Article: Preliminary estimates of multifactor productivity growth: final multifactor productivity measures take more than a year to complete; using a simplified methodology and preliminary data, it is estimated that private business multifactor productivity grew 3.1 percent in 2003 and 3.3 percent in 2004.(Multifactor Productivity)

Labor productivity growth supports long-term improvements in standards of living. Productivity can increase because of investments in equipment and structures, a more educated and experienced workforce, and improvements in technology. The BLS multifactor productivity (MFP) measures are designed to isolate the effects on labor productivity of capital growth and of the changing composition of the labor force. These input effects are reported separately, and multifactor productivity growth represents the unexplained portion of labor productivity growth.

The multifactor productivity measures are designed along the lines of Solow's method of growth accounting. (1) ...

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