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	             Handbook of Methods > 
					                      Productivity Measures: Business Sector and Major Subsectors

                 Handbook of Methods Productivity Measures: Business Sector and Major Subsectors Data sources
                     Productivity Measures: Business Sector and Major Subsectors: Data sources
				  
				   				   
			  
			   				
				
				
				
			  				
				
				
				
			   



Major Sector Productivity collects data from a variety of different sources. For almost all sectors and industries, output is measured using a different source than inputs (capital, labor, and intermediate inputs purchases). Below is information on data sources for measuring the components of labor productivity and multifactor productivity.
Output
The output index used to calculate productivity differs depending on the level of the economy being measured.
For business, nonfarm business, private business, and private nonfarm business the output index is prepared using real value added measures that are published by the Bureau of Economic Analysis (BEA). These output measures are based on and are consistent with the National Income and Product Accounts (NIPA), including the gross domestic product (GDP) measure, also prepared by the BEA.⁠1 BEA calculates quarterly and annual measures of business sector output by removing from GDP the value added of general government, private households, and nonprofit institutions serving households. These measures, and the measures of nonfarm business sector output, are the real output series used to calculate Bureau of Labor Statistics (BLS) measures of labor productivity in the U.S. business and nonfarm business sectors. To measure multifactor productivity, BLS further restricts output to the U.S. private business sector, excluding the output of government enterprises. The BLS multifactor productivity statistics for the private business and private nonfarm business sectors are constructed using annual BEA output data.
At the NIPA industry level, including manufacturing durable and nondurable sectors, the annual output index used is a sectoral output measure based on data obtained from the Bureau of the Census. Output indexes for industries within the manufacturing sector use current-dollar industry value of production with intraindustry transactions removed and is deflated using prices from the BLS Producer Price Index program. For some nonmanufacturing industries, physical quantities of output are measured using data from the Department of the Interior and the Department of Transportation. For the remainder of nonmanufacturing industries output is prepared with data from the BEA. See table A for industry specific data sources.
Quarterly indexes of manufacturing output underlying the quarterly labor productivity data are estimated using the annual manufacturing of sectoral output based on census data and Indexes of Industrial Production, prepared by the Board of Governors of the Federal Reserve System. Because of a lag in the availability of the annual benchmark data, recent quarterly and annual manufacturing output measures also are extrapolated on the basis of the changes in the Indexes of Industrial Production.
Inputs
Hours worked. The primary source of hours and employment data is the BLS Current Employment Statistics (CES) program, which provides monthly survey data on employment and average weekly hours in nonagricultural establishments. CES data on the number of jobs held by wage and salary workers in nonfarm establishments are supplemented with data from the Current Population Survey (CPS) on self-employed and unpaid family workers to estimate total worker hours for each industry. CES data on the average weekly hours paid of workers are supplemented with CPS data on hours of nonproduction, self-employed, and unpaid family workers. Ratios of hours worked to hours paid are developed using data from the National Compensation Survey (NCS) and the BLS Hours at Work Survey.
Although the hours worked of all persons are usually based on CES and CPS survey data, estimates for some industries are derived from other sources. Estimates of hours for government enterprises and nonprofit corporations are calculated using data from the BEA. For quarterly labor productivity, hours of employees in the farm sector are derived from data from the CPS. For multifactor productivity, hours for this sector are based on USDA farm survey data.
Labor composition. For multifactor productivity, hours worked measures are adjusted for labor composition using data from the CPS. BLS partitions the CPS sample into gender × age category × education level worker groups, and computes the year-to-year growth in hours for independent categories of worker, weighted by work wages.
Labor compensation. Current dollar labor compensation measures are prepared using employee compensation data from the BEA. Compensation data includes wage and salary accruals (including executive compensation), commissions, tips, bonuses, and payments in kind representing income to the recipients—and supplements to these direct payments. Supplements consist of employer contributions to funds for social insurance, private pension and health and welfare plans, compensation for injuries, etc. For labor productivity, self-employed compensation per hour is assumed to be equal to employee compensation per hour.
For multifactor productivity, self-employed compensation is derived from proprietor’s income from BEA. Proprietor’s income includes both capital and labor income. An initial value of labor compensation per hour for proprietors is assumed to be the same as that of the average payrolled employee in that sector. Capital income and labor compensation initial estimates are then adjusted to be consistent with the value added estimates from the Industry accounts at BEA in addition to the proprietor’s income measure published by the BEA NIPA.
Measures of real compensation per hour are derived by adjusting hourly compensation for changes in consumer prices. The price changes for recent quarters are based on the BLS Consumer Price Index for All Urban Consumers (CPI-U). For earlier periods consumer prices are based on the BLS Consumer Price Index research series (CPI-U-RS).
Capital services. For depreciable assets, capital services measures are based on data from the BEA fixed asset accounts by detailed asset, and GDP by industry.
Nondepreciable assets, such as inventories and land, stocks are developed using data from BEA and the Internal Revenue Service. Farm land input is based on data from the Economic Research Service of the U.S. Department of Agriculture.
Intermediate inputs. Data on intermediate inputs—energy, materials, and purchased services—are derived from measures based on the BEA industry accounts.
Exhibit 1. KLEMS (K-capital, L-labor, E-energy, M-materials, and S-purchased services) measures of industry output data sources for Multifactor Productivity (MFP)
Industry title
SourceFarm sector
BEA GDP by industryForestry, fishing, and related activities
BEA GDP by industryOil and gas extraction
Energy Information AdministrationMining, except oil and gas
Energy Information AdministrationSupport activities for mining
Energy Information AdministrationUtilities
Energy Information AdministrationConstruction
BEA GDP by industryWood products
Census Annual Survey of ManufacturesNonmetallic mineral products
Census Annual Survey of ManufacturesPrimary metal products
Census Annual Survey of ManufacturesFabricated metal products
Census Annual Survey of ManufacturesMachinery
Census Annual Survey of ManufacturesComputer and electronic products
Census Annual Survey of ManufacturesElectrical equipment, appliances, and components
Census Annual Survey of ManufacturesTransportation equipment
Census Annual Survey of ManufacturesFurniture and related products
Census Annual Survey of ManufacturesMiscellaneous manufacturing
Census Annual Survey of ManufacturesFood and beverage and tobacco products
Census Annual Survey of ManufacturesTextile mills and Textile product mills
Census Annual Survey of ManufacturesApparel and leather and applied products
Census Annual Survey of ManufacturesPaper products
Census Annual Survey of ManufacturesPrinting and related support activities
Census Annual Survey of ManufacturesPetroleum and coal products
Energy Information AdministrationChemical products
Census Annual Survey of ManufacturesPlastics and rubber products
Census Annual Survey of ManufacturesWholesale trade
BEA GDP by industryRetail trade
BEA GDP by industryAir transportation
Department of TransportationRail transportation
BEA GDP by industryWater transportation
BEA GDP by industryTruck transportation
Census Services Annual SurveyTransit and ground passenger transportation
BEA GDP by industryPipeline transportation
BEA GDP by industryOther transportation and support activities
BEA GDP by industryWarehousing and storage
BEA GDP by industryPublishing industries, except internet [includes software]
Census Services Annual SurveyMotion picture and sound recording industries
BEA GDP by industryBroadcasting and telecommunications
Census Services Annual SurveyData processing, internet publishing, & other info services
BEA GDP by industryFederal reserve banks, credit intermediation, & related activities
BEA GDP by industrySecurities, commodity contracts, and investments
BEA GDP by industryInsurance carriers and related activities
BEA GDP by industryFunds, trusts, and other financial vehicles
BEA GDP by industryReal estate
BEA GDP by industryRental and leasing services and lessors of intangible assets
BEA GDP by industryLegal services
BEA GDP by industryComputer systems design and related services
BEA GDP by industryMiscellaneous professional, scientific, and technical services
BEA GDP by industryManagement of companies and enterprises
BEA GDP by industryAdministrative and support services
BEA GDP by industryWaste management and remediation services
BEA GDP by industryEducational services
BEA GDP by industryAmbulatory health care services
BEA GDP by industryHospitals and nursing and residential care facilities
BEA GDP by industrySocial assistance
BEA GDP by industryPerforming arts, spectator sports, museums, & related activities
BEA GDP by industryAmusements, gambling, and recreation industries
BEA GDP by industryAccommodation
Census Services Annual SurveyFood services and drinking places
Census Services Annual SurveyOther services, except government
BEA GDP by industryNotes
⁠1 A summary of the source data and methods used to estimate current-dollar Gross Domestic Product (GDP) and real GDP is provided by the Bureau of Economic Analysis in "Updated summary of NIPA methodologies," *Survey of Current Business* (Bureau of Economic Analysis, November 2007), pp. 8–25. Also, see "An introduction to the National Income and Product Accounts" (Bureau of Economic Analysis, September 2007). The current chain-type annual-weighted quantity measures are discussed in J. Steven Landefeld and Robert P. Parker, "BEA's chain indexes, time series, and measures of long-term economic growth," *Survey of Current Business* (Bureau of Economic Analysis, May 1997), pp. 58–68. The official introduction of these measures into the National Accounts is discussed in J. Steven Landefeld and Robert P. Parker, "Preview of the comprehensive revision of the National Income and Product Accounts: BEA's new featured measures of output and prices," *Survey of Current Business* (Bureau of Economic Analysis, July 1995), pp. 31–38. These BEA articles may be found on their website (https://apps.bea.gov/scb/).Derivation of business sector output is also discussed in Edwin R. Dean, Michael J. Harper, and Phyllis Flohr Otto, "Improvements to the quarterly productivity measures," *Monthly Labor Review*, (October 1995), pp. 27–32, https://www.bls.gov/opub/mlr/1995/10/art4full.pdf.

				    				   
				   				   
                 Last Modified Date: September 23, 2020 Facebook
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