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Figure 6.14 U.S. Total Factor Productivity, 1997–2012
Total factor productivity increased much more in the manufacturing industries than in the overall private business sector over the period 1997–2012. In particular, durable goods manufacturers saw a 44% increase in total factor productivity, enabling these firms to increase production while decreasing the number of laborers. As a result, unemployment rose even as output increased. (Data from U.S. Bureau of Labor Statistics.)