The increase in total hours worked has also contributed to the decline in MFP since the beginning of this decade. Total hours worked have increased on average almost 10% per year since 2000-01, with an increase of over 20% in 2005-06. This growth in hours worked has been generated by a significant growth in employment in the industry. These new workers may not be as productive as incumbent workers and their output could be lower. Hence, measured productivity might also be lower.
There is a possibility that a high proportion of these additional employees are involved in the construction of new mines, or extending existing ones, rather than in mining type activity. The strong growth in the non-dwelling construction component of gross fixed capital formation in respect of the Mining industry would tend to support this hypothesis. It can be difficult to adequately capture this type of activity in the output measures.