Multifactor productivity in U.S. down for first time since 2009Staff Writer |
Working in America Capital services grew by 2.4 percent
Private nonfarm business sector multifactor productivity decreased at a 0.2-percent annual rate in 2016, the U.S. Bureau of Labor Statistics reported.
Capital services grew by 2.4 percent and labor input–which is the combined effect of hours worked and labor composition–grew by 1.6 percent. This was the first decline in multifactor productivity growth since 2009.
Multifactor productivity is calculated by dividing an index of real output by an index of combined units of labor input and capital services.
Multifactor productivity annual measures differ from BLS quarterly labor productivity (output per hour worked) measures because the former also includes the influences of capital services and shifts in the composition of theworkforce.
Measures for the most recent year of this release are preliminary estimates.
Private business sector multifactor productivity decreased at a 0.1-percent annual rate in 2016.
A 1.8-percent increase in output and a 1.9-percent increase in the combined inputs of capital and labor resulted in the multifactor productivity decline in 2016. ■
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