Multifactor Productivity

Changes in the Composition of Labor for BLS Multifactor Productivity Measures (Abstract)

The Bureau of Labor Statistics (BLS) labor composition index measures the effect of shifts in the age, education, and gender composition of the work force on the efficiency of labor, and multifactor productivity growth. To construct this index, the Office of Productivity and Technology assembles data on workers' hours classified by their age, education, and gender. Measures of labor input for private business and private nonfarm business sectors are then calculated by summing the annual percent changes in each group's hours of work, each weighted by that group's share of total labor compensation. Additional information concerning data sources and methods of measuring labor composition can be found in Cindy Zoghi, 2007, "Measuring Labor Composition: A Comparison of Alternate Methodologies".

This document examines the most recent changes in composition of labor and in the distribution of hours worked. It also explains how the wage structure is used in calculating weights and its impact on labor input. Also included is a historical table of labor input, hours worked, and labor composition in the private business sector.

For more information, please see "Changes in the Composition of Labor for BLS Multifactor Productivity Measures" (PDF 96 KB).

Last Modified Date: April 10, 2013

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