5260.0.55.002 - Estimates of Industry Multifactor Productivity, 2014-15  
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 04/12/2015   
   Page tools: Print Print Page Print all pages in this productPrint All RSS Feed RSS Bookmark and Share Search this Product

ANALYSIS OF RESULTS

MARKET SECTOR

On an hours worked basis, market sector multifactor productivity (MFP) grew 0.3% in 2014-15 reflecting a 2.2% increase in gross value added and a 1.9% increase in total labour and capital inputs. Capital services grew 3.3% and hours worked grew 0.8%. On a quality adjusted hours worked basis, MFP fell 0.1% in 2014-15.

In 2014-15, labour productivity grew 1.3% on an hours worked basis. On a quality adjusted hours worked basis, labour productivity grew 0.7%. The weaker growth in quality adjusted labour productivity reflects a positive contribution from changes to labour composition, due to educational attainment and work experience.


MARKET SECTOR PRODUCTIVITY, Hours worked basis

Graph shows MARKET SECTOR PRODUCTIVITY, Hours worked basis, percentage change


KEY FIGURES, 2014-15
Hours Worked Basis
% Change
Quality Adjusted
Hours Worked Basis
% Change

Multifactor Productivity
0.3
-0.1
Gross Value Added
2.2
2.1
Labour Input
0.8
1.4
Capital Input
3.3
3.3
Labour Productivity
1.3
0.7



INDUSTRIES

In 2014-15, nine of the 16 market sector industries recorded positive MFP growth, on an hours worked basis. Mining (+5.5%) had the most significant MFP growth, followed by Information, media and telecommunications (+4.5%) and Financial and insurance services (+4.0%).

Mining recorded the strongest decrease in labour input (-12.0%), together with a significant rise in gross value added growth (+7.6%), contributing to the largest increase in MFP growth by industry. This is the largest growth for Mining MFP since 2000-01 and the first positive MFP growth since 2006-07.

MINING MFP, Hours worked basis
Graph shows MINING MFP, Hours worked basis, percentage change

Information, media and telecommunications recorded an increase in MFP growth of 4.5%, driven by the strongest gross value added growth by industry (+9.4%), partially offset by the growth of labour inputs (+7.7). Other industries with significant MFP growth included Other services (+3.2%), Electricity, gas, water and waste services (+2.5%) and Accommodation and food services (+2.0%).

The largest decreases in MFP growth were for Professional, scientific and technical services (-4.3%) and Arts and recreation services (-4.3%). This was the largest fall for Professional, scientific and technical services since 1995-96, attributable to strong negative growth in gross value added (-4.0%).

PROFESSIONAL, SCIENTIFIC AND TECHNICAL SERVICES MFP, Hours worked basis

Graph shows PROFESSIONAL, SCIENTIFIC AND TECHNICAL SERVICES MFP, Hours worked basis, percentage change

In 2014-15, on an hours worked basis, labour productivity growth was particularly strong for Mining (+22.4%), Electricity, gas, water and waste services (+7.8%) and Financial and insurance services (+6.1%). For Electricity, gas, water and waste services, this was primarily driven by a strong decline labour input (-5.9%). For Financial and insurance services, labour productivity growth was more influenced by growth in gross value added (+4.6%).


PRODUCTIVITY GROWTH, By Market Sector Industries, hours worked basis

Graph shows PRODUCTIVITY GROWTH, By Market Sector Industries, hours worked basis, percentage change

KEY FIGURES, By Market Sector Industries, hours worked basis, annual percentage change

MFP
Gross Value
Added
Labour Input
Capital
Input
Labour
Productivity

Agriculture, forestry and fishing
1.2
1.5
-1.1
1.0
2.6
Mining
5.5
7.6
-12.0
7.4
22.4
Manufacturing
-0.5
-1.2
-0.2
-1.5
-1.0
Electricity, gas, water and waste services
2.5
1.4
-5.9
1.6
7.8
Construction
-2.3
-0.7
0.1
5.6
-0.8
Wholesale trade
0.9
2.5
1.0
2.6
1.5
Retail trade
-0.6
2.6
2.5
5.1
0.1
Accommodation and food services
2.0
7.0
6.0
1.1
0.9
Transport, postal and warehousing
-3.9
-0.9
3.8
2.3
-4.5
Information, media and telecommunications
4.5
9.4
7.7
2.8
1.5
Financial and insurance services
4.0
4.6
-1.4
1.8
6.1
Rental, hiring and real estate services
0.0
4.4
4.6
4.2
-0.2
Professional, scientific and technical services
-4.3
-4.0
-0.5
3.5
-3.5
Administrative and support services
-2.6
-0.1
2.6
1.7
-2.7
Arts and recreation services
-4.3
3.0
9.9
3.1
-6.3
Other services
3.2
2.9
-1.0
5.7
3.9
Market sector (16)
0.3
2.2
0.8
3.3
1.3



PRODUCTIVITY GROWTH CYCLES

A common method of examining changes in productivity over an extended period involves identifying and dividing the data into productivity 'growth cycles'. By analysing averages of productivity statistics between growth cycle peaks, the effects of some of these temporary influences can be minimised, allowing better analysis of the drivers of productivity growth in different periods.

Over the current incomplete growth cycle, MFP in the market sector on a hours worked basis, grew 0.1% per year on average. Gross value added grew a moderate 2.5% per year over the same period, while labour input grew 0.4% per year and capital input grew 4.9% per year. On a quality adjusted hours worked basis, market sector MFP declined 0.2% per year.

Labour productivity grew 2.1% per year on average over the current incomplete growth cycle. On a quality adjusted hours worked basis, labour productivity grew 1.5% per year on average. The weaker growth in quality adjusted labour productivity reflects a positive contribution from changes to labour composition, due to educational attainment and work experience.

KEY FIGURES, by growth cycle, average percentage change
Growth Cycles

Current incomplete growth cycle

1998-99 to 2003-04
2003-04 to 2007-08
2007-08 to 2014-15

Multifactor Productivity – Hours worked basis
1.0
-0.5
0.1
Gross Value Added
3.5
3.6
2.5
Labour Input
1.3
2.5
0.4
Capital Input
4.5
6.4
4.9
Labour Productivity
2.3
1.2
2.1
Multifactor Productivity – Quality adjusted hours worked basis
0.7
-0.7
-0.2
Gross Value Added
3.5
3.6
2.5
Labour Input
1.7
2.9
1.0
Capital Input
4.5
6.4
4.9
Labour Productivity
1.8
0.7
1.5



Note: The reported percentage changes are based on natural log growth x 100.