Economic News Release

Multifactor Productivity Trends News Release

For release 10:00 am    (EDT) Tuesday, June 23, 2015	      USDL-15-1235
Technical information:	(202) 691-5606  •  mfpweb@bls.gov  •  www.bls.gov/mfp
Media contact:	        (202) 691-5902  •  PressOffice@bls.gov 
PRELIMINARY MULTIFACTOR PRODUCTIVITY TRENDS – 2014

Private nonfarm business sector multifactor productivity increased at a
0.8 percent annual rate in 2014, the U.S. Bureau of Labor Statistics 
reported today. (See chart 1, table A.) This 2014 gain reflected a 
3.1-percent increase in output and a 2.3-percent increase in the combined
inputs of capital and labor. Capital services grew by 2.1 percent and 
labor input – which is the combined effect of hours worked and labor 
composition – grew by 2.4 percent. The 2.1-percent increase in capital 
services was the largest annual increase since a 2.6-percent increase in
2008. Capital services per hour of all persons continued on a steady 
decline of 0.1 percent in 2014; the fourth consecutive decline in this 
measure. (See table 1.)

Multifactor productivity measures the change in output relative to the 
change in capital and labor inputs used to produce that output. It is 
designed to measure the joint influences of technological change, 
efficiency improvements, returns to scale, reallocation of resources, 
and other factors of economic growth, accounting for the effects of 
capital and labor. Multifactor productivity annual measures differ from
BLS quarterly labor productivity (output per hour worked) measures because
the former also include the influences of capital services and shifts in 
the composition of the workforce. Additionally, much of the source data 
needed to construct multifactor productivity measures are not available 
on a quarterly basis.

Private business sector multifactor productivity grew by 0.6 percent in 
2014. A 2.9-percent increase in output and a 2.3-percent increase in the
combined inputs of capital and labor contributed to the multifactor 
productivity gain in 2014. (See table A, 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 2014. For the 2007-2014 period, multifactor
productivity grew 0.5 percent on average as combined inputs increased 0.7 
percent and output increased 1.3 percent. The increase in combined inputs 
reflected an increase in labor input of 0.3 percent along with a 1.5-percent
increase in capital services. (See table A, 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. Prior to 1995, multifactor 
productivity and the contributions of capital intensity to labor productivity
grew 0.5 percent and 0.7 percent respectively. The contribution of labor 
composition grew 0.4 percent, leading to an average annual growth rate of 1.6
percent in output per hour. 

The contributions to labor productivity growth differed from the 1995-2000 
and 2000-2007 periods, as upward shifts in multifactor productivity and 
capital intensity resulted in stronger output per hour growth. For the 
2007-2014 period, the contribution of capital intensity and the contribution
of labor composition amounted to 0.6 percent and 0.3 percent, respectively.
Additionally, the growth in multifactor productivity of 0.5 percent 
contributed to an overall growth of output per hour of 1.4 percent. 
(See chart 2, table B.) 

In 2014, annual labor productivity growth was less than half the average 
annual rate of change from 1987 to 2014 for the fourth consecutive year.
The contributions of capital intensity and labor composition in the private
nonfarm business sector in 2014 were little changed. The main component of 
the 0.8-percent increase in output per hour was the 0.8-percent increase in
multifactor productivity. (See table B, table 1.)

The methodology for measuring preliminary multifactor productivity for 2014 
is a simplified version of the methodology that BLS uses when more detailed 
data are available. Measures will be revised early in the next calendar year. 

Table A.  Compound average growth rates for productivity, output, and inputs
in the private nonfarm business and private business sectors for selected
periods,1987-2014

In percent


                            1987-  1987-  1990-  1995-  2000-  2007-  2013-
                            2014   1990   1995   2000   2007   2014   2014

Private nonfarm business1

Productivity
  Multifactor Productivity2  0.9    0.5    0.5    1.4    1.4    0.5    0.8
    Output per hour of all
      persons                2.1    1.6    1.6    2.9    2.6    1.4    0.8
    Output per unit of
      capital services      -0.4   -0.5   -0.4   -0.8   -0.4   -0.2    0.9


Output                       2.9    3.3    3.0    5.0    2.8    1.3    3.1


Inputs

  Combined inputs3           2.0    2.8    2.4    3.6    1.4    0.7    2.3
   Labor input4              1.3    2.3    2.0    2.4    0.5    0.3    2.4
     Hours                   0.8    1.7    1.3    2.1    0.2   -0.2    2.2
     Labor Composition5      0.5    0.6    0.7    0.3    0.3    0.5    0.2
   Capital services          3.4    3.8    3.4    5.9    3.3    1.5    2.1

Analytic ratio
  Capital services per
    hour of all persons      2.5    2.1    2.0    3.7    3.1    1.6   -0.1


Private business1

Productivity
  Multifactor Productivity2  1.0    0.6    0.5    1.6    1.4    0.5    0.6
    Output per hour of all
      persons                2.1    1.7    1.6    3.0    2.7    1.4    0.6
    Output per unit of
      capital services      -0.4   -0.5   -0.3   -0.6   -0.4   -0.2    0.8


Output                       2.9    3.3    2.9    5.1    2.8    1.3    2.9


Inputs

  Combined inputs3           1.9    2.7    2.4    3.4    1.4    0.7    2.3
   Labor input4              1.2    2.1    2.1    2.3    0.5    0.3    2.4
     Hours                   0.8    1.5    1.4    2.0    0.1   -0.1    2.3
     Labor Composition5      0.5    0.6    0.7    0.3    0.3    0.5    0.1
   Capital services          3.3    3.8    3.2    5.7    3.2    1.4    2.1

Analytic ratio
  Capital services per
    hour of all persons      2.5    2.2    1.8    3.7    3.1    1.6   -0.2


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, 1987-2014

In percent



                            1987-  1987-  1990-  1995-  2000-  2007-  2013-
                            2014   1990   1995   2000   2007   2014   2014

Private nonfarm business1

Output per hour
of all persons               2.1    1.6    1.6    2.9    2.6    1.4    0.8

Contribution of
capital intensity2           0.8    0.7    0.7    1.2    1.0    0.6    0.0

Contribution of
labor composition3           0.3    0.4    0.4    0.2    0.2    0.3    0.1

Multifactor productivity4    0.9    0.5    0.5    1.4    1.4    0.5    0.8

  Contribution of R&D to
  multifactor productivity


Private business1

Output per hour
of all persons               2.1    1.7    1.6    3.0    2.7    1.4    0.6

Contribution of
capital intensity2           0.8    0.7    0.6    1.2    1.0    0.6   -0.1

Contribution of
labor composition3           0.3    0.4    0.5    0.2    0.2    0.3    0.1

Multifactor productivity4    1.0    0.6    0.5    1.6    1.4    0.5    0.6

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 March 26, 2015 “Multifactor Productivity
Trends” news release (USDL-15-0480).

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 total wages. 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 2014
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 5, 2015 “Productivity and
Costs” news release (USDL-14-0157). 

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, 2013” 
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 when the price of one factor is less
than the other factor; there is a tendency for 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 2013. Additionally, the private nonfarm business sector 
excludes farms from the private business sector, but includes agricultural 
services. Multifactor productivity 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, 2015 but do 
not reflect the revised data released by BEA on February 27, 2015. The 
preliminary estimates of 2015 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 5, 2015
“Productivity and Costs” news release (USDL-15-0157). 
 
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 1987-2014 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     3.4     4.1     3.6       1.2

1990    2.1    -1.8     0.4     1.5     0.0     3.5     1.1       4.0
1991    2.0    -3.5    -0.8    -0.5    -1.1     3.0     0.2       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     1.0     0.7     4.7     4.1     3.6     4.0       0.0

1995    0.8    -0.8     0.3     3.6     2.6     4.4     3.2       1.6
1996    2.7    -0.2     1.5     4.6     2.1     4.8     3.0       2.9
1997    1.6    -0.2     0.7     5.3     4.1     5.5     4.5       1.8
1998    3.1    -0.8     1.7     5.3     2.4     6.2     3.6       4.0
1999    3.4    -1.0     1.7     5.6     2.5     6.7     3.8       4.4

2000    3.4    -2.0     1.5     4.4     1.1     6.5     2.8       5.5
2001    3.0    -3.7     0.5     0.9    -1.6     4.8     0.3       7.0
2002    4.3    -1.5     2.0     1.8    -1.8     3.3    -0.2       5.9
2003    3.5     0.4     2.3     3.2    -0.1     2.7     0.8       3.1
2004    3.0     2.0     2.7     4.5     1.3     2.5     1.7       1.0

2005    1.9     0.6     1.3     3.8     2.1     3.2     2.4       1.3
2006    0.9    -0.2     0.3     3.3     2.7     3.5     3.0       1.1
2007    1.7    -0.7     0.4     2.4     1.4     3.1     2.0       2.4
2008    0.8    -3.8    -1.3    -1.3    -1.4     2.6     0.0       4.8
2009    3.4    -4.9    -0.2    -4.1    -6.5     0.9    -3.9       8.8

2010    3.2     2.8     2.8     3.2     0.4     0.4     0.4       0.4
2011    0.0     1.1     0.0     2.2     2.9     1.1     2.3      -1.1
2012    0.9     1.8     0.8     3.3     3.0     1.5     2.4      -0.8
2013    0.9     1.0     0.9     2.7     1.8     1.7     1.8      -0.1
2014    0.8     0.9     0.8     3.1     2.4     2.1     2.3      -0.1

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



Table 2. Private business sector: productivity and related measures
for the 1987-2014 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    1.1    -0.2     0.3     3.9     3.3     4.0     3.5       1.3

1990    2.4    -1.6     0.7     1.6    -0.2     3.3     1.0       4.1
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       2.5
1993    0.2    -0.2    -0.2     3.0     3.1     3.1     3.1       0.4
1994    0.9     1.3     0.7     4.9     4.5     3.5     4.2      -0.5

1995    0.4    -0.9     0.0     3.2     2.6     4.1     3.1       1.4
1996    3.1     0.1     1.8     4.7     1.9     4.5     2.8       2.9
1997    1.9     0.1     0.9     5.3     3.9     5.3     4.4       1.8
1998    3.2    -0.8     1.6     5.2     2.2     6.0     3.5       4.0
1999    3.6    -0.8     1.9     5.6     2.3     6.5     3.6       4.4

2000    3.6    -1.7     1.7     4.5     1.1     6.3     2.8       5.3
2001    3.1    -3.7     0.6     0.8    -1.8     4.6     0.2       7.0
2002    4.2    -1.3     2.0     1.8    -1.8     3.1    -0.2       5.6
2003    3.7     0.6     2.5     3.2    -0.2     2.6     0.7       3.1
2004    3.1     2.0     2.8     4.5     1.2     2.5     1.7       1.2

2005    2.0     0.6     1.3     3.8     2.0     3.2     2.5       1.4
2006    1.0    -0.3     0.3     3.2     2.5     3.5     2.9       1.2
2007    1.5    -0.8     0.3     2.2     1.3     3.0     1.9       2.3
2008    0.8    -3.6    -1.2    -1.2    -1.3     2.5     0.0       4.5
2009    3.5    -4.6     0.0    -3.9    -6.5     0.7    -3.9       8.5

2010    3.2     2.8     2.7     3.2     0.5     0.4     0.5       0.4
2011   -0.1     0.9    -0.1     2.1     2.9     1.3     2.3      -0.9
2012    0.8     1.6     0.7     3.2     2.9     1.5     2.4      -0.8
2013    1.2     1.2     1.1     2.9     1.7     1.7     1.7       0.0
2014    0.6     0.8     0.6     2.9     2.4     2.1     2.3      -0.2

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



Table 3. Private nonfarm business sector: indexes of productivity and related
measures, 1987-2014

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    61.2    121.7   82.6    53.4    78.5    43.8    64.6      50.3
1988    62.2    122.6   83.4    55.8    81.2    45.5    66.9      50.7
1989    62.7    122.2   83.5    57.9    84.0    47.4    69.3      51.3

1990    64.1    119.9   83.8    58.8    83.9    49.0    70.1      53.4
1991    65.3    115.7   83.2    58.4    83.0    50.5    70.3      56.4
1992    68.1    117.5   85.3    60.8    83.9    51.8    71.3      58.0
1993    68.3    117.4   85.2    62.8    86.7    53.5    73.7      58.1
1994    69.0    118.6   85.8    65.7    90.3    55.4    76.6      58.1

1995    69.5    117.7   86.1    68.1    92.7    57.8    79.1      59.0
1996    71.4    117.5   87.3    71.2    94.6    60.6    81.5      60.8
1997    72.6    117.3   87.9    74.9    98.5    63.9    85.2      61.9
1998    74.9    116.3   89.4    78.9   100.8    67.9    88.3      64.4
1999    77.4    115.1   90.9    83.3   103.4    72.4    91.7      67.2

2000    80.0    112.8   92.3    87.0   104.5    77.1    94.2      70.9
2001    82.5    108.6   92.8    87.7   102.8    80.7    94.5      75.9
2002    86.0    107.0   94.7    89.3   100.9    83.4    94.3      80.4
2003    89.1    107.5   96.9    92.1   100.8    85.7    95.1      82.8
2004    91.7    109.6   99.5    96.2   102.1    87.8    96.7      83.7

2005    93.5    110.3  100.9    99.9   104.2    90.6    99.0      84.8
2006    94.3    110.1  101.2   103.2   107.0    93.7   102.0      85.7
2007    95.9    109.4  101.6   105.6   108.5    96.6   104.0      87.7
2008    96.7    105.2  100.2   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   103.2    102.8  102.8   103.2   100.4   100.4   100.4     100.4
2011   103.2    103.9  102.8   105.5   103.3   101.5   102.7      99.3
2012   104.2    105.8  103.7   109.0   106.4   103.1   105.2      98.5
2013   105.1    106.8  104.6   111.9   108.4   104.8   107.0      98.4
2014   105.9    107.8  105.4   115.4   111.0   107.1   109.5      98.3

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



Table 4. Private business sector: indexes of productivity and related
measures, 1987-2014

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    60.3    118.6   81.4    53.3    79.5    44.9    65.4      50.9
1988    61.3    119.0   82.0    55.6    82.2    46.7    67.8      51.5
1989    62.0    118.8   82.3    57.7    84.8    48.6    70.2      52.2

1990    63.5    116.9   82.8    58.7    84.6    50.2    70.8      54.3
1991    64.7    113.0   82.1    58.3    83.8    51.6    71.1      57.2
1992    67.6    115.1   84.4    60.8    84.7    52.8    72.1      58.7
1993    67.7    114.9   84.2    62.6    87.3    54.5    74.4      58.9
1994    68.3    116.5   84.8    65.7    91.3    56.4    77.5      58.6

1995    68.6    115.4   84.8    67.8    93.7    58.8    79.9      59.4
1996    70.7    115.6   86.4    71.0    95.5    61.4    82.2      61.2
1997    72.0    115.6   87.2    74.8    99.3    64.7    85.8      62.3
1998    74.3    114.7   88.6    78.7   101.5    68.6    88.8      64.8
1999    77.0    113.8   90.3    83.1   103.8    73.0    92.0      67.6

2000    79.7    111.9   91.8    86.8   105.0    77.6    94.6      71.2
2001    82.2    107.8   92.3    87.5   103.1    81.2    94.8      76.2
2002    85.7    106.4   94.2    89.1   101.2    83.7    94.5      80.5
2003    88.8    107.1   96.6    91.9   101.0    85.9    95.2      83.0
2004    91.6    109.2   99.3    96.1   102.3    88.0    96.8      83.9

2005    93.4    109.8  100.6    99.8   104.4    90.9    99.2      85.1
2006    94.3    109.5  101.0   103.1   107.0    94.1   102.1      86.1
2007    95.8    108.7  101.2   105.3   108.4    96.9   104.0      88.1
2008    96.6    104.8  100.0   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  102.7   103.2   100.5   100.4   100.5     100.4
2011   103.1    103.7  102.6   105.4   103.4   101.6   102.8      99.4
2012   103.9    105.4  103.3   108.7   106.5   103.2   105.2      98.7
2013   105.2    106.6  104.5   111.8   108.3   104.9   107.0      98.7
2014   105.8    107.4  105.2   115.1   111.0   107.1   109.5      98.4

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 total wages. 

(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. 

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



Last Modified Date: June 23, 2015
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