Multifactor productivity

What is Multifactor productivity?

Multifactor productivity meaning in Labor terms is For the private business and private nonfarm business sectors, the growth rate of multifactor productivity is measured as the growth rate of output less the growth rate of combined inputs of labor and capital. Labor is measured by a weighted average of the number of hours worked classified by education, work experience, and gender. Capital services measure the flow of services from the stocks of equipment and software, structures, land, and inventories. For the manufacturing sector, multifactor productivity is the growth rate of output less the combined inputs of labor, capital, and intermediate purchases. Labor is measured by the number of hours worked. Capital services measure the flow of services from the stocks of equipment and software, structures, land, and inventories. Intermediate purchases are composed of materials, fuels, electricity, and purchased services.

 

reference: Glossary: U.S. Bureau of Labor Statistics – United States Department of Labor

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