2009 Multifactor Productivity Trends — 2011-03-30

Private nonfarm business sector multifactor productivity grew at a modest 0.1 percent annual rate in 2009, the U.S. Bureau of Labor Statistics reported today. (See chart 1, table A.) In 2009, the gain in multifactor productivity reflected decreases of 3.7 percent in output and 3.8 percent in the combined inputs of capital and labor. Capital services grew by 1.1 percent, and labor input which is the combined effect of hours worked and labor composition � fell 6.3 percent. (See table A, table 1.) For both the private nonfarm business and private business sectors, the declines recorded in output, combined inputs of capital and labor, and labor input were the largest in the series, which began in 1987. Growth in capital services was also the slowest recorded since the series began. Multifactor productivity measures the change in output per unit of combined capital and labor.