Federal Reserve Economic Data

Today we look at total factor productivity, which is a measure of economic efficiency that captures how effectively an economy uses its inputs to produce outputs. TFP reflects technological progress through innovation and adoption of new technologies, allocation of resources, and other factors that boost the overall economic product beyond just increases in labor and capital.

Improvement in TFP is crucial because it drives long-term economic growth and raises living standards. The FRED graph above shows two interesting observations related to this.

First, over the long run, US TFP has grown significantly: Between 1955 and 2015, it improved by about 55%. This increase represents a substantial improvement in the nation’s ability to generate economic output from its resources.

However, the rate of TFP growth has slowed noticeably in recent decades. Particularly since 2005, TFP has increased by only about 5%. This slowdown is a concern for economists and policymakers because it suggests a potential decline in the pace of innovation or the economy’s ability to adopt new technologies.

Second, the graph also clearly shows that TFP tends to significantly drop during recessions, indicated by the shaded areas. This doesn’t necessarily mean that the economy literally “forgets” how to produce goods and services efficiently. Instead, these dips reflect several economic realities during downturns: For example, capacity utilization often decreases, leading to less-efficient use of existing resources. As the economy recovers, TFP typically rebounds, suggesting that these efficiency losses are generally temporary rather than permanent losses of productive knowledge or capability.

How this graph was created: Search FRED for “total factor productivity” and click on the series for the United States.

Suggested by Aakash Kalyani.

The FRED Blog has discussed the impact that shortages in childcare services had on women’s employment during and immediately after the COVID-19 induced recession. Today we discuss the potential role that either remote or hybrid work might play in boosting the participation of women in the labor force.

The FRED graph above shows the labor force participation rate of three groups of women: White women (the solid blue line); Black or African American women (the solid red line); and Hispanic or Latino women (the solid green line). The data are reported by the U.S. Bureau of Labor Statistics and currently do not include information on any other racial or ethnic groups. We limited the date range of the data between Q1 2014 and Q1 2024 and added custom (dotted) lines anchored at the pre-recession peak of Q4 2019 to make the analysis easier.

The bounce-back in the labor force participation rates of women was gradual and, in the case of Black or African American women and Hispanic or Latino women, it exceeded its 2019 peak value. Recent research by Maria Tito at the Board of Governors of the Federal Reserve System may provide a potential explanation.

Her analysis suggests that women between the ages of 25 and 54 have been capitalizing on the ability to work remotely some or all of the time. Their flows in and out of the labor force and from unemployed to employed status changed after the COVID-19 pandemic. However, the recent rise in the overall labor force participation rate of women mostly reflects gains in occupations that cannot be performed remotely. Thus, even though labor markets are likely to be permanently influenced by remote and hybrid work options, more research into the impact of those options is needed.

How this graph was created: Search FRED for and select “Labor Force Participation Rate – 20 Yrs. & over, White Women” Click on the orange button “Edit Graph.” Select the tab “Add Line” and search for “Labor Force Participation Rate – 20 Yrs. & over, Black or African American Women.” Click on “Add data series” and repeat the previous step to add “Labor Force Participation Rate – 20 Yrs. & over, Hispanic or Latino Women” to the graph. Next, use the “Create user-define line” option to add the horizontal lines. Last, use “Format” tab to customize the line styles.

Suggested by Christina Charie and Diego Mendez-Carbajo.

When it comes to data delivery, FRED wholeheartedly embraces the motto of the Olympics: “Faster, Higher, Stronger – Together!”

Although the FRED Blog team won’t be able to travel to Paris, France, to attend the 33rd Summer Olympic Games, we can talk about the Olympians and Parisiens right here at home.

And, of course, we’re talking about the residents of Olympia, Washington, and Paris (in both Texas and Tennessee).

The FRED map above shows the median number of days a real estate listing spent on the market from the time it was listed for sale until the sale was reported as pending or closed or the property was no longer for sale.*

First, hover over Olympia-Tumwater, Washington, in the map. You can see that, as of June 2024, the median time it took for a real estate property there to exchange hands was 30 days: That is, half did so in 30 or fewer days and the other half did so in 30 or more days. By contrast, the median time a real estate property stayed on the market in Paris, Texas, was 58 days. In Paris, Tennessee, it was 60 days. So, in the parlance of the Games, we have our gold, silver, and bronze medals—at least for this race.

How this map was created: Search FRED for “Housing Inventory: Median Days on Market Year-Over-Year in Olympia-Tumwater, WA (CBSA)” and click the “View Map” option.

*The data are reported by Realtor.com. You can learn more about data geographies in FRED here.

Suggested by Diego Mendez-Carbajo.