Labor productivity is the ratio of the output of goods and services to the labor hours devoted to the production of that output. Multifactor productivity relates output to a combination of inputs used in the production of that output, such as labor and capital or labor, capital, energy and materials.
Capital includes equipment, structures, inventories, and land.
Some source data needed to construct such measures are not available quarterly. The most commonly used multifactor productivity measure is for the private business sector of the economy. This sector essentially measures the for-profit sector of the economy and it is the broadest sector for which multifactor productivity measures are available. Because satisfactory capital measures are unavailable for government enterprises, government enterprises are excluded when multifactor productivity is calculated. The labor productivity measures include government enterprises.