Bureau of Labor Statistics

Historical, technical contact:

Kent Kunze (202) 523-9261

Media contact: (202) 523-1913

United States ~~

Department ~

of Labor

Washington, D.C. 20212

USDL 86-402

For Release: 10:00 AM EDT

Thursday, October 2,1986

MULTIFACTOR PRODUCTIVITY MEASURES, 1985

Private Business, Private Nonfarm Business, and

Manufacturing

The Bureau of Labor Statistics of the U.S. Department of Labor

today reported multifactor productivity measures--output per unit of

combined labor and capital--for 1985. The annual rates of multifactor

productivity change in 1985 were:

plus 0.3 percent in private business,

minus 0.2 percent in private nonfarm business, and

plus 3.6 percent in manufacturing.

The 1985 annual changes are sumarized in tahle A and detailed measures

appear in tables 1 through 6.

Change in multifactor productivity measures the difference

between the growth in output (goods and services produced) and the

growth in labor and capita 1 engaged in produc ing that output. It

reflects the change in output due to factors other than the change in

capital and labor inputs. Such factors include new technology,

economies of scale, changes in the composition of labor (education and

training), capacity utilization rates, and organization of production.

Private business

Multifactor productivity increased 0.3 percent in 1985 in

private husiness compared with a 3.1 percent rise in 1984 (table 4).

The 1985 increase reflected a 3.3 percent increase in output and a 2.9

percent increase in the comb ined inputs of hours of all persons and

capital services. Separately, hours increased 2.2 percent, and

capital services increased 4.2 percent.

Labor productivity (output per hour of all persons)increased 1.1

percent in 1985, compared with a 2.3 percent increase in 1984.
-2-

Table A. Prorluctivity indexes and relaterl measures

Percent change from 1984 to 1985

Capital services pe

all persons (cap

Output per hour

Output per unit

~1ultifactor prod

Hours of all per

Capital services

Combined units 0

capital input

Item

Productivity

Output

Inputs

Private

Private nonfarm Manubusinessl businessl facturingl

of all persons

· · ·

1.1 0.5 4.4

of capital services

·

-0.9 -1.3 1.8

uctivity2

· · · · · ·

0.3 -0.2 3.6

.

· · · · · · · · · ·

3.3 3.0 3.8

sons

· · · · · · · ·

2.2 2.6 -0.5

· · · · · · · · · ·

4.2 4.4 2.0

f labor and

s3

· · · · · · · · · ·

2.9 3.2 0.2

r hour of

ital-labor ratio).

· ·

2.0 1.8 2.6

1 Excludes government enterprises.

2 Output per unit of combined labor and capital input.

3 Hours af all persons combined with capital service input index, weighted

hy lahor and capital shares.
-3-

Capital productivity (output per unit of capital services) fell

0.9 percent in 1985 compared with a 4.n percent increase in 1984. The

ratio of capital services to hours (capital-labor ratio) increased 2.0

percent in private business in 1985 after falling 2.2 percent in the

previous year.

Private nonfarm business

Multifactor productivity fell 0.2 percent in 1985 in private

non farM bus iness compared wi th a 2.7 percent increa se in 1984 (tabIe

5) • Thi s was the first decrease since 1982. The 1985 decrease

resulted from a 3.0 percent increase in output along with a 3.2

percent increase in the combined inputs of capital services and hours

of all persons. Capital services increased 4.4 percent in 1985, which

was the largest increase since 1980. Hours increased 2.6 percent in

private nonfarm business in 1985.

The increase in labor product ivity wa sO. 5 percent in private

nonfarm business in 1985 as opposed to an increase of 1.8 percent in

1984.

Capital productivity decreased 1.3 percent in 1985 compared with

a 4.2 percent increase in 1984. On the other hand, the capital-lahor

ratio increased 1.8 percent, following a decline in the previous

year.

Manufacturing

Multifactor productivity growth in manufacturing--which is

approximately 25 percent of private husiness output--showed a strong

increase of 3.6 percent in 1985. Thi s increase resulted from a 3.8

percent increase in output and only a 0.2 percent increase in the

eomhined inputs of hours and capital services. The increase in

comhined inputs resulted from a decrease in hours of 0.5 percent and

an increase in capital services of 2.0 percent in 1985. This was the

first decrease in hours since 1982 when they fell 8.1 percent (tahle

6) •

Labor productivity increased 4.4 percent in manufacturing

compared with a 4.1 percent increase in 1984. For manufacturing, this

was the fifth consecutive annual increase over 2 percent.
-4-

Capital product.ivity increased in manufacturing 1.8 percent in

L4A5 co~pared with an 8.6 percent increase in 1QS4. The capital-lahor

re) t io i ncrea sed 2.6 percent as opposed to a 4.2 percent decrea se in

lq84. This was the first increase since 1982 when it gained 11.4

percent.

Long-term trends

Over the entire period 1948-85, multi factor productivity grew at

an annual rate of 1.4 percent in private husiness (tahle R). For

privatp nonfarm business, the average annual growth rate of

multifactor productivity was 1.1 percent over the same period and, for

~anufacturing, it was 1.R percent.

From 1948 to 1973, multifactor productivity grew at an average

ra te of 2.0 percent in pr i vate bus iness, 1.7 percent in private

non farm bus iness, and 2.0 percent in manufacturing. For the same

per iod, output per hour grew at an annual rate of 2.9 percent for

private husiness, 2.5 percent for private nonfarm business, ann 2.8

percent for manufacturing. The difference hetween each set of growth

ra tes is equal to a proport ion of the change in the capita l-lahor

ratio (capital services per hour) and is referred to in this release

as the contr ib ut ion of capita 1 intens it y. Thi s component accounted

for approximately one-third of the growth in lahor productivity in all

threp sectors from 1948 to 1973.

The magnitude of the post-1973 slowdown in productivity growth

is shown in tab Ie B. Multi factor product i vi ty growth in pri vate

husiness declined almost 2 percentage points from the pre-1973 rate to

0.2 percent per year, and in private nonfarm husiness it was zero.

Tbe contribution of capital intensity accounted for most of the growth

in output per hour for these two sectors during the latter period.

Only in manufacturing did multifactor productivity growth remain

strong between 1973 and 1985, with an annual growth rate of 1.3

percent.
-5-

TahIe B. Compounoannual ri'ltes of growth in output per hour of all persons,

the contrihution of capital intensity, ann JTlultifactor productivity, ny major

sector, 1948 to 1985.

~lult i facto

r1ult if.=tcto

Private non

Private nus

1948 - 1948 - 1973 - 1984 -

1985 1973 1985 1985

. 1

Iness

hour of all ~rsons 2.3 2.9 0.9 1.1

Ion of capital .. 2 mten~:aty 0.9 0.9 0.7 0.8

r:- proouct i vit y3 1.4 2.0 0.2 0.3

fann husinessl

hour of all persons 1.9 2.5 0.7 0.5

ion of capital intensity2 0.8 0.8 0.7 0.7

r productivity3 1.1 1.7 0.0 -0.2

n91

hour of all ~rsons 2.6 2.8 2.2 4.4

ion of capital intensity2 0.8 0.8 0.9 0.8

or product i vit y3 1.8 2.0 1.3 3.6

.._-

Excludes government enterprises.

r1ult ifact

Contr i\}ut

Contrihut

Contrihut

r1pasure

1

r1anufacturi

Output per

Output per

Output per

2 Change in capital services ~r hour times capital's share of

current oollar output.

3 Output per unit of corrhinerl lahor and capital inputs.

Source: Tahles 1-3
-6-

Su~~ary of Methods

The following note hriefly descrihes the major data sources and

the procedures used in deriving RLS ~ultifactor productivity indexes.

More detailed information on the methods, limitations, and data

sources are in RLS Rulletin 2178, "Trends in Multifactor Productivity

1948-81."

The multifactor productivity indexes are derived hy dividing an

output index hy 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 hy the

Rureau of Economic Analysis of the u.s. Department of Co~merce.

The capita 1 input series measures the serv ices der ived fro~ the

stoc k of phys ica1 asset s. The asset s included are fixed h us iness

equipment, structures, inventories, and land. Structures include

nonresidential structures and residential capital which is rented out

hy profitJTlaking firms or persons. Financial assets are excluded as

are owner-occupied residential structures. The aggregate capital

measures axe ohtained hy weighting each asset type lJy its respective

rental price.

The lahor and capital components of the input indexes are

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

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

IS averaged with the preceding year's value.

Data are presented for the private lJusiness, private nonfar~

h us iness, and ~anufact ur ing sectors. The pr ivate h us iness sector,

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

includes all activities in the econo~y with the exception of general

government, government enterprises, the rest-of-the-world sector,

owner-occupied housing, nonprofit institutions, and private household

e~ployees and the statistical discrepancy. The private nonfarm

husiness sector also excludes farms hut includes agricultural

serVIces.

These multifactor productivity measures descrihe the relationship

h atw~~en output in rea 1 terms and the pa id lahor time and capi tal

services involved in its production. They do not JTleasurethe specific

contrihutions of labor, capital, or any other factor of production.

Rather, they reflect the joint effects of many influences, including

changes in technology: level of output: utilization of capacity,

energy, and JTlaterials: the organization of production: ~anagerial

skill: and the characteristics and effort of the work force.
Table 1. Private Business Sector: Productivity and Related Measures, 1948-85 (lJ

Productivity Inputs

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

hour of all lD'lit of Iroductivity all persons of liiJor and rour of

persons capital (2] (3] (4] (5] capital inputs [6] all persons

Indexes 1977=100

1948 46.5 98.8 60.8 38.1 81.8 38.5 62.6 47.1

1949 47.1 94.4 60.3 37.2 79.0 39.4 61.7 49.8

1950 51.1 100.1 64.9 40.8 79.9 40.8 62.9 51.0

1951 53.2 102.4 67.1 43.7 82.2 42.7 65.1 52.0

1952 54.9 102.5 68.5 45.1 82.1 44.0 65.8 53.6

1953 56.9 104.5 70.6 47.2 82.9 45.2 66.9 54.5

1954 57.9 100.7 70.5 46.4 80.1 46.0 65.8 57.5

1955 59.7 104.3 72.8 49.6 83.1 47.6 68.1 57.2

1956 60.5 103.5 73.2 51.1 84.4 49.3 69.7 58.5

1957 ' 62.1 101.7 74.1 51.6 83.1 50.7 69.7 61.1

1958 64.0 98.1 74.6 50.6 79.1 51.6 67.9 65.3

1959 66.2 103.1 77.6 54.3 82.1 52.7 70.1 64.2

1960 67.3 102.4 78.2 55.3 82.2 54.0 70.7 65.7

1961 69.7 102.2 80.0 56.3 80.8 55.1 70.5 68.2

1962 72.3 104.8 82.5 59.3 82.1 56.6 71.9 69.0

1963 75.2 106.5 85.1 62.0 82.5 58.3 72.9 70.6

1964 78.4 109.3 88.3 65.8 83.8 60.2 74.5 71.8

1965 80.8 111.3 90.6 69.9 86.5 62.8 77.1 72.6

1966 82.9 111.3 92.1 73.5 88.6 66.0 79.8 74.5

1967 85.2 108.8 92.9 75.4 88.5 69.3 81.2 78.3

1968 87.6 109.0 94.6 78.8 90.0 72.3 83.3 80.4

1969 87.7 107.1 94.1 81.0 92.4 75.6 86.1 81.8

1970 88.4 102.0 92.9 80.2 90.8 78.7 86.3 86.7

1971 91.3 101.2 94.7 82.4 90.3 81.5 87.1 90.2

1972 94.0 103.8 97.4 87.7 93.2 84.4 90.0 90.6

1973 95.9 105.3 99.1 93.0 96.9 88.3 93.8 91.1

1974 93.8 98.8 95.6 91.2 97.2 92.4 95.5 95.0

1975 95.7 93.8 95.0 89.3 93.2 95.1 93.9 102.0

1976 98.4 97.2 98.0 94.5 96.1 97.2 96.5 101.2

1977 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

1978 100.8 102.0 101.2 105.8 105.0 103.8 104.5 98.8

1979 99.5 99.fl 99.7 107.9 108.4 108.0 10fl.2 99.7

1980 99.2 94.2 97.4 106.6 107.5 113.1 109.4 105.3

1981 100.6 92.4 97.7 10fl.9 10fl.2 117.8 111.5 108.8

1982 100.3 86.6 95.2 105.4 105.2 121.7 110.7 115.7

1983 103.0 88.3 97.6 109.9 106.7 124.4 112.6 116.7

1984 105.4 92.4 100.6 118.9 112.8 128.7 118.1 114.1

1985 106.5 91.5 101.0 122.8 115.3 134.1 121.6 116.3

See Footnotes Following Table 6. O:::tcber 2, 1986

SOURCE:Bureau of Lahor Statistics
Table 2. Private Nonfarm Business Sector: Productivity am Related Measures, 1948-85 [lJ

Productivity Inputs

Year Outplt per Output per Mu1tifactor Output Hours of Capital COIbined mits Capital per

hour of all lD1it of productivity all persons of labor am hour of

persons capital (2) (3) [4J [5] capital inputs [6] all persons

Indexes 1977=100

1948 52.6 99.4 65.8 36.9 70.2 37.2 56.1 53.0

1949 53.6 95.2 65.6 36.1 67.3 37.9 55.0 56.3

1950 57.1 101.3 69.9 39.7 69.4 39.2 56.8 56.4

1951 58.9 104.2 72.0 42.8 72.6 41.0 59.4 56.5

1952 60.3 104.4 73.1 44.1 73.2 42.3 60.4 57.7

1953 61.6 106.3 74.6 46.2 75.1 43.5 62.0 57.9

1954 62.5 102.2 74.4 45.3 72.4 44.3 60.9 61.2

1955 64.4 105.9 76.7 48.6 75.4 45.9 63.3 60.8

1956 64.8 105~1 76.8 50.1 77.3 47.7 65.2 61.7

1957 66.1 103.4 77 .4 50.8 76.8 49.1 65.6 63.9

1958 ·67.7 99.4 77.5 49.7 73.4 50.0 64.1 68.1

1959 69.9 104.9 80.7 53.6 76.6 51.1 66.4 66.7

1960 70.7 103.7 80.9 54.4 77.0 52.5 67.3 68.2

1961 73.0 103.5 82.6 55.5 76.1 53.6 67.2 70.5

1962 75.4 106.2 85.1 58.6 77.7 55.2 68.9 71.0

1963 78.1 107.9 87.5 61.3 78.5 56.8 70.1 72.4

1964 81.2 111.0 90.6 65.2 80.3 58.8 72.0 73.2

1965 83.3 113.0 92.7 69.4 83.3 61.4 74.9 73.7

1966 85.0 113.2 93.9 73.3 A6.3 fA.7 78.0 75.1

1967 86.9 110.3 94.4 75.1 86.4 68.1 . 79.6 78.8

1968 89.3 nO.5 96.1 78.7 88.1 71.2 81.9 80.8

1969 88.9 108.4 95.1 80.8 90.9 74.6 84.9 82.0

1970 89.2 102.8 93.7 79.9 89.6 77.7 85.3 86.8

1971 91.9 101.9 95.2 82.1 89.3 80.6 86.2 90.3

1972 94.7 194•5 98.0 87.4 92.3 83.6 89.3 90.6

1973 96.4 106.0 99.6 92.9 96.3 87.6 93.3 91.0

1974 94.3 99.2 96.0 91.1 96.6 91.9 95.0 95.1

19)5 96.0 93.8 95.3 88.9 92.6 94.8 93.4 102.3

1976 98.5 97.3 98.1 94.4 95.8 97.0 96.2 101.3

1977 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

1978 100.8 101.9 101.2 106.0 105.1 104.0 104.7 98.9

1979 99.2 99.0 99.1 107.9 108.8 109.0 108.9 100.1

1980 98.7 93.4 96.9 106.6 108.0 114.1 110.0 105.6

1981 99.6 91.1 96.7 108.4 108.8 119.0 112.2 109.4

1982 99.1 85.1 94.1 104.8 105.7 123.2 111.4 116.5

1983 102.4 87.3 97.0 110.0 ]07.4 126.1 113.5 117.4

1984 104.3 90.9 99.6 118.9 114.0 130.8 119.4 114.7

1985 104.8 89.7 99.4 122.5 116.9 136.6 123.3 116.8

---------------------------------------------------------------------------------------------------------

See Footnotes Following Table 6. Clctcher 2, 1986

SOURCE: Bureau of Lahor Statistics
·'0.

Table 3. Manufacturing Sector: Productivity and Related Measures, 1948-85

Productivity Inputs

)ear Output per Output per Mu1tifactor Output Hours of Capi tal Calbined U'Iits Capital per'

00ur of all \D1it of productivity all persons of labor and hour of

persons capital (2] [3] (4] [5] capital inputs [6] all persons

Indexes 1977=100

1948 46.6 105.0 59.3 37.0 79.4 35.2 62.3 44.4

1949 48.5 98.5 59.7 35.1 72.4 35.6 511.8 49.2

1950 51.1 109.0 64.0 40.0 78.2 36.7 62.5 46.9

1951 53.1 112.6 66.3 44.7 84.2 39.7 67.4 47.2

1952 54.1 111.4 67.0 46.2 85.4 41.5 69.1 48.6

1953 55.3 115.2 68.6 49.6 89.8 43.0 72.3 48.0

1954 56.0 106.3 67.6 46.0 82.1 43.3 68.0 52.7

1955 58.7 113.2 71.2 50.8 86.6 44.9 71.4 51.8

1956 58.3 108.5 69.9 51.3 87.9 47.2 73.3 53.8

1957 59.6 105.5 70.4 51.5 86.5 48.9 73.3 56.5

1958 59.3 95.3 68.0 47.0 79.4 49.3 69.2 62.2

1959 61.9 104.7 72.1 52.4 84.6 50.1 72.6 59.1

1960 62.2 102.5 71.9 52.5 84.4 51.2 73.0 60.7

1961 64.0 101.2 73.0 52.6 82.3 52.0 72.0 63.2

1962 66.7 106.6 76.4 57.1 85.6 53.6 74.8 62.6

1963 71.2 111.8 81.1 61.6 86.5 55.1 75.9 63.7

1964 74.6 116.0 84.7 66.0 88.4 56.9 77.9 64.3

1965 76.6 119.8 87.1 71.7 93.6 59.9 82.3 64.0

1966 77.4 119.8 87.7 77.2 99.7 64.5 88.0 64.6

1967 77.4 110.6 85 .•5 77.0 99.5 69.6 90.1 70.0

1968 79.8 110.3 ·87.3 80.9 101. 4 73.4 92.7 72.4

1969 80.8 108.3 87.5 83.2 103.0 76.8 95.1 74.6

1970 80.8 98.6 85.2 78.6 97.3 79.7 92.2 82.0

1971 85.3 97.9 88.4 79.9 93.7 81.6 90.4 87.1

1972 89.0 104.2 92.8 87.0 97.8 83.5 93.8 85.4

1973 93.4 111.4 97.9 96.3 103.1 86.4 98.4 83.R

1974 90.6 101.2 93.3 91.7 101.2 90.6 98.3 89.5

1975 92.9 90.1 92.0 84.9 91.4 94.2 92.2 103.1

1976 97.1 96.2 96.8 93.1 95.9 96.7 96.1 100.9

1977 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

1978. 101.5 102.1 101.7 106.0 104.4 103.7 104.2 99.4

1979 101.4 99.7 101.0 108.1 106.5 108.4 107.0 101.7

1980 101.4 91.2 98.7 103.2 101. 7 113.1 104.5 111.2

1981 103.6 89.2 99.8 104.8 101.1 117.5 105.0 116.2

1982 105.9 81.8 99.2 98.4 92.9 120.3 99.2 129.4

1983 112.0 86.9 105.1 104.7 93.5 120.6 99.7 129.0

]984 116.6 94.4 110.7 116.0 99.5 122.9 104.8 123.fi

1985 121.7 96.0 114.7 120.4 98.9 125.4 105.0 126.7

See Footnotes Following Table 6. Octcber 2, 1986

SOURCE: Bureau of Lahor Statistics
Table 4. Private Business Sector: Productivity and Related Measures 1949-85 (1)

Productivity Inputs

~r Output per Output per Multifactor Output Hours of Capital Calt>ined lIlits Capital per

hour of all unit of productivity all persons of lcbor and hour of

persons capital (2) (3) (4) (5) capital inputs [6] all persons

Percent Change

1949 1.1 -4.4 -0.9 -2.4 -3.5 2.1 -1.5 5.8

1950 8.6 6.0 7.6 9.8 1.1 3.6 2.0 2.4

1951 4.1 2.3 3.4 7.1 2.9 4.7 3.6 1.8

1952 3.2 0.1 2.1 3.2 0.0 3.1 1.1 3.1

1953 3.7 2.0 3.1 4.7 1.0 2.7 1.6 1.7

1954 1.7 -3.6 -0.2 -1.8 -3.4 1.9 -1.7 5.5

1955 3.1 3.5 3.2 7.0 3.8 3.3 3.6 -0.4

1956 1.4 -0.8 0.6 2.9 1.5 3.7 2.3 2.2

1957 2.7 -1.7 1.1 1.1 -1.6 2.8 0.0 4.5

1958 3.0 -3.6 0.7 -1.9 -4.8 1.7 -2.6 6.9

1959 3.4 5.2 4.0 7.3 3.9 2.1 3.2 -1.7

1960 1.7 -0.8 0.8 1.7 0.1 2.5 0.9 2.5

1961 3.6 -0.1 2.3 1.9 -1.7 2.0 -0.4 3.7

1962 3.6 2.5 3.2 5.3 1.6 2.7 2.0 1.1

1963 4.0 1.6 3.2 4.6 0.5 2.9 1.4 2.4

1964 4.3 2.6 3.7 6.0 1.6 3.3 2.2 1.7

1965 3.0 1.9 2.6 6.3 3.2 4.3 3.6 1.1

1966 2.7 0.0 1.7 5.2 2.4 5.2 3.4 2.7

1967 2.7 -2.3 0.9 2.7 -0.1 5.0 1.8 5.1

1968 2.8 0.1 1.8 4.5 1.6 4.3 2.6 2.7

1969 0.1 -1.7 -0.6 2.7 2.6 4.5 3.3 1.8

1970 0.8 -4.8 -1.2 -0.9 -1.7 4.1 0.2 5.9

1971 3.3 -0.8 1.8 2.7 -0.5 3.5 0.9 4.1

1972 3.0 2.6 2.9 6.4 3.3 3.6 3.4 0.4

1973 2.0 1.4 1.8 6.0 4.0 4.6 4.2 0.6

1974 -2.1 -6.2 -3.6 -1.9 0.3 4.6 1.8 4.4

1975 2.0 -5.0 -0.5 -2.2 -4.1 3.0 -1.6 7.4

1976 2.8 3.6 3.1 5.9 3.0 2.2 2.7 -0.8

1977 1.6 2.9 2.1 5.8 4.1 2.9 3.7 -1.2

1978 0.8 2.0 1.2 5.8 5.0 3.8 4.5 -1.2

'979 -1.2 -2.1 -1.5 2.0 3.2 4.1 3.6 0.9

1980 -0.4 -5.7 -2.2 -1.2 -0.8 4.7 1.1 5.6

1981 1.4 -1.9 0.3 2.2 0.7 4.1 1.9 3.4

1982 -0.3 -6.3 -2.5 -3.1 -2.8 3.3 -0.7 6.3

1983 2.7 1.9 2.5 4.2 1.4 2.2 1.7 0.8

1984 2.3 4.6 3.1 8.2 5.8 3.4 4.9 -2.2

1985 1.1 -0.9 0.3 3.3 2.2 4.2 2.9 2.0

See Footnotes Following Tahle 6. O::tcher 2, 1986

SCURCE: Bureau of Lahor Statistics
Table 5. Private NonfarmBusiness Sector: Productivity and Related Measures, 1949-85 [1]

Productivity Inputs

~r ~put per ~put per Hultifactor <Xrtput Hours of Capital Ccrt>ined lIlits Capital per

hour of all unit of productivity all persons of l.ctlor and hour of

persons capital [2] [3] [4] . [5] capital inputs [6] all persons

Percent Change

1949 1.8 -4.2 -0.4 -2.3 -4.1 1.9 -2.0 6.2

1950 6.6 6.3 6.5 9.9 3.1 3.4 3.2 0.2

1951 3.1 2.9 3.0 7.8 4.6 4.8 4.7 0.2

1952 2.3 0.1 1.5 3.2 0.9 3.1 1.7 2.2

1953 2.2 1.9 2.1 4.7 2.5 2.8 2.6 0.3

1954 1.6 -3.9 -0.3 -2.0 -3.5 1.9 -1.7 5.6

1955 3.0 3.6 3.2 7.2 4.1 3.5 3.9 -0.6

1956 0.6 -0.8 0.1 3.1 2.5 3.9 3.0 1.4

1957 1.9 -1.6 0.7 1.3 -0.6 3.0 0.6 3.6

1958 2.5 -3.8 0.2 -2.1 -4.5 1.8 -2.3 6.6

1959 3.3 5.5 4.0 7.8 4.4 2.2 3.6 -2.1

1960 1.1 -1.1 0.3 1.6 0.5 2.7 1.3 2.2

1961 3.2 -0.2 2.0 2.0 -1.2 2.2 0.0 3.4

1962 3.3 2.5 3.0 5.5 2.1 2.9 2.4 0.7

1963 3.7 1.6 2.9 4.7 1.1 3.1 1.8 2.0

1964 . 3.9 2.8 3.5 6.3 2.3 3.4 2.7 1.1

1965 2.5 1.8 2.3 6.4 3.7 4.5 4.0 0.7

1966 2.0 0.2 1.3 5.6 3.5 5.4 4.2 1.8

1967 2.3 -2.6 0.5 2.5 0.2 5.2 2.0 5.0

1968 2.7 0.2 1.8 4.7 1.9 4.5 2.9 2.5

1969 -0.5 -1.9 -1.0 2.7 3.2 4.7 3.7 1.5

1970 0.4 -5.1 -1.6 -1.1 -1.5 4.3 0.5 5.H

1971 3.0 -0.9 1.7 2.7 -0.3 3.7 1.0 4.0

1972 3.0 2.6 2.9 6.5 3.4 3.8 3.5 0.4

1973 1.8 1.4 1.7 6.2 4.3 4.8 4.5 0.4

1974 -2.2 -6.4 -3.6 -1.9 0.3 4.9 1.8 4.5

1975 1.8 -5.4 -0.7 -2.4 -4.1 3.1 -1.7 7.(,

1976 2.6 3.7 3.0 6.1 3.5 2.4 3.1 -1.1

1977 1.5 2.8 2.0 5.9 4.4 3.1 3.9 -1.2

1978 0.8 1.9 1.2 6.0 5.1 4.0 4.7 -1.1

1979 -1.6 -2.8 -2.0 1.8 3.5 4.8 3.9 1.3

1980 -0.5 -5.7 -2.3 -1.2 -0.8 4.7 1.0 5.5

1981 1.0 -2.5 -0.2 1.7 0.8 4.3 2.0 3.5

1982 -0.5 -6.6 -2.7 -3.3 -2.H 3.5 -0.7 6.5

1983 3.3 2.5 3.1 5.0 1.6 2.4 1.9 0.8

1984 1.8 4.2 2.7 8.0 6.1 3.7 5.2 -2.3

1985 0.5 -1.3 -0.2 3.0 2.6 4.4 3.2 1.8

--------------------------------------------------------------------------------------------

See Footnotes Following TetJle 6. Octcher 2, 1986

SCURCE:Bureau of Labor Statistics
ntl1e 6. Manufacturing Sector: ProoucUvity and Related Measures, 1949-85

Productivity .Inputs

~r Output per Output per pt)ltifactor Output Hours of Capital CO'Ibinsi l.Ilits Capi tal per

00ur of all l.Ilitof {roductivity all persons of labor and rour of

persons capital [2] [3] [4] (5] capital inputs [6] all persons

Percent Change

1949 4.1 -6.2 0.6 -5.1 -8.9 1.1 -5.7 10.9

1950 5.4 10.6 7.2 13.9 8.0 3.0 6.3 -4.6

1951 3.9 3.4 3.7 11.9 7.7 8.3 7.9 0.5

1952 1.9 -1.1 0.9 3.4 1.4 4.6 2.5 3.1

1953 2.1 3.5 2.5 7.3 5.1 3.7· 4.7 -1.4

1954 1.4 -7.8 -1.5 -7.3 -8.6 0.5 -5.9 9.9

1955 4.7 6.5 5.3· 10.5 5.5 3.7 5.0 -1.7

1956 -0.6 -4.2 -1.7 0.9 1.5 5.3 2.7 3.7

1957 2.1 -2.8 0.6 0.6 -1.5 3.4 0.0 5.0

1958 -0.6 -9.6 -3.3 -8.7 -8.2 1.0 -5.6 10.0

1959 4.5 9.8 6.1 11.4 6.6 1.4 5.0 -4.9

1960 0.5 -2.1 -0.3 0.2 -0.3 2.3 0.5 2.6

1961 2.8 -1.3 1.6 0.2 -2.5 1.5 -1.3 4.1

1962 4.2 5.3 4.6 8.5 4.1 3.1 3.8 -1.0

1963 6.8 4.9 6.2 7.9 1.0 2.9 1.6 1.8

1964 4.8 3.7 4.4 7.1 2.2 3.2 2.5 1.0

1965 2.7 3.2 2.9 8.7 5.9 5.3 5.7 -0.6

1966 1.1 0.0 0.7 7.7 6.5 7.6 6.9 1.0

1967 -0.1 -7.7 -2.6 -0.3 -0.2 8.0 2.4 8.2

1968 3.2 -0.3 2.1 5.1 1.9 5.4 3.0 3.5

1969 1.2 -1.8 0.3 2.8 1.6 4.7 2.5 3.1

1970 0.0 -9.0 -2.6 -5.6 -5.6 3.8 -3.0 9.9

1971 5.6 -0.7 3.8 1.7 -3.7 2.4 -2.0 6.3

1972 4.4 6.5 5.0 8.9 4.3 2.3 3.7 -2.0

1973 4.9 6.9 5.5 10.7 5.5 3.6 4.9 -1.8

1974 -3.0 -9.2 -4.7 -4.8 -1.9 4.8 -0.1 6.8

1975 2.5 -11.0 -1.3 -7.5 -9.7 4.0 -6.2 15.2

1976 4.6 6.9 5.2 9.7 4.9 2.7 4.3 -2.2

1977 3.0 3.9 3.3 7.4 4.3 3.4 4.0 -0.9

1978 1.5 2.1 1.7 6.0 4.4 3.7 4.2 -0.6

1979 -0.1 -2.4 -0.7 2.0 2.1 4.4 2.7 2.3

1980 0.0 -8.5 -2.2 -4.5 -4.5 4.4 -2.4 9.3

1981 2.2 -2.2 1.1 1.6 -0.6 3.9 0.5 4.5

1982 2.2 -8.3 ,:",0.6 -6.1 -8.1 2.3 -5.6 11.4

1983 5.8 6.2 5.9 6.4 0.6 0.3 0.5 -0.4

1984 4.1 8.6 5.4 10.8 6.4 1.9 5.1 -4.2

1985 4.4 1.8 3.6 3.8 -0.5 2.0 0.2 2.6

See Footnotes Following Table 6. Octcher 2, 1986

SOURCE: Bureau of Labor Statistics
Footnotes: Tables 1-6

SOURCE: Output data from Rurea u of Economic Analys is (BEA),

U.S. Department of Commerce, and the Federal Reserve Board.

Hours data from the Bureau of Labor Statistics, U.S.

Department of Labor. Capi tal measures are based on data

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

(1) The private husiness sector includes all of Gross National

Product except the rest-of-world sector, the rental value of

owner-occupied real estate, the output arising in nonprofit

organizations, the output of paid employees of private

household s, government enterpr ises, general government, and

the statistical discrepancy in preparing the national income

accounts. The private nonfarm business sector al so excl udes

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) Pa id hours of all employees, pIus the hours of propr ietor s

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 comb ined with capi tal services input,

using labor and capital shares of output as weights.