2011 (Preliminary) Multifactor Productivity Trends — 2012-05-09

Private nonfarm business sector multifactor productivity increased at a 0.5 percent annual rate in 2011, the U.S. Bureau of Labor Statistics reported today. (See chart 1, table A.) The multifactor productivity gain in 2011 reflected a 2.4 percent increase in output and a 1.9 percent increase in the combined inputs of capital and labor. The increase in combined inputs of capital and labor was the largest annual rate of growth since 2006. (See table 1.) Capital services grew by 1.7 percent and labor input � which is the combined effect of hours worked and labor composition � grew by 2.0 percent, the largest gain in the series since 2006. Capital services per hour of all persons were unchanged in 2011 for the private nonfarm business sector. Prior to this year, this measure had increased each year with the exception of 1994, when it was also unchanged.