Economic News Release

Multifactor Productivity Trends News Release

For release 10:00 am (EDT) Wednesday, July 9, 2014	USDL-14-1286
Technical information:	(202) 691-5606  •  mfpweb@bls.gov  •  www.bls.gov/mfp
Media contact:	        (202) 691-5902  •  PressOffice@bls.gov
 
PRELIMINARY MULTIFACTOR PRODUCTIVITY TRENDS – 2013

Private nonfarm business sector multifactor productivity increased at a 0.3
percent annual rate in 2013, the U.S. Bureau of Labor Statistics reported 
today. (See chart 1, table A.) The gain in multifactor productivity was the
smallest annual percent change since a 0.3-percent decline in 2009. The 
multifactor productivity increase in 2013 reflected a 2.3-percent increase 
in output and a 1.9-percent increase in the combined inputs of capital and 
labor. Capital services grew by 1.9 percent and labor input – which is the 
combined effect of hours worked and labor composition – also grew by 1.9 
percent. Capital services per hour of all persons slightly increased at a 
rate of 0.3 percent in 2013 after falling 0.8 percent in 2012 and 1.1 percent
in 2011. (See table 1.)

Multifactor productivity measures the change in output per unit of combined 
capital and labor input. It is designed to measure the joint influences of 
technological change, efficiency improvements, returns to scale, reallocation
of resources, and other factors on economic growth, allowing for the effects 
of capital and labor. Multifactor productivity, therefore, differs from labor
productivity (output per hour worked) measures that are published quarterly
by BLS. Multifactor productivity includes information on capital services, 
hours worked, and shifts in the composition of labor. Estimates of capital 
services and labor composition are not included in the quarterly labor 
productivity measures. Additionally, much of the source data needed to 
construct multifactor productivity measures are not available quarterly.

Private business sector multifactor productivity grew by 0.7 percent in 2013.
A 2.5-percent increase in output and a 1.8-percent increase in the combined 
inputs of capital and labor contributed to the multifactor productivity gain
in 2013. (See table 2.)
 
 
Historical trends in the private nonfarm business sector

Multifactor productivity in the private nonfarm business sector grew 0.9 
percent annually from 1987 to 2013. (See table A.) For the 2007-2013 period,
multifactor productivity grew 0.6 percent on average as combined inputs 
increased 0.4 percent and output increased 1.0 percent. The increase in 
combined inputs reflected a decrease in labor input of 0.1 percent combined
with a 1.4-percent increase in capital services. In contrast, the 0.9-percent
average annual percent change in multifactor productivity from 1987 to 2013
was a result of output growing 2.9 percent and combined inputs increasing 
2.0 percent. (See table 1.)

Annual labor productivity growth can be viewed as the sum of three components:
multifactor productivity growth, the contribution of capital intensity, and 
the contribution of shifts in labor composition. Output per hour shifted 
sharply upwards after the 1990-1995 period reflecting increases in 
contribution of capital intensity and multifactor productivity.

For the 2007-2013 period, the contribution of capital intensity and the 
contribution of labor composition amounted to 0.7 percent and 0.3 percent,
respectively. Additionally, the growth in multifactor productivity of 0.6 
percent contributed to an overall growth of output per hour of 1.7 percent.
This component of labor productivity growth more closely resembles the 
1990-1995 period, prior to the upward shift in multifactor productivity 
and capital intensity. (See chart 2, table B.) 

In 2013, the contribution of capital intensity in the private nonfarm business
sector increased 0.1 percent. Combined with a modest 0.2-percent increase in
the contribution of labor composition and a 0.3-percent increase in multifactor
productivity, output per hour of all persons increased at a 0.6 percent annual
rate. Labor productivity growth was much smaller than the average increase of
2.1 percent over the duration of the series, from 1987 to 2013. (See table B.)

The methodology for measuring preliminary multifactor productivity for 2013 is
a simplified version of the methodology that BLS uses when more detailed data
are available. Measures will be revised in early 2015. 
 
Table A.  Compound average growth rates for productivity, output, and inputs
in the private nonfarm business and private business sectors for selected
periods,1987-2013

In percent


                            1987-  1987-  1990-  1995-  2000-  2007-  2012-
                            2013   1990   1995   2000   2007   2013   2013

Private nonfarm business1

Productivity
  Multifactor Productivity2  0.9    0.5    0.5    1.4    1.4    0.6    0.3
    Output per hour of all
      persons                2.1    1.5    1.6    2.8    2.7    1.7    0.6
    Output per unit of
      capital services      -0.5   -0.5   -0.4   -0.9   -0.5   -0.3    0.3


Output                       2.9    3.3    3.0    5.1    2.8    1.0    2.3


Inputs

  Combined inputs3           2.0    2.8    2.5    3.6    1.4    0.4    1.9
   Labor input4              1.2    2.3    2.0    2.5    0.4   -0.1    1.9
     Hours                   0.7    1.7    1.3    2.2    0.1   -0.6    1.6
     Labor Composition5      0.5    0.6    0.7    0.3    0.3    0.5    0.3
   Capital services          3.4    3.8    3.4    6.0    3.3    1.4    1.9

Analytic ratio
  Capital services per
    hour of all persons      2.7    2.0    2.1    3.7    3.2    2.0    0.3


Private business1

Productivity
  Multifactor Productivity2  1.0    0.6    0.5    1.6    1.4    0.7    0.7
    Output per hour of all
      persons                2.2    1.7    1.6    3.0    2.7    1.7    1.0
    Output per unit of
      capital services      -0.4   -0.5   -0.3   -0.6   -0.5   -0.3    0.7


Output                       2.9    3.3    2.9    5.1    2.8    1.1    2.5


Inputs

  Combined inputs3           1.9    2.7    2.5    3.5    1.3    0.4    1.8
   Labor input4              1.2    2.1    2.1    2.4    0.4   -0.1    1.8
     Hours                   0.7    1.6    1.4    2.0    0.0   -0.6    1.5
     Labor Composition5      0.5    0.6    0.7    0.3    0.3    0.5    0.3
   Capital services          3.4    3.8    3.3    5.8    3.3    1.4    1.9

Analytic ratio
  Capital services per
    hour of all persons      2.6    2.1    1.9    3.7    3.2    2.0    0.4


1.  Excludes government enterprises.
2.  Output per combined units of labor input and capital services.
3.  The growth rate of each input is weighted by its share of current dollar
    costs.
4.  Hours at work by age, education, and gender group are weighted by each
    group’s share of the total wage bill.
5.  Ratio of labor input to hours.


Table B.  Compound annual growth rates in output per hour of all persons 
and the contributions of capital intensity, labor composition, and 
multifactor productivity in the private nonfarm business and private 
business sectors for selected periods, 1987-2013

In percent



                            1987-  1987-  1990-  1995-  2000-  2007-  2012-
                            2013   1990   1995   2000   2007   2013   2013

Private nonfarm business1

Output per hour
of all persons               2.1    1.5    1.6    2.8    2.7    1.7    0.6

Contribution of
capital intensity2           0.9    0.7    0.7    1.2    1.0    0.7    0.1

Contribution of
labor composition3           0.3    0.4    0.5    0.2    0.2    0.3    0.2

Multifactor productivity4    0.9    0.5    0.5    1.4    1.4    0.6    0.3

  Contribution of R&D to
  multifactor productivity


Private business1

Output per hour
of all persons               2.2    1.7    1.6    3.0    2.7    1.7    1.0

Contribution of
capital intensity2           0.9    0.7    0.6    1.2    1.1    0.7    0.1

Contribution of
labor composition3           0.3    0.4    0.5    0.2    0.2    0.3    0.2

Multifactor productivity4    1.0    0.6    0.5    1.6    1.4    0.7    0.7

1. Excludes government enterprises.
2. Capital services per hour multiplied by capital's share of current
   dollar costs.
3. Labor composition multiplied by labor's share of current dollar costs.
4. Output per unit of combined labor and capital services.

Multifactor productivity plus contribution of capital intensity and
labor composition may not sum to output per hour due to independent
rounding.

Technical Notes

The simplified methodology for preparing preliminary estimates of MFP is 
outlined in the June 2005 Monthly Labor Review article, “Preliminary 
estimates of multifactor productivity growth” located at 
http://www.bls.gov/opub/mlr/2005/06/art3full.pdf. This methodology is
applied to both the private nonfarm business and private business sectors
and measures are calculated only for the most recent year. Data for all 
previous years are identical to the April 3, 2014 “Multifactor Productivity
Trends” news release (USDL-14-0529).

Capital Services  

Capital services are the services derived from the stock of physical 
assets and intellectual property assets. Capital services measures constructed
for the preliminary MFP measures are based on less detail only for the most
recent year. The preliminary measures consist of six asset types as opposed 
to the 90 asset types for fixed business equipment, structures, inventories,
land, and intellectual property products included in estimates for all 
previous years. The assets included in the preliminary estimates are
structures, fixed business equipment, intellectual property products,
inventories, rental residences, and land. Investments, depreciation, 
and capital income are estimated for each of these six aggregates. 
Capital services are calculated by a chained superlative Tornqvist 
index combining stocks of the six asset categories, weighted by
capital income shares.

Labor Input 

Labor input in private business and private nonfarm business is obtained
by chained superlative Tornqvist aggregation of the hours at work by all 
persons, classified by age, education, and gender with weights determined 
by each group’s share of the total wage bill. The labor composition index
estimates the effect of shifts in the age, education, and gender 
composition of the work force on the efficiency of hours worked. The
preliminary estimates of 2013 hours worked for the private nonfarm business 
and private business sectors are extrapolated from the hours worked reported
in the nonfarm business and business sectors, respectively, in the February 
6, 2014 “Productivity and Costs” news release (USDL-14-0167). The estimate 
of the 2013 labor composition index assumes relative wages across groups 
remain constant between 2012 and 2013 using the Current Population Survey
(CPS). 

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” 
http://www.bls.gov/bls/fesacp1121407.pdf and in “Changes in the Composition 
of Labor for BLS Multifactor Productivity Measures” 
http://www.bls.gov/mfp/mprlabor.pdf. 


Combined Inputs

Labor input and capital services are combined using chained superlative 
Tornqvist aggregation, applying weights that represent each component's 
share of total costs. The chained superlative Tornqvist index uses changing 
weights; the share in each year is averaged with the preceding year's share.
Total costs are defined as the value of output less a portion of taxes on
production and imports. Most taxes on production and imports, such as excise
taxes, are excluded from costs; however, property and motor vehicle taxes 
remain in total costs. 

Capital Intensity

Capital intensity is the ratio of capital services to hours worked in the
production process. The higher the capital to hours ratio, the more capital 
intensive the production process is. 

In a production process, profit maximizing/cost-minimizing firms adjust the 
factor proportions of capital and labor if the price of one factor is less 
than the other factor; there would be a tendency for the firms to substitute
the less expensive factor for the more expensive one. In the short run, 
changes in hours worked are more variable than changes in capital services.
Changes in hours worked in business cycles can result in volatility of the 
capital intensity ratio over short periods of time. In the long run an 
increase in wages relative to the price of capital will induce the firm to
substitute capital for labor, resulting in an increase in capital intensity. 

Rising labor costs are, in fact, an incentive for firms to introduce automated
production processes. Industry estimates of capital to hours ratios can be
obtained at http://www.bls.gov/mfp/mprdload.htm.

Output

Private business sector output is a chain-type, current-weighted index 
constructed after excluding from gross domestic product (GDP) the following
outputs: general government, nonprofit institutions, private households 
(including owner-occupied housing), and government enterprises. This release
presents data for the private business and private nonfarm business sectors. 
The private business sector accounted for approximately 74 percent of gross 
domestic product in 2012. Additionally, the private nonfarm business sector 
excludes farms from the private business sector, but includes agricultural 
services. Multifactor measures exclude government enterprises, while the BLS 
quarterly Productivity and Cost series include them. The output measures are
based on the National Income and Product Accounts (NIPA) data released by the
Bureau of Economic Analysis (BEA) on January 30, 2014 but do not reflect the
revised data released by BEA on February 28, 2014. The preliminary estimates
of 2013 output for the private nonfarm business and private business sectors 
are extrapolated from the output reported in the nonfarm business and business
sectors, respectively, in the February 6, 2014 “Productivity and Costs” news 
release (USDL-14-0167). 
 
Multifactor Productivity

Multifactor productivity measures describe the relationship between output 
in real terms and the inputs involved in its production. They do not measure
the specific contributions of labor or capital, or any other factor of 
production. Rather, multifactor productivity is designed to measure the joint
influences of technological change, efficiency improvements, returns to scale,
reallocation of resources, and other factors on economic growth, allowing for 
the effects of capital and labor. 

The multifactor productivity indexes for private business and private nonfarm
business are derived by dividing an output index by an index of capital 
services and labor input. The output indexes are computed as chained
superlative indexes (Fisher Ideal indexes) of components of real output.


Table 1. Private nonfarm business sector: productivity and related measures
for the 1987-2013 period1

Annual percent change from previous year

                                                       Combined           
               Output                                  units of           
       Output  per                                     labor in-              
       per     unit of Multi-                          put and   Capital      
       hour    capital factor                  Capital capital   services     
       of all  servic- Product-        Labor   Servic- servic-   per hour of  
Year   persons es      ivity2  Output3 Input4  es5     es6       all persons  

1988    1.7     0.7     1.0     4.6     3.5     3.8     3.6       0.9
1989    0.9    -0.3     0.1     3.7     3.3     4.1     3.6       1.3

1990    2.0    -1.8     0.3     1.5     0.1     3.4     1.2       3.9
1991    2.0    -3.5    -0.8    -0.5    -1.1     3.1     0.3       5.7
1992    4.3     1.5     2.5     4.1     1.0     2.5     1.5       2.7
1993    0.2    -0.1    -0.1     3.2     3.4     3.3     3.3       0.3
1994    1.0     0.9     0.6     4.7     4.1     3.7     4.0       0.1

1995    0.8    -0.9     0.3     3.6     2.7     4.5     3.3       1.7
1996    2.7    -0.3     1.4     4.6     2.2     4.8     3.1       3.0
1997    1.6    -0.2     0.7     5.3     4.1     5.5     4.5       1.9
1998    3.1    -0.9     1.6     5.3     2.4     6.3     3.7       4.0
1999    3.5    -0.9     1.8     5.8     2.6     6.7     3.9       4.4

2000    3.3    -2.0     1.4     4.4     1.2     6.5     2.9       5.5
2001    3.0    -3.8     0.5     0.8    -1.6     4.8     0.4       7.0
2002    4.4    -1.5     2.1     1.8    -2.0     3.3    -0.3       6.0
2003    3.7     0.4     2.4     3.1    -0.3     2.7     0.7       3.3
2004    3.1     1.9     2.8     4.5     1.2     2.5     1.7       1.2

2005    2.1     0.6     1.4     3.8     1.9     3.2     2.4       1.5
2006    1.0    -0.2     0.3     3.3     2.6     3.5     2.9       1.2
2007    1.7    -0.7     0.4     2.4     1.3     3.1     2.0       2.5
2008    0.8    -3.9    -1.3    -1.3    -1.4     2.7     0.0       4.8
2009    3.4    -5.0    -0.3    -4.1    -6.5     0.9    -3.8       8.8

2010    3.3     2.8     2.7     3.2     0.6     0.4     0.5       0.5
2011    0.4     1.5     0.7     2.5     2.3     1.0     1.8      -1.1
2012    1.5     2.3     1.5     3.8     2.7     1.4     2.2      -0.8
2013    0.6     0.3     0.3     2.3     1.9     1.9     1.9       0.3

See footnotes following table 4.
Source: Bureau of Labor Statistics



Table 2. Private business sector: productivity and related measures
for the 1987-2013 period1

Annual percent change from previous year

                                                       Combined           
               Output                                  units of           
       Output  per                                     labor in-              
       per     unit of Multi-                          put and   Capital      
       hour    capital factor                  Capital capital   services     
       of all  servic- Product-        Labor   Servic- servic-   per hour of  
Year   persons es      ivity2  Output3 Input4  es5     es6       all persons  

1988    1.5     0.3     0.7     4.3     3.4     4.0     3.6       1.2
1989    1.2    -0.2     0.4     3.9     3.2     4.0     3.5       1.3

1990    2.3    -1.6     0.6     1.6    -0.1     3.3     1.0       3.9
1991    1.9    -3.3    -0.8    -0.5    -1.0     2.9     0.3       5.4
1992    4.5     1.9     2.8     4.3     1.0     2.4     1.5       2.6
1993    0.2    -0.2    -0.2     3.0     3.2     3.2     3.2       0.4
1994    0.9     1.2     0.6     4.9     4.5     3.7     4.2      -0.3

1995    0.4    -1.0     0.0     3.2     2.7     4.3     3.2       1.4
1996    3.0     0.1     1.8     4.7     2.0     4.6     2.9       3.0
1997    1.9     0.0     0.9     5.3     3.9     5.3     4.4       1.8
1998    3.1    -0.8     1.6     5.2     2.3     6.1     3.5       4.0
1999    3.7    -0.7     2.0     5.8     2.4     6.5     3.7       4.4

2000    3.4    -1.7     1.6     4.5     1.2     6.3     2.9       5.3
2001    3.0    -3.8     0.5     0.7    -1.8     4.7     0.2       7.0
2002    4.4    -1.3     2.1     1.8    -1.9     3.1    -0.3       5.7
2003    3.9     0.6     2.6     3.2    -0.4     2.6     0.6       3.3
2004    3.2     1.9     2.9     4.6     1.1     2.6     1.6       1.3

2005    2.1     0.6     1.4     3.9     1.9     3.3     2.4       1.5
2006    1.0    -0.3     0.4     3.2     2.4     3.6     2.9       1.4
2007    1.6    -0.8     0.3     2.2     1.3     3.0     1.9       2.4
2008    0.8    -3.6    -1.2    -1.2    -1.4     2.5     0.0       4.6
2009    3.5    -4.6    -0.1    -3.9    -6.5     0.7    -3.9       8.5

2010    3.2     2.8     2.6     3.2     0.6     0.4     0.5       0.5
2011    0.3     1.2     0.6     2.4     2.2     1.2     1.8      -0.9
2012    1.5     2.2     1.4     3.7     2.7     1.5     2.3      -0.7
2013    1.0     0.7     0.7     2.5     1.8     1.9     1.8       0.4

See footnotes following table 4.
Source: Bureau of Labor Statistics



Table 3. Private nonfarm business sector: indexes of productivity and related
measures, 1987-2013

Indexes 2009=100

                                                       Combined           
               Output                                  units of           
       Output  per                                     labor in-              
       per     unit of Multi-                          put and   Capital      
       hour    capital factor                  Capital capital   services     
       of all  servic- Product-        Labor   Servic- servic-   per hour of  
Year   persons es      ivity2  Output3 Input4  es5     es6       all persons  

1987    60.9    122.6   82.6    53.3    78.7    43.5    64.5      49.7
1988    62.0    123.5   83.4    55.7    81.4    45.1    66.8      50.2
1989    62.5    123.1   83.5    57.8    84.1    47.0    69.2      50.8

1990    63.8    120.8   83.8    58.7    84.2    48.6    70.0      52.8
1991    65.0    116.5   83.2    58.4    83.2    50.1    70.2      55.8
1992    67.8    118.3   85.3    60.8    84.1    51.4    71.3      57.3
1993    68.0    118.2   85.2    62.7    86.9    53.1    73.6      57.5
1994    68.7    119.3   85.7    65.6    90.5    55.0    76.6      57.6

1995    69.2    118.2   85.9    68.0    92.9    57.5    79.1      58.5
1996    71.1    117.9   87.2    71.1    95.0    60.3    81.5      60.3
1997    72.2    117.6   87.7    74.8    98.8    63.6    85.3      61.4
1998    74.4    116.6   89.2    78.8   101.2    67.6    88.4      63.9
1999    77.0    115.6   90.8    83.4   103.9    72.1    91.8      66.7

2000    79.6    113.2   92.1    87.0   105.2    76.9    94.5      70.3
2001    81.9    108.9   92.5    87.7   103.5    80.6    94.9      75.2
2002    85.6    107.3   94.4    89.3   101.4    83.3    94.5      79.8
2003    88.7    107.7   96.7    92.1   101.1    85.5    95.2      82.4
2004    91.5    109.8   99.5    96.3   102.4    87.7    96.8      83.4

2005    93.4    110.4  100.9    99.9   104.3    90.5    99.1      84.6
2006    94.3    110.2  101.2   103.2   107.0    93.7   102.0      85.6
2007    96.0    109.4  101.6   105.7   108.5    96.6   104.0      87.7
2008    96.7    105.2  100.3   104.3   106.9    99.1   104.0      91.9
2009   100.0    100.0  100.0   100.0   100.0   100.0   100.0     100.0

2010   103.3    102.8  102.7   103.2   100.6   100.4   100.5     100.5
2011   103.7    104.3  103.4   105.8   102.9   101.4   102.3      99.4
2012   105.3    106.8  105.0   109.8   105.7   102.8   104.6      98.6
2013   105.9    107.2  105.4   112.3   107.7   104.8   106.6      98.8

See footnotes following table 4.
Source: Bureau of Labor Statistics



Table 4. Private business sector: indexes of productivity and related
measures, 1987-2013

Indexes 2009=100

                                                       Combined           
               Output                                  units of           
       Output  per                                     labor in-              
       per     unit of Multi-                          put and   Capital      
       hour    capital factor                  Capital capital   services     
       of all  servic- Product-        Labor   Servic- servic-   per hour of  
Year   persons es      ivity2  Output3 Input4  es5     es6       all persons  

1987    60.2    119.5   81.4    53.2    79.6    44.5    65.3      50.3
1988    61.1    119.9   82.0    55.5    82.3    46.3    67.7      51.0
1989    61.8    119.7   82.3    57.6    85.0    48.2    70.0      51.6

1990    63.2    117.8   82.8    58.6    84.9    49.7    70.7      53.7
1991    64.4    113.8   82.1    58.3    84.0    51.2    71.0      56.6
1992    67.3    116.0   84.4    60.8    84.9    52.4    72.0      58.0
1993    67.4    115.7   84.2    62.6    87.6    54.1    74.3      58.3
1994    68.0    117.1   84.8    65.6    91.5    56.0    77.4      58.1

1995    68.3    115.9   84.7    67.7    94.0    58.4    79.9      58.9
1996    70.4    116.0   86.2    70.9    95.8    61.1    82.2      60.7
1997    71.7    116.0   87.0    74.7    99.6    64.4    85.8      61.8
1998    73.9    115.0   88.4    78.6   101.9    68.3    88.9      64.3
1999    76.7    114.3   90.2    83.1   104.3    72.8    92.2      67.1

2000    79.3    112.3   91.6    86.9   105.6    77.4    94.8      70.6
2001    81.7    108.0   92.1    87.5   103.7    81.0    95.1      75.6
2002    85.2    106.7   94.0    89.1   101.8    83.5    94.8      79.9
2003    88.5    107.3   96.5    91.9   101.4    85.7    95.3      82.5
2004    91.4    109.4   99.2    96.1   102.5    87.9    96.9      83.6

2005    93.3    110.0  100.6    99.8   104.5    90.8    99.2      84.9
2006    94.3    109.6  101.0   103.1   107.0    94.0   102.0      86.0
2007    95.8    108.7  101.3   105.3   108.4    96.9   104.0      88.1
2008    96.6    104.9  100.1   104.1   106.9    99.3   104.0      92.1
2009   100.0    100.0  100.0   100.0   100.0   100.0   100.0     100.0

2010   103.2    102.8  102.6   103.2   100.6   100.4   100.5     100.5
2011   103.6    104.0  103.2   105.7   102.9   101.6   102.4      99.6
2012   105.1    106.3  104.7   109.6   105.7   103.1   104.7      98.8
2013   106.2    107.0  105.5   112.4   107.6   105.0   106.6      99.2

See footnotes following table 4.
Source: Bureau of Labor Statistics



Footnotes, Tables 1-4

Source: The Bureau of Labor Statistics (BLS) develops productivity measures
	using output and compensation data published by the Bureau of Economic 
	Analysis (BEA), hours data published by other BLS programs, and capital
	data supplied by BEA and U.S. Department of Agriculture. Also see 
	Technical Notes in this release.

(1) The private business sector covers gross domestic product with the 
    exception of the output of general government, government enterprises, 
    non-profit institutions, the rental value of owner-occupied real estate,
    and the output of paid employees of private households. The private 
    nonfarm business sector further excludes farms but includes agricultural 
    services.

(2) Output per combined units of labor input and capital services.

(3) Gross domestic product originating in the sector, chained superlative 
    index.

(4) Index of hours at work of all persons including employees, 
    proprietors, and unpaid family workers, classified by age, education, 
    and gender. This chained superlative index is computed by combining 
    changes in the hours of each age, education, and gender group weighted
    by each group’s share of the total wage bill. 

(5) A measure of the flow of capital services used in the sector. Capital
    services measure the services derived from the stock of physical assets
    and intellectual property assets. The assets included are fixed business
    equipment, structures, intellectual property products, inventories, and 
    land.

(6) The growth rates of labor input and capital services are combined by 
    weighting with their respective shares of current dollar costs, and 
    aggregating into a chained superlative index.


Last Modified Date: July 09, 2014
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