2022 Total Factor Productivity for Major Industries — 2023-11-21

Total factor productivity (TFP) increased in 9 out of 21 major industries in 2022, the U.S. Bureau of Labor Statistics (BLS) reported today, led by service providing industries. Many of the TFP increases in 2022 were driven by strong output growth outpacing increases in the combined inputs of capital, labor, energy, materials, and services. Output increased in 17 of 21 major industries in 2022. Over the longer 2019-22 time period, 13 of the 21 industries had positive or no output growth. This illustrates that output in the remaining 8 industries is still below pre-COVID-19 pandemic levels. (See tables 1 and 3.) Combined inputs increased in 19 of the 21 industries in 2022. All goods producing industries experienced combined input growth greater than output growth, leading to declining TFP for these industries. (See table 1.) Over the 2019-22 time period, labor input has grown in 14 of 21 industries, demonstrating that these industries have recovered labor losses from 2020.