From the beginning of 1960 until the fall of 1973, labor productivity in the nonfarm business sector grew about 3 percent per year.
Productivity growth then fell to an annual pace of 1-1/2 percent, likely in response to the supply shocks that hit the world economy during that period, higher inflation, a rise in uncertainty about the prospects for future economic growth, and public policy decisions that diverted resources from activities that would have generated more measured output.