Bureau of Labor Statistics

Historical, technical

information: (202) 523-9261

Media contact: (202) 523-1913

United States ~~

Department ~

of Labor

Washington, D.C. 20212

USDL 88-478

For Release 10:00 AM EDT

Friday, September 30, 1988

MULnFACTOR PRODUCTIVITY MEASURES, 1987

Private Business, Private Nonfarm Business, and Manufacturing

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

reported mu1tifactor productivity measures--output per unit of combined labor

and 'capita1--for 1987. Mu1tifactor productivity increased from 1986 to 1987

at the following rates:

0.8 percent in private business,

0.8' percent in private nonfarm business, and

3.4 percent in manufacturing.

The increase in multifactor productivity in the private business,sector

was the fifth consecutive increase, but the smallest since 1982. The .rise in

private nonfarm business productivity also was the fifth consecutive increase,

but was smaller than the 1986 increase. The growth in manufacturing mu1tifactor productivity was larger than the growth in 1986 and also the fifth

consecutive increase. The 1987 annual changes are summarized in table Aj

further detail and historical measures are shown in tables 1 through 6.

The change in multifactor productivity ·reflects the difference between

the change in output (production of goods and services) and the change in

labor and capital services engaged in the production of the output. Multifactor productivity change 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,

change in the composition of labor input (as measured by education and

experience), and change in the organization of production.
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Table A. Productivity indexes and related measures

Percent change from 1986 to 1987

Private

Private nonfarm ManuItem business 1./ business 11 facturing

Productivity:

Output per hour of all persons ••••••• 0.8 0.7 '3.4

Output per unit of capital services•• 0.8 0.8 3.7

Multifactor productivity 1/ .•.•..•..• 0.8 0.8 3.4

Output ••••••••••••••••••••••••••••••••• 3.7 3.8 4.3

Inputs:

Hours of all persons ••••••••••••••••• 2.8 3.0 0.9

Capital services ••••••••••••••••••••• 2.8 3.0 0.6

Combined units of labor and

capital input 11................... 2.8 3.0 0.9

Capital services per hour of

all persons (capital-labor ratio)•••• 0.0 -0.1 -0.3

1/ Excludes government enterprises.

21 Output per unit of combined labor and capital input.

31 Hours of all persons combined with capital service input index, weighted by

labor and capital shares.

The Bureau of Labor Statistics also publishes quarterly and annual measures of labor productivity, or output per unit of labor input, eight times a

year. The percent change in labor productivity indicates the portion of the

change in output that cannot be accounted for by the change in labor ,inputs.

By contrast, the percent change in multifactor productivity indica,tes the

portion of the change in output that cannot be accounted for by the change in

combined inputs of labor and capital.

Private business sector

Multifactor productivity increased 0.8 percent in 1987 in private business, marking the fifth consecutive ann~al increase since 1982 (table 1). The

1987 increase resulted from a 3.7 percent increase in output and a 2.8 percent

increase in combined labor a~d ,capital inputs. Separately, both hours (labor

input) and capital services grew 2.8 percent from 1986 to 1987. Hence, the

ratio' of capital services to hours (capital-labor ratio) showed no change in

1987. In most years, capital services have increased more rapidly than hours.
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Output increased more rapidly than hours in 1987, resulting in an

increase in labor productivity (output per hour of all persons) of 0.8 percent

from 1986 to 1987. Capital productivity (the ratio of output to capital

services) also increased 0.8 percent in 1987.

Private nonfanm business

Multifactor productivity increased 0.8 percent in 1987 in private nonfarm

business. This was the fifth consecutive annual increase, but it was less

than the 1986 increase of 1.2 percent (table 2). Output increased 3.8 percent

last year in the nonfarm business sector while combined inputs of capital and

labor increased 3.0 percent. Separately, hours of all persons and capital

servi ces both increased 3.0 percent in 1987, and the capital-l abor rat io fell

0.1 percent in private nonfarm business. The increase in hours was the

largest since 1984, while the increase in capital services was the smallest

since 1983.

Labor productivity increased 0.7 percent in 1987, and capital productivity increased 0.8 percent. The rise in labor productivity was smaller than

in 1986, while the increase in capital productivity was larger.

Manufacturing

In manufacturing, multi factor productivity increased 3.4 percent in

1987. In recent years, manufacturi ng has cons i stent ly recorded ~tronger

multifactor productivity gains than the two larger sectors of which it is a

component. Since 1982, increases in multifactor productivity in manufacturing

have been 3 percent or larger in most years (table 3), while, in private business and private nonfarm business, annual gains have generally been lower than

this figure.

In 1987, manufacturing output increased 4.3 percent, and comhined inputs

increased 0.9 percent. Hours of all persons rose 0.9 percent in 1987, the

first increase since 1984, and capital services rose 0.6 percent, the smallest

increase since 1983. The capital-labor ratio fell 0.3 percent in 1987, the

first decrease since 19B4.

In 1987, labor productivity r03e 3.4 percent in manu~acturing, the fifth

consecutive year of gains of 3 percent or more. Capital productivity

increased 3.7 percent in 1987, an improvement over the 1986 increase of about

1 percent. In manufa·cturing, gains in both labor productivity and capital

productivity have been· stronger in recent years than in the other two major

sectors.

Long-te~ trends

From 1948 to 1987, multifactur productivity grew at an average annual

rate of 1.4 percent in private business; 1.1 percent in private nonfarm

business; and 1.9 percent in manufacturing (table B). These long-term rates

reflect the di Fference between the average annual rate of change in labor
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Table 8. Compound annual rates of growth in output per hour of all

persons, the contribution of capital intensity, 'and multifactor

productivity, by major sector, 1948 to 1987

Measure 1948- 1948- 1973- 1979-

1987 1973 1979 1987

Private business 1/

Output per hour of all persons 2.3 2.9 0.6 1.4

Contribution of capital intensity 'i./ 0.9 0.9 0.5 0.8

Multifactor productivity 11 1.4 2.0 0.1 0.6

Private nonfarm business 11

'Output per hour of all persons 1.9 2.5 0.5 1.2

Contribution of capi ta 1 intensity 'i.1 0.8 0.8 0.6 0.7

Multifactor productivity 11 1.1 1.7 -0.1 0.5

Manufacturing

Output per hour of all persons 2.7 2.8 1.4 3.3

Contribution of capital intensity 'i.1 0.8 0.8 0.9 0.7

Multifactor productivity 11 1.9 2.0 0.5 2.6

II Excludes go¥ernment enterprises.

21 Change in capital ser'vices per hour times capital's share of current dollar

output.

1/ Output per unit of combined labor and capital input.

Source: Tables 4-6.
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productivity (output per hour) and the average annual contribution of capital

intensity. Hence, the 1.4 percent rate of growth between 1948 and 1987 in

private business equals the 2.3 percent growth in lahor productivity minus the

0.9 percent growth in the contribution of capital intensity. The latter

equals the change in the capital-labor ratio multiplied by capital's share of

total output; historically, capital's share has been approximately one-third

of total output.

The widely discussed post-1973 productivity slowdown is obvious from the

data in table B. From 1948 to 1973, multifactor productivity grew at an

annual rate of 2.0 percent in private business and 1.7 percent in private

nonfarm business. These rates, combined with the annual growth of the

contribution of capital intensity of 0.9 percent in private business and 0.8

percent in private nonfarm business, resulted in labor productivity growth

rates of 2.9 percent and 2.5 percent, respectively, in these two sectors.

; During the period 1973 to 1979, gains in multifactor productivity slowed

to only 0.1 percent per year in private business. At the same time, the

average annual contribution of capital intensity decreased to 0.'5 percent.

Labor productivity, therefore, increased only 0.6 percent per year from 1973

to 1979. A similar slowdown occurred in private nonfarm business during the

1973-79 period.

Multifactor productivity in manufacturing grew at an annual rate of 2.0

percent from 1948 to 1973. This growth rate fell to 0.5 percent during the

years 1973 to, 1979. However, the contribution of capital intensity did not

fall as it had in the overall business sectors, but remained about constant at

0.9 percent per year. This steady contribution of capital intensity helped

prevent labor productivity growth in manufacturing from decreasing as much as

in the two larger sectors.

In the latest period, 1979 to 1987, multifactor productivity in

manufacturing increased 2.6 percent per year, and labor productivity rose 3.3

percent per year. These results represented a return to pre-1973 growth

rates. On the other hand, multifactor productivity grew only 0.6 percent per

year in private business and 0.5 percent in private nonfarm business during

this period. These growth rates represented an increase from the 1973-79

rates but were still well below the pre-1973 rates.

Summary of Methods

The following note describes the major data sources and the procedures

used in deriving BLS multifactor productivity indexes. More detailed

information on the methods, limitations, and data sources is provided in BLS

Bulletin 2178, "Trends in Multifactor ~roductivity, 1948-81."
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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 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 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 averaged with the

preceding year's share.

Data are presented. for the private business, private nonfam business,

and manufacturing sectors. The private business sector, which accounts for

about 80 percent of the gross national product, includes all activities in the

economy with the exception of general government, government enterprises, the

rest-of-the-wor1d sector, owner-occupied housing, nonprofit institutions,

private household employees, and the statistical discrepancy. The private

nonfam business sector also excludes farms but includes agricultural

services.

These ~ultifactor 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 effectR of

many influences, including change in technology; level of output; the

organization of production; managerial skill; and tl?a characteristics and

effort of the work force.
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Table 1. Private Business Sector: Productivity and Related ~easures. 1949-~7 (1)

Productivity Inputs

------1 ---

--

Year Output per Output per MuItifactor Output Hours of Capital Cornbined units Cap

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

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

it;..j 1 ;.>t-! r

our,)f

Percent Change

1949 1.1 -4.1 -0.8 -2.4 -3.5 1.8 -1.6 5.4

1950 8.6 6.2 7.7 9.8 1.1 3.4 1.9 2.3

1951 4.1 2.2 3.4 7.1 2.9 4.8 3.6 1.'3

1952 3.2 0.3 2.2 3.2 0.0 2.9 1.0 2.9

1953 3.7 2.1 3.1 4.7 1.0 2.6 1.5 1.6

1954 1.7 -3.4 -0.1 -1.8 -3.4 1.7 -1.7 5.3

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 3.8 2.3 2.2

1957 2.7 -1.6 1.2 1.1 -1.6 2.8 -0.1 4.4

1958 3.0 -3.4 0.8 -1.9 -4.8 1.6 -2.6 6.7

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 1.8 2.6 6.3 3.2 4.4 3.6 1.1

1966 2.7 -0.1 1.6 5.2 2.4 5.3 3.5 2.8

1967 2.7 -2.4 0.8 2.7 -0.1 5.2 1.8 5.3

1968 2.8 0.0 1.8 4.5 1.6 4.4 2.6 2.8

1969 0.1 -1.8 -0.6 2.7 2.6 4.6 3.3 1.9

1970 0.8 -4.9 -1.2 -0.9 -1.7 4.2 0.3 6.1

1971 3.3 -0.9 1.8 2.7 -0.5 3.7 0.9 4.2

1972 3.0 2.5 2.8 6.4 3.3 3.8 3.4 0.5

1973 2.0 1.3 1.7 6.0 4.0 4.7 4.2 0.7

1974 -2.1 -6.3 -3.6 -1.9 0.3 4.8 1.8 4.5

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

1976 2.8 3.6 3.0 5.9 3.0 2.2 2.7 -0.8

1977 1.6 2.8 2.1 5.8 4.1 2.9 3.7 -1.1

1978 0.8 1.9 1.2 5.8 5.0 3.8 4.6 -1.1

1979 -1.2 -2.1 -1.6 2.0 3.2 4.2 3.6 0.9

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

1981 1.4 -1.8 0.3 2.2 0.7 4.1 1.9 3.3

1982 -0.3 -6.2 -2.5 -3.1 -2.8 3.3 -0.7 6.3

1983 2.8 2.0 2.5 4.2 1.5 2.2 1.7 0.7

1984 2.5 5.0 3.4 8.5 5.8 3.3 4.9 -2.4

1985 2.1 0.2 1.4 4.2 2.1 4.1 2.8 2.0

1986 2.2 0.1 1.5 3.6 1.3 3.5 2.1 2.2

1987 0.8 0.8 0.8 3.7 2.8 2.8 2.8 0.0

See footnotes following table 6. Sept. 3D, 1988

Source: Bureau of Labor Statistics
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Table 2. Private Nonfarm Business Sector: Productivity and Related ~easures, 1949-87 (I)

Productivity Inputs

Year Output per Output per Mu1tifactor Output Hours of Capital Combined units Capital per

hou r of all unit of productivity all persons of labor and hour of

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

Percent Change

1949 1.8 -4.0 -0.3 -2.3 -4.1 1.8 -2.0 6.1

1950 6.6 6.1 6.4 9.9 3.1 3.6 3.3 0.5

1951 3.1 2.5 2.8 7.8 4.6 5.2 4.8 0.6

1952 2.3 0.2 1.6 3.2 0.9 3.0 1.6 2.1

1953 2.2 2.0 2.1 4.7 2.5 2.7 2.6 0.2

1954 1.6 -3.7 -0.3 -2.0 -3.5 1.7 -1.7 5.4

1955 3.0 3.6 3.2 7.2 4.1 3.6 3.9 -0.5

1956 0.6 -D.8 0.1 3.1 2.5 4.0 3.0 1.5

1957 1.9 .-1.5 0.7 1.3 -0.6 2.9 0.6 3.5

1958 2.5 -3.7 0.3 -2.1 -4.5 1.6 -2.4 6.4

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 2.8 1.3 2.2

1961 3.2 -D.1 2.1 2.0 -1.2 2.1 -D. 1 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 3.5 2.7 1.1

1965 2.5 1.8 2.2 6.4 3.7 4.5 4.0 0.8

1966 2.0 0.1 1.•3 5.6 3.5 5.5 4.2 1.9

1967 2.3 -2.7 0.5 2.5 0.2 5.3 2.0 5.1

1968 2.7 0.1 1.8 4.7 1.9 4.6 2.9 2.6

1969 -0.5 -2.0 -1.0 2.7 3.2 4.8 3.8 1.6

1970 0.4 -5.2 -1.6 -1.1 -1.5 4.3 0.5 5.9

1971 3.0 -1.0 1.6 2.7 -D.3 3.8 1.1 4.1

1972 3.0 2.5 2.8 6.5 3.4 3.9 3.6 0.5

1973 1.8 1.2 1.6 6.2 4.3 4.9 4.5 0.6

1974 -2.2 -6.6 -3.7 -1.9 0.3 5.0 1.9 4.7

1975 1.8 -5.4 -0.7 -2.4 -4.1 3.2 -1.7 7.6

1976 2.6 3.6 2.9 6.1 3.5 2.4 3.1 -1.0

1977 1.5 2.7 1.9 5.9 4.4 3.2 3.9 -1.2

1978 0.8 1.9 1.2 6.0 5.1 4.0 4.7 -1.0

1979 -1.6 -2.9 -2.0 1.8 3.5 4.8 4.0 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 -2.6 -3.3 -2.8 3.5 -0.7 6.5

1983 3.4 2.6 3.1 5.0 1.6 2.3 1.9 0.7

1984 2.1 4.6 3.0 8.4 6.1 3.6 5.2 -2.4

1985 1.4 -0.4 0.8 3.9 2.4 4.3 "3.1 1.9

1986 2.0 -D.2 1.2 3.5 1.4 3.7 2.2 2.2

1987 0.7 0.8 0.8 3.8 3.0 3.0 3.0 -0.1

See footnotes following table 6. Sept. 30, 1988

Source: Bureau of Labor Statistics
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Table 3. Manufacturing Sector: Productivity and Related Measures, 1949-87

--------~._-

Productivity Inputs

Year Output per Output per Multifactor Output Hours of Capital Combined uni t s Capit~l ~2r

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

persons capital (2 ) (3) (4 ) (5) capital inputs(h) all persons

Percent Change

1949 4.1 -5.9 0.7 -5.1 -8.9 0.8 -5.8 IO.G

1950 5.4 10.4 7.1 13.9 8.0 3.2 6.3 -4.4

1951 3.9 2.1 3.3 . 11.9 7.7 9.6 8.3 1.8

1952 1.9 -1.1 0.9 3.4 1.4 4.6 2.5 3.I

1953 2.1 3.5 2.5 7.3 5.1 3.7 4.7 -1.4

1954 1.4 -7.4 -1.4 -7.3 -8.6 0.1 -6.0 9.5

1955 4.7 6.4 5.2 10.5 5.5 3.8 5.0 -1.6

1956 -0.6 -4.3 -1.8 0.9 1.5 5.5 2.7 3.9

1957 2.1 -2.6 0.7 0.6 -1.5 3.2 -0.1 4.8

1958 -0.6 -9.4 -3.3 -8.7 -8.2 0.7 -5.6 9.7

1959 4.5 9.8 6.1 11.4 6.6 1.5 5.0 -4.8

1960 0.5 -2.1 -0.3 0.2 -0.3 2.4 0.5 2.7

1961 2.8 -1.2 1.6 0.2 -2.5 1.4 -1.3 4.1

1962 4.2 5.2 4.5 8.5 4.1 3.1 3.8 -0.9

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 3.3 2.9 8.7 5.9 5.3 5.7 -0.6

1966 1.1 0.0 0.7 7.7 6.5 7.7 6.9 1.1

1967 -0.1 -7.7 -2.6 -0.3 -0.2 8.1 2.4 8.3

1968 3.2 -0.2 2.1 5.1 1.9 5.3 2.9 3.4

1969 1.2 -1.8 0.3 2.8 1.6 4.7 2.5 3.0

1970 0.0 -8.9 -2.6 -5.6 -5.6 3.7 -3.0 9.8

1971 5.6 -0.6 3.8 1.7 -3.7 2.3 -2.0 6.2

1972 4.4 6.4 5.0 8.9 4.3 2.3 3.7 -1.9

1973 4.9 6.8 5.5 10.7 5.5 3.6 5.0 -1.8

1974 -3.0 -9.3 -4.7 -4.8 -1.9 5.0 -0.1 7.0

1975 2.5 -11.1 -1.4 -7.5 -9.7 4.1 -6.2 15.3

1976 4.6 6.7 5.2 9.7 4.9 2.8 4.3 -2.1

1977 3.0 3.7 3.2 7.4 4.3 3.5 4.1 -0.7

1978 1.5 2.0 1.6 6.0 4.4 3.9 4.2 -0.5

1979 -0.1 -2.4 -0.7 2.0 2.1 4.6 2.7 2.4

1980 0.0 -8.6 -2.3 -4.5 -4.5 4.4 -2.3 9.4

1981 2.2 -2.2 1.1 1.6 -0.6 3.9 0.5 4.5

1982 2.2 -8.2 -0.5 -6.1 -8.1 2.3 -5.6 11.4

1983 5.8 6.2 5.9 6.4 0.6 0.2 0.5 -0.4

1984 5.5 10.2 6.8 12.2 6.4 1.8 5.1 -4.3

1985 4.6 1.8 3.8 3.8 -0.8 1.9 0.0 2.8

1986 3.3 1.1 2.7 2.3 -1.0 1.1 -0.4 2.1

1987 3.4 3.7 3.4 4.3 0.9 0.6 0.9 -0.3

See footnotes following table 6. Sept. 30, 1988

Source: Bureau of Labor Statistics
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Table 4. Private Business Sector: Productivity and Related Measures, 1948-87 (1)

Productivity Inputs

Year Output per Output per Multifactor Output Hou rs of Capital Combined units Capital per

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

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

Indexes 1977-100

1948 46.5 99.0 60.8 38.1 81.8 38.5 62.6 47.0

1949 47.1 95.0 60.3 37.2 79.0 39.1 61.6 49.6

1950 51.1 100.8 64.9 40.8 79.9 40.5 62.8 50.7

1951 53.2 103.0 67.2 43.7 82.2 42.4 65.1 51.6

1952 54.9 103.4 68.6 45.1 82.1 43.6 65.7 53.1

1953 56.9 105.5 70.8 47.2 82.9 44.8 66.7 54.0

1954 57.9 101.9 70.7 46.4 80.1 45.5 65.6 56.8

1955 59.7 105.5 73.0 49.6 83.1 47.0 68.0 56.6

1956 60.5 104.6 73.4 51.1 84.4 48.8 69.5 57.8

1957 62.1 102.9 74.3 51.6 83.1 50.1 69.5 60.4

1958 64.0 99.4 74.8 50.6 79.1 50.9 67.6 64.4

1959 66.2 104.5 77 .8 54.3 82.1 52.0 69.8 63.3

1960 67.3 103.7 78.5 55.3 82.2 53.3 70.5 64.9

1961 69.7 103.7 80.3 56.3 80.8 54.4 70.2 67.3

1962 72.3 106.2 82.9 59.3 82.1 55.8 71.6 68.0

1963 75.2 108.0 85.5 62.0 82.5 57.5 72.6 69.6

1964 7f'..4 110.8 88.7 65.8 83.8 59.4 74.2 70.8

1965 80.8 112.8 90.9 69.9 86.5 62.0 76.9 71.6

1966 82.9 112.7 92.4 73.5 88.6 65.2 79.5 73.6

1967 85.2 110.0 93.2 75.4 88.5 68.6 81.0 77 .5

1968 87.6 110.0 94.8 78.8 90.0 71.7 83.1 79.6

1969 87.7 108.0 94.3 81.0 92.4 75.0 85.9 81.2

1970 88.4 102.7 93.1 80.2 90.8 78.1 86.1 86.1

1971 91.3 101.8 94.8 82.4 90.3 81.0 86.9 89.7

1972 94.0 104.3 97.5 87.7 93.2 84.0 89.9 90.1

1973 95.9 105.6 99.2 93.0 96.9 88.0 93.7 90.8

1974 93.8 98.9 95.6 91.2 97.2 92.2 95.4 94.9

1975 95.7 94.0 95.1 89.3 93.2 95.0 93.9 101.9

1976 98.4 97.3 98.0 94.5 96.1 97.1 96.4 101.1

1977 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

1978 100.8 101.9 101.2 105.8 105.0 103.8 104.6 98.9

1979 99.5 99.7 99.6 107.9 108.4 108.2 108.3 99.8

1980 99.2 94.1 97.4 106.6 107.5 113.3 109.4 105.4

1981 100.6 92.3 97.6 108.9 108.2 117.9 111.5 108.9

1982 100.3 86.6 95.2 ~05.4 105.2 121.8 110.7 115.8

1983 103.0 88.3 97.6 109.9 106.7 124.4 112.6 116.6

1984 105.6 92.7 100.9 119.2 112.9 128.6 118.1 113.9

1985 107.9 92.9 102.4 124.3 115.2 133.8 121.4 116.1

1986 110.3 93.0 103.9 128.7 116.7 138.5 123.9 118.7

1987 111.2 93.7 104.7 133.4 120.0 142.4 127.4 118.6

See footnotes following table 6. Sept. 30, 1988

Source: Bureau of Labor Statistics
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Table 5. Private nonfarm business sector: Productivity and Related Measures, 1948-87 (1)

Productivity Inputs

Year Output per Output per Multifactor Output Hours of Capital Combi ned units Capit;.;1per

hour of all uni t of productivity all persons of labor and hou r of

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

Indexes 1977=100

1948 52.6 100.6 66.0 36.9 70.2 36.7 55.9 52.3

1949 53.6 96.5 65.8 36.1 67.3 37.4 54.8 55.5

1950 57.1 102.4 70.1 39.7 69.4 38.7 56.6 55.8

1951 58.9 104.9 72.1 42.8 72.6 40.8 59.3 56.1

1952 60.3 105.1 73.2 44.1 73.2 42.0 60.3 57.3

1953 61.6 107.2 74.7 46.2 75.1 43.1 61.8 57.4

1954 62.5 103.3 74.5 45.3 72.4 43.9 60.8 60.6

1955 64.4 106.9 76.9 48.6 75.4 45.4 63.1 60.2

1956 64.8 106.1 77 .0 50.1 77 .3 47.2 65.1 61.1

1957 66.1 104.4 77 .6 50.8 76.8 48.6 65.5 63.3

1958 67.7 100.6 77.8 49.7 73.4 49.4 63.9 67.3

1959 69.9 106.1 80.9 53.6 76.6 50.5 66.2 65.9

1960 70.7 104.9 81.2 54.4 77.0 51.9 67.1 67.4

1961 73.0 104.7 82.8 55.5 76.1 53.0 67.0 69.7

1962 75.4 107.4 85.3 58.6 77.7 54.5 68.6 70.2

1963 78.1 109.2 87.8 61.3 78.5 56.2 69.8 71.6

1964 81.2 112.2 90.9 65.2 80.3 58.1 71.8 72 .4

1965 83.3 114.2 93.0 69.4 83.3 60.8 74.6 72.9

1966 85.0 114.3 94.2 73.3 86.3 64.1 77 .8 74.3

1967 86.9 111.3 94.6 75.1 86.4 67.5 79.4 78.1

1968 89.3 111.4 96.3 78.7 88.1 70.6 81.7 80.1

1969 88.9 109.2 95.3 80.8 90.9 74.0 84.7 81.4

1970 89.2 103.5 93.8 79.9 89.6 77 .2 85.2 86.2

1971 91.9 102.5 95.4 82.1 89.3 80.1 86.1 89.7

1972 94.7 105.0 98.1 87.4 92.3 83.2 89.1 90.2

1973 96.4 106.3 99.7 92.9 96.3 87.3 93.2 90.7

1974 94.3 99.4 96.0 91.1 96.6 91.7 94.9 94.9

1975 96.0 94.0 .95.3 88.9 92.6 94.6 93.3 102.2

1976 98.5 97.4 98.1 94.4 95.8 96.9 96.2 101.2

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 99.0

1979 99.2 98.9 99.1 107.9 108.8 109.1 108.9 100.3

.1980 98.7 93.3 96.9 106.6 108.0 114.2 110.0 105.7

1981 99.6 91.0 96.7 108.4 108.8 119.1 112.2 109.4

1982 99.1 85.1 94.1 104.8 105.7 123.3 111.4 116.6

1983 102.5 87.3 97.0 110.1 107.4 126.1 113.5- 117.4

1984 104.7 91.3 99.9 119.3 114.0 130.6 119.4 114.6

1985 106.2 91.0 100.7 124.0 116.8 136.3 123.1 11(,.7

1986 108.3 90.8 102.0 128.3 118.5 141.3 125.8 119.3

1987 109.1 91.5 102.7 133~2 122.0 145.5 129.6 119.2

See footnotes following table 6. Sept. 30, 1988

Source: Bureau' of Labor Statistics
- 12 -

Table 6. Manufacturing Sector: Productivity and Related Measures, 1948-87

Productivity Inputs

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

hour of all uni t of productivity all persons of labor and hour of

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

Indexes 1977=100

1948 46.6 106.1 59.5 37.0 79.4 34.8 62.1 43.9

1949 48.5 99.9 60.0 35.1 72.4 35.1 58.5 48.5

1950 51.1 1l0.2 64.2 40.0 78.2 36.3 62.2 46.4

1951 53.1 112.5 66.3 44.7 84.2 39.7 67.4 47.2

1952 54.1 lll.2 66.9 46.2 85.4 41.6 69.1 48.7

1953 55.3 115.1 68.6 49.6 89.8 43.1 72.3 48.0

1954 56.0 106.6 67.7 46.0 82.1 43.1 68.0 52.5

1955 58.7 ll3.5 71.2 50.8 86.6 44.8 71.3 51.7

1956 58.3 108.6 69.9 51.3 87.9 47.2 73.3 53.7

1957 59.6 105.8 70.4 51.5 86.5 48.7 73.2 56.3

1958 59.3 95.9 68.1 47.0 79.4 49.1 69.1 61.8

1959 61.9 105.2 72.2 52.4 84.6 49.8 72.5 58.8

1960 62.2 103.0 72.0 52.5 84.4 51.0 72.9 60.4

1961 64.0 101.8 73.1 52.6 82.3 51.7 71.9 62.9

1962 66.7 107.1 76.5 57.1 85.6 53.3 74.7 62.3

1963 71.2 ll2.3 81.2 61.6 86.5 54.9 75.9 63.4

1964 74.6 ll6.5 84.8 66.0 88.4 56.6 77 .8 64.0

1965 76.6 120.3 87.2 71.7 93.6 59.6 82.2 63.7

1966 77 .4 120.3 87.8 77 .2 99.7 64.2 87.9 64.4

1967 77 .4 lll.0 85.6 77.0 99.5 69.3 90.0 69.7

1968 79.8 110.8 87.4 80.9 101.4 73.0 92.6 72.0

1969 80.8 108.8 87.6 83.2 103.0 76.5 95.0 74.2

1970 80.8 99.1 85.3 78.6 97.3 79.3 92.1 81.5

1971 85.3 98.5 88.5 79.9 93.7 81.1 90.3 86.6

1972 89.0 104.8 92.9 87.0 97.8 83.0 93.6 84.9

1973 93.4 112.0 98.0 96.3 103.1 86.0 98.3 83.4

1974 90.6 101.6 93.4 91.7 101.2 90.3 98.2 89.2

1975 92.9 90.3 ~2.1 84.9 91.4 94.0 92.1 102.8

1976 97.1 96.4 96.9 93.1 95.9 96.6 96.1 100.7

1977 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

1978 101.5 102.0 101.6 106.0 104.4 103.9 104.2 99.5

1979 101.4 99.5 100.9 108.1 106.5 108.6 107.1 101.9

-1980 101.4 91.0 98.6 103.2 101.7 ll3.4 104.6 lll.5

1981 103.6 89.0 99.7 104.8 101.1 ll7.8 105.1 116.5

1982 105.9 81.6 99.2 98.4 92.9 120.5 99.2 129.8

1983 ll2.0 86.7 105.0 104.7 93.5 120.8 99.7 129.3

1984 ll8.1 95.5 112.1 ll7.5 99.5 123.0 104.8" 123.7

1985 123.6 97.3 116.4 122.0 98.7 125.4 104.8 127.1

1986 127.7 98.4 119.5 124.7 97.7 126.8 104.4 129.8

1987 131.9 102.0 123.6 130.1 98.6 127.6 105.3 129.4

See footnotes following table 6. Sept. 30, 1988

Source: Bureau of Labor Statistics
- 13 -

Footnotes, Tables 1-6

SOURCES: Output data are from Bureau of Economic A~alysis (BEA), U.S.

Department of Commerce, and the Federal Reserve Board •. Compensati on and hou rs

data are 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)

(2)

-(3)

(4)

(5)

(6)

The private business sector includes all of Gross National Product

except the rest-of-worl d sector, the rental value of owner-occupi ed real

estate, the output arising in nonprofit organizations, the output of

paid employees of private households, general government, government

enterprises, and the statistical discrepancy in preparing the national'

income accounts. The private nonfarm business sector also excludes

farms, but includes agricultural services.

Output per unit of combined labor and capital inputs.

Gross Domestic Product originating in the sector, in constant dollars.

I

Paid hours of all employees, plus the hours of proprietors and unpaid

family workers engaged in the sector.

A measure of the flow of capital services used in the sector.

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

shares of output as weights.
-14-

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