3 1.3 1.7 -0.1 1.9

Manufacturing 1

Output per hour of all persons 2.6 2.9 1.5 3.3

Contribution of capital servic~s

per hour to output per hour 0.7 0.7 1.0 0.2

Multifactor productivity 3 1.9 2.2 0.5 3.1

1 Excludes government enterprises.

2 Change in capital services per hour weighted by capital's share of current

dollar output.

3 Output per unit of combined labor and capital inputs.

Source: Tables 1-3.
-5-

In the private business and nonfarm business sectors, the growth

rate in output per hour for the 1981-84 period had almost returned to

the 1948-73 trend rate of growth (table B). In manufacturing, the

'1981-84 rate exceeded the historical rate. ~1ultifactor productivity

growth al so has been increasing .faster than the earl ier trend rate.

The contribution of capital services per hour to the growth in output

per hour was at the lowest rate since 1948.

Summary of Methods

The following note briefly describes the major data sources and

the procedures 'used in deriving BLSmultifactor productivity indexes.

More detailed information on the methods, limitations, and data

sources are in BlS Bulletin 2178, "Trends in Multifactor Productivity

1948-81.11

The multifactor productivity indexes are derived by dividing an

output index. by an· input index which is a weighted average of the

hours of all persons and capital services. The output indexes are

-computed from measures of constant dollar gross domestic product,

derived from the national income and product accounts developed by the

Bureau of Economic Analysis of the u.S. Department of Commerce.

The capital input series measures the services derived from the

stock of physical assets. The assets comprise fixed business

equipment, structures, inventories, and land. Structures include

nonresidential structures and residential capital which is rented out

by profitmaking firms or persons. Financial assets are excluded as

are owner-occupied residential structures. The aggregate capital

measures are obtained by weighting each asset type by its respective

rental price.

The labor and capital components of. the input indexes are

combined with weights which represent each component's share of total

output. The index uses changing weights where the share in each year

is igeraged with the preceding year's value.

'Data are presented for the private business, private nonfarm

bus ih e s s , and man u fa c t u r fn g s e c tor s . The p r i vat e bus i ne s sse c tor,

which accounts for about 80 percent of the gross national product,

includes all activities in the economy with the exception of general

gove'rnment, government enterprises, the "rest-of-the-world" sector,

own e r - 0c cup i e d h0 u sing, non pro fit ins tit uti 0 n s, and p r i vat e h0 use h old

employees. The private nonfarm business sector also excludes

agriculture but includes agricultural services.

These multifactor productivity measures describe the relationship

between output in real terms and the paid 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, the'y reflect the joint effects of many influences" including

c h a n g e sin t e c h n0 log Y; 1eve 1 0 f 0 u t put; u t il i z a t ion 0 f cap a'c i t Y,

energy, and materials; the organization of production; managerial

skill; and the characteristics and effort of the work force.
-6-

Table 1. Private business sector: productivity and related measures, 1948-84 1/

Productivity Inputs

Year Output per Output per t1ultifactor Output Hours of Capi tal Combined units Capital

hour of all unit of product ivity all persons services of 1abor and services

persons capital y 3/ 4/ 5/ capi tal inputs y per hour

Indexes 1977=100

..•.

1948 45.3 98.9 60.0 36.8 81.3 37.2 61.3 45.8

1949 46.0 93.4 59.3 36.1 78.5 38.7 60.9 49.2

1950 49.7 98.5 63.6 39.5 79.4 40.1 62.1 50.5

1951 51.2 100.0 65.1 41.8 81.8 41.8 64.3 51.2

1952 52.9 99.2 66.3 43.2 81.7 43.6 65.2 53.3

1953 54.7 100.5 68.0 45.1 82.6 44.9 66.4 54.4

1954 55.6 96.1 67.7 44.3 79.8 46.1 65.5 57.8

1955 57.9 100.8 70.7 47.9 82.8 47.6 67.8 57.4

1956 58.5 99.8 70.9 49.2 84.1 49.3 69.4 58.6

1957 60.0 97.8 71.6 49.7 82.8 50.8 69.4 61.3

1958 61.9 94.2 72.0 48.9 79.0 51.9 67.9 65.7

1959 63.9 99.1 74.9 52.5 82.1 52.9 70.0 64.5

1960 64.8 98.4 75.4 53.3 82.2 54.1 70.7 65.9

1961 67.0 98.0 76.9 54.2 80.9 55.3 70.5 68.4

1962 69.6 101.2 79.7 57.2 82.2 56.6 71.8 68.8

1963 72.3 102.6 82.0 59.7 82.6 58.2 72.8 70.4

1964 75.4 105.2 85.0 63.3 84.0 60.2 74.5 71.6

1965 78.1 107.8 87.6 67.6 86.6 62.7 77 .2 72.4

1966 80.5 108.0 89.3 71.3 88.7 66.0 79.9 74.5

1967 82.3 104.9 89.6 72.9 88.6 69.5 81.4 78.5

1968 85.1 105.5 91.7 76.7 90.1 72.7 83.6 80.7

1969 85.3 103.7 91.3 78.9 92.5 76.1 86.5 82.3

1970 86.1 98.5 90.2 78.3 90.8 79.4 86.7 87.4

1971 89.3 98.1 92.2 80.6 90.3 82.2 87.5 91.0

,1972 92.4 101.0 95.2 86.0 93.1 85.2 90.3 91.5

1973 94.8 103.0 97.5 91.8 96.8 89.1 94.1 92.0

1974 92.5 96.5 93.8 89.9 97.2 93.1 95.8 95.9

1975 94.5 92.0 93.6 88.0 93.1 95.7 94.0 102.8

1976 97.6 96.1 97.1 93.7 95.9 97.5 96.5 101.6

1977 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

1978 100.5 101.8 101.0 105.5 105.0 103.6 104.5 98.7

1979 99.3 100.3 99.7 107.9 108.6 107.5 108.2 98.9

1980 98.7 95.6 97.6 106.4 107.8 111.4 109.0 103.3

1981 100.6 94.1 98.3 109.2 108.5 116.0 111.0 106.9

1982 100.8 89.5 96.8 106.3 105.4 118.8 109.9 112.7

1983 103.7 92.3 99.6 111.1 107.2 120.4 111.6 112.3

1984 107.1 97.4 103.7 121.0 113.0 124.3 116.8 109.9

See footnotes following table 6. Octobe r 3, 1985

SOURCE: Bureau of Labor Statistics
-7-

Table 2. Private nonfarm business sector: productivity and related measures, 1948-84 1/

Productivity

,

Inputs

Year Output per Output per r1ultifactor Output Hou rs of Capi tal Combined units Capital

hour of all unit of productivity all persons services of 1abor and services

persons capital 2/ 3/ 4/ Y capital inputs y per hour

Indexes 1977=100

1948 51.2 97.8 64.5 35.6 69.6 36.4 55.2 52.3

1949 52.3 92.6 64.1 34.9 66.8 37.7 54.5 56.5

1950 55.6 98.1 68.1 38.3 69.0 39.1 56.3 56.6

1951 56.6 100.3 69.5 40.8 72.1 40.7 58.8 56.4

1952 58.0 99.5 70.4 42.2 72.8 42.4 60.0 58.3

1953 59.0 100.7 71.4 44.1 74.7 43.8 61.7 58.6

1954 59.9 96.0 71.0 43,.2 72.1 45.0 6G.9 62.4

1955 62.3 100.8 74.1 46.8 75.1 46.5 63.2 61.9

1956 62.5 99.9 74.0 48.1 77 .0 48.2 65.1 62.6

1957 63.6 97.9 74.3 48.7 76.6 49.8 65.6 65.0

1958 65.2 93.9 74.3 47.8 73.3 50.9 64.3 69.4

1959 67.4 99.4 77 .5 51.6 76.6 51.9 66.6 67.8

1960 68.0 98.4 77 .6 52.3 77.0 53.2 67.4 69.1

1961 70.0 98.0 78.9 53.3 76.1 54.4 67.5 71.5

1962 72.5 101.3 81.7 56.4 77.8 55.7 69.0 71.6

1963 74.9 102.7 83.8 58.9 78.6 57.4 70.3 73.0

1964 77 .9 105.6 86.7 62.7 80.5 59.4 72.2 73.8

1965 80.3 108.2 89.2 67.0 83.5 62.0 75.1 74.2

1966 82.2 108.7 90.7 71.0 86.3 65.3 78.2 75.7

1967 83.8 105.3 90.7 72.5 86.5 68.9 79.9 79.6

1968 86.7 106.0 92.9 76.4 88.2 72.1 82.3 81.8

1969 86.4 104.1 92.1 78.7 91.0 75.6 85.4 83.0

1970 86.8 98.6 90.7 77 .8 89.7 78.9 85.9 88.0

1971 89.7 98.0 92.4 80.1 89.3 81.8 86.7 91.6

1972 93.0 101-1 95.7 85.8 92.2 84.8 89.6 92.0

1973 95.3 103.2 97.9 91.7 96.2 88.8 93.6 92.4

1974 92.9 96.5 94.1 89.7 96.5 93.0 95.3 96.3

1975 94.8 91.7 93.6 87.6 92.4 95.6 93.5 103.4

1976 97.8 96.1 97 .2 93.6 95.7 97.4 96.3 101.8

1977 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

1978 100.6 101.9 101.0 105.7 105.1 103.7 104.6 98.7

1979 99.0 100.1 99.4 108.0 109.1 107.9 108.7 98.9

1980 98.2 95.2 97.2 106.4 108.4 111.7 109.5 103.1

1981 99.6 93.2 97.4 108.7 109.1 116.6 111.6 106.8

1982 99.9 88.7 95.9 105.9 106.0 119.4 110.4 112.6

1983 103.5 91.9 99.4 111.3 107.6 121.1 112.0 112.6

1984 106.3 96.6 102.9' 121.0 113.8 125.2 117.5 110.1

See footnotes following table 6. Octobe r 3, 1985

SOllRCE: Bureau of Labor Statistics
-8-

Table 3. rlanufacturing business sector: productivity and related measures, 1948.64 1/

Productivity Inputs

Year Output per Output per Multi factor Output Hours of Capital Combined units Capital

hour of all unit of productivity all persons services of labor and services

persons capital 2/ }j 4/ §j capi tal inputs y per hour

Indexes 1977=100

19.48 45.1 93.6 56.1 35.8 79.4 38.3 63.9 48.2

1949 46.9 85.3 55.9 33.9 72.4 39.8 60.8 55.0

1950 49.4 94.2 59.8 38.6 78.2 41.0 64.6 52.5

1951 51.1 98.8 62.2 43.0 84.2 43.6 69.2 51.7

1952 52.1 95.1 62.1 44.5 85,4 46.7 71.6 54.7

1953 52.9 98.0 63.4 47.5 89.8 48.5 74.9 54.0

1954 53.8 88.7 62.2 44.1 82.1 49.8 70.9 60.6

1955 56.4 95.3 65.8 48.9 86.6 51.3 74.3 59.2

1956 56.0 92.0 64.7 49.2 87.9 53.5 76.0 60.9

1957 57.2 89.1 65.0 49.5 86.5 55.5 76.1 64.1

1958 56.9 80.1 62.8 45.2 79.4 56.4 72.0 71.1

1959 59.6 88.7 66.9 50.5 84.6 56.9 75.5 67.2

1960 60.0 87.9 67.0 50.7 84.4 57.6 75.6 68.3

1961 61.6 86.9 68.0 50.7 82.3 58.3 74.5 70.9

1962 64.3 92.9 71.5 55.1 85.6 59.2 77.0 69.2

1963 68.9 98.3 76.3 59.6 86.5 60.7 78.1 70.2

1964 72.3 102.3 79.8 63.9 88.4 62.4 80.0 70.6

1965 74.6 107.3 82.8 69.8 93.6 65.1 84.3 69.5

1966 75.4 108.6 83.7 75.1 99.7 69.2 89.7 69.4

1967 75.3 101.1 81.8 75.0 99.5 74.2 91.7 74.5

1968 78.0 101.1 83.8 79.1 101.4 78.2 94.4 77 .1

1969 79.3 100.5 84.6 81.7 103.0 81.3 96.6 78.9

1970 79.2 91.8 82.3 77 .0 97.3 83.9 93.5 86.2

1971 84.0 92.3 86.0 78.7 93.7 85.2 91.5 90.9

1972 88.2 99.8 91.1 86.2 97.8 86.4 94.6 88.4

1973 93.0 108.2 96.8 95.9 103.1 88.6 99.0 85.9

1974 90.8 99.6 93.1 91.9 101.2 92.2 98.7 91.1

1975 93.4 89.4 92.2 85.4 91.4 95.5 92.6 104.5

1976 97.6 96.1 97.1 93.6 95.9 97.4 96.3 101.6

1977 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

1978 100.9 101.5 101.1 105.3 104.4 103.8 104.2 99.4

1979 101.6 99.5 101.0 108.2 106.5 108.8 107.1 102.1

1980 101.7 90.7 98.8 103.5 101.7 114.1 104.8 112.2

1981 104.9 89.9 100.8 106.1 101.1 118.0 1Q5.2 116,7

1982 107.1 82.9 100.3 99.3 92.7 119.8 99.0 129.2

1983 111.6 87.6 104.9 104.4 93.5 119.2 99.5 127.5

1984 115.6 96.0 110.4 115.3 99.8 120.2 104.5 120.4

See footnotes followi ng table 6. Octobe r 3, 1985

SOURCE: Bureau of Labor Statistics
-9-

Table 4. Private business sector: productivity and related measures, 1948-84 Jj

Productivity Inputs

Year Output per Output per Multifactor Output Hours of Capital Combined units Capital

hour of all unit of productivity all persons services of 1abor and services

, persons capital £I 3/ i/ Y capital inputs §J per hour

Percent change

1949 1.6 -5.6 -1.1 -1.9 -3.4 3.9 -0.8 7.6

1950 , 8.2 5.5 7.2 9.4 1.2 3.7 2.1 2.5

1951 2.9 1.5 2.4 5.9 2.9 4.4 3.5 1.4

1952 3.4 -0.8 1.8 3.3 0.0 4.1 1.5 4.2

1953 3.3 1.3 2.6 4.4 1.1 3.1 1.8 2.0

1954 1.7 -4.3 -0.4 -i.8 -3.4 2.7 -1.4 6.3

1955 4.1 4.8 4.4 8.1 3.8 3.1 3.6 -0.7

1956 1.1 -0.9 0.3 2.6 1.5 3.6 2.3 2.0

1957 2.6 -2.0 0.9 1.0 -1.5 3.1 0.1 4.7

1958 3.1 -3.7 0.7 -1.6 -4.6 2.2 -2.3 7.1

1959 3.3 5.3 4.0 7.3 3.9 1.9 3.2 -1.9

1960 1.5 -0.7 0.7 1.6 0.1 2.3 0.9 2.2

1961 3.4 -0.4 2.0 1.7 -1.6 2.1 -0.3 3.8

1962 3.9 3.2 3.6 5.6 1.6 2.3 1.9 0.6

1963 3.8 1.4 2.9 4.4 0.6 2.9 1.4 2.4

1964 4.3 2.5 3.6 6.0 1.6 3.4 2.3 1.7

1965 3.6 2.4 3.1 6.8 3.1 4.3 3.6 1.1

1966 3.1 0.2 1.9 5.5 2.4 5.3 3.5 2.8

1967 2.3 -2.9 0.3 2.2 -0.1 5.3 1.9 5.4

1968 3.4 0.9 2.4 5.2 1.7 4.6 2.7 2.9

1969 0.2 -1.7 -0.5 2.9 2.7 4.7 3.4 2.0

1970 0.9 -5.0 -1.2 -0.8 -1.7 4.3 0.3 6.2

1971 3.6 -0.5 2.2 3.0 -0.6 3.5 0.8 4.1

1972 3.5 3.0 3.3 6.7 3.1 3.6 3.3 0.5

1973 2.6 2.0 2.4 6.6 4.0 4.6 4.2 0.6

1974 ..2.4 ..6.3 -3.8 -2.1 0.4 4.6 1.8 4.2

1975 2.2 ..4.7 -0.2 -2.1 -4.2 2.7 -1.9 7.3

1976 3.3 4.5 3.7 6.5 3.1 1.9 2.6 -1.2

1977 2.4 4.0 3.0 6.7 4.2 2.6 3.6 -1.6

'1978 0.5 1.8 1.0 5.5 5.0 3.6 4.5 -1.3

1979 -1.2 ..1.4 -1.3 2.2 3.5 3.7 3.6 0.2

1980 ..0.6 -4.8 -2.0 -1.3 -0.8 3.6 0.7 4.4

1981 1.9 -1.5 0.7 2.6 0.7 4.2 1.9 3.5

1982 0.3 -4.8 -1.6 -2.6 -2.9 2.3 -1.1 5.4

1983 2.8 3.1 2.9 4.5 1.6 1.4 1.5 -0.3

1984 3.3 5.5 4.1 8.9 5.5 3.3 4.7 -2.1

See footnotes following table 6. October 3, 1985

SOURCE:Bureau of Labor Statistics
-10-

Table 5. Private nonfarm business sector: productivity and related measures, 1948-84 11

Productivity Inputs

Year Output per Output per Multifactor Output Hours of Capi tal Combi ned uni ts Cap ita1 '

hour of all unit of productivity all persons services of 1abor and services

persons capi tal 2/ }j 4/ Y capi tal inputs §j per hour

,-

Percent change

1949 2.2 -5.3 -0.6 -1.9 -4.0 3.6 -1.3 7.9

1950 6.3 6.0 6.2 9.7 3.2 3.5 3.3 0.3

1951 1.9 2.2 2.0 6.6 4.6 4.2 4.5 -0.4

1952 2.5 -0.8 1.3 3.4 0.9 4.2 2.1 3.3

1953 1.7 1.2 1.5 4.4 2.6 3.2 2.8 0.5

1954 1.5 -4.7 -0.6 -2.0 -3.5 2.8 -1.4 6.5

1955 4.0 5.0 4.4 8.4 4.2 3.2 3.8 -0.9

1956 0.3 -0.8 -0.1 2.8 2.5 3.7 3.0 1.1

1957 1.8 -2.0 0.4 1.2 -0.6 3.3 0.8 3.8

1958 2.4 -4.1 0.0 -1.9 -4.3 2.3 -2.0 6.8

1959 3.5 5.9 4.3 8.0 4.4 2.0 3.5 -2.3

1960 0.8 -1.1 0.1 1.4 0.6 2.5 1.3 1.9

1961 3.0 -0.4 1.7 1.8 -1.2 2.2 0.1 3.4

1962 3.6 3.4 3.5 5.9 2.2 2.4 2.3 0.2

1963 3.3 1.4 2.5 4.4 1.1 3.0 1.8 1.9

1964 3.9 2.8 3.5 6.4 2.4 3.5 2.8 1.1

1965 3.1 2.5 2.9 7.0 3.7 4.4 4.0 0.7

1966 2.4 0.5 1.7 5.9 3.4 5.4 4.2 1.9

1967 1.9 -3.1 0.0 2.1 0.2 5.4 2.1 5.2

1968 3.4 0.7 2.4 5.4 2.0 4.7 3.0 2.7

1969 -0.3 -1.8 -0.8 2.9 3.2 4.8 3.8 1.5

1970 0.4 -5.3 -1.6 -1.1 -1.5 4.5 0.5 6.0

1971 3.4 -0.6 2.0 2.9 -0.4 3.6 0.9 4.0

1972 3.7 3.2 3.5 7.0 3.2 3.7 3.4 0.5

1973 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 1.8 4.3

1975 2.0 -5.0 -0.5 -2.4 -4.3 2.8 -1.9 7.4

1976 3.2 4.9 3.8 6.9 3.5 1.9 3.0 -1.6

1977 2.2 4.0 2.9 6.8 4.5 2.7 3.8 -1.8

1978 0.6 1.9 1.0 5.7 5.1 3.7 4.6 -1.3

1979 -1.6 -1.8 -1.7 2.2 3.8 4.0 3.9 0.2

1980 -0.8 -4.8 -2.2 -1.5 -0.7 3.5 0.7 4.2

1981 1.5 -2.1 0.2 2.2 0.7 4.3 1.9 3.6

1982 0.3 -4.9 -1.5 -2.6 -2.9 2.4 -1.1 5.4

1983 3.6 3.7 3.6 5.1 1.5 1.4 1.5 -0.1

1984 2.8 5.1 3.6 8.7 5.8 3.4 4.9 -2.2

See footnotes fo11owi ng table 6. October 3, 1985

SOURCE: Bureau of Labor Statistics
-11-

Table 6. Manufacturing business sector: productivity and related measures, 1948-84 .!I

Productivity Inputs

Year Output per Output per Multifactor Output Hours of Capital Combined units C apital

hour of all unit of productivity all persons services of 1abor and services

.persons capi tal y '}j il 51 capital inputs y per hour

Percent change

1949 4.0 -8.8 -0.4 -5.2 -8.9 4.0 -4.9 14.1

1950 5.4 10.4 7.1 13.9 8.0 3.1 6.3 -4.5

1951 3.4 4.9 3.9 11.4 7.7 6.2 7.2 -1.4

1952 1.8 -3.8 0.0 3.3 1.4 7.3 3.3 5.8

1953 1.7 3.1 2.1 6.9 5.1 3.7 4.7 -1.4

1954 1.6 -9.6 -2.0 -7.2 -8.6 2.7 -5.3 12.3

1955 5.0 7.5 5.8 10.8 5.5 3.1 4.7 -2.3

1956 -0.7 -3.4 -1.6 0.7 1.5 4.3 2.4 2.8

1957 2.1 -3..2 0.4 0.5 -1.5 3.8 0.0 5.4

1958 -0.4 -10.2 -3.4 -8.6 -8.2 1.7 -5.3 10.9

1959 4.8 10.8 6.6 11.7 6.6 0.8 4.8 -5.5

1960 0.7 -1.0 0.1 0.3 -0.3 1.3 0.2 1.7

1961 2.7 -1.1 1.5 0.1 -2.5 1.2 -1.4 3.8

1962 4.3 6.9 5.1 8.6 4.1 1.6 3.3 -2.4

1963 7.2 5.7 6.7 8.3 1.0 2.4 1.5 1.4

1964 4.8 4.2 4.6 7.1 2.2 2.9 2.4 0.6

1965 3.1 4.8 3.7 9.2 5.9 4.2 5.3 -1.6

1966 1.1 1.3 1.2 7.7 6.5 6.3 6.5 -0.2

1967 0.0 -7.0 -2.3 -0.2 -0.2 7.3 2.1 7.5

1968 3.5 0.0 2.4 5.5 1.9 5.4 3.0 3.5

1969 1.7 -0.5 1.0 3.4 1.6 3.9 2.3 2.3

1970 -0.2 -8.7 -2.7 -5.8 -5.6 3.2 -3.2 9.3

1971 6.1 0.6 4.5 2.2 -3.7 1.6 -2.2 5.5

1972 5.0 8.1 6.0 9.6 4.3 1.4 3.4 -2.8

1973 5.4 8.4 6.3 11.2 5.5 2.6 4.6 -2.8

1974 -2.4 -7.9 -3.9 -4.2 -1.9 4.1 -0.3 6.1

1975 2.9 -10.3 -0.9 -7.1 -9.7 3.5 -6.2 14.6

1976 4.5 7.4 5.3 9.6 4.9 2.0 4.1 -2.8

1977 2.5 4.1 2.9 6.9 4.3 2.7 3.8 -1.6

1978 0.9 1.5 1.1 5.3 4.4 3.8 4.2 -0.6

1979 0.7 -2.0 -0.1 2.7 2.1 4.8 2.8 2.7

1980 0.2 -8.8 -2.2 -4.4 -4.5 4.9 -2.2 9.9

1981 3.1 -0.9 2.1 2.5 -0.6 3.4 0.4 4.1

1982 2.1 -7.8 -0.5 -6.4 -8.3 1.5 -5.9 10.7

1983 4.3 5.7 4.7 5.2 0.9 -0.5 0.5 -1.3

1984 3.5 9.6 5.2 10.5 6.7 0.8 5.0 -5.5

See footnotes following table 6. October 3, 1985

SOURCE: Bureau of labor Statistics
-12-

Footnotes, Tables 1-6

SOURCE: Output data from Bureau of Economic Analysis (BEA), U.S.

Department of Commerce, and the Federal Reserve Board. Compensation and hours data from the Bureau of Labor Statistics, U.S.

Department of Labor, and BEA. Capital measures are based on data

supplied by BEA and U.S. Department of Agriculture.

(1) The private business sector includes all of Gross National Product

except the rest-of-world sector, the rental value of owneroccupied real estate, the output arising in nonprofit organiza:

tions, the output of paid employees of private households, government, and the statistical discrepancy in preparing the national

income accounts. The private nonfarm business $ector 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, in constant

dollars.

(4) Paid hours of all employees, plus the hours of proprietors and

unpaid family workers engaged in the sector.

(5) A measure 'of the flow of capital services used in the sector.

(6) Hours of all persons combined with capital input, using labor and

capital shares of output as weights.
Publications are available from the Superintendent of Documents, U.S.

Government Printing Office, Washington, D.C. 20402, or the Bureau of Labor

Statistics Chicago Regional Office, 9th Floor, Federal Office Building,

230 South Dearborn Street, Chicago, III. 60604.

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term trends in

manufacturing output.

employment. productivity.

related economic indicators .

and. wherever possible.

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indexes of output per

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