Productivity is a key determinant of wages and ultimately income and corporate profits. Multifactor productivity is a measure of economic performance that compares the amount of goods and services produced (output) to the amount of combined inputs used to produce those goods and services. Inputs can include labor, capital, energy, materials, and purchased services. Growing and recruiting businesses with high productivity creates higher wage opportunities for local workers. In order to improve the Memphis labor market, economic development efforts should focus on upgrading the workforce and increasing the number of high wage job opportunities.
The following presentation was put together by Sparks Bureau of Business and Economic Research Intern Christopher Bailey. It reports multifactor productivity data for Shelby County manufacturing industries between 2014 – 2015.