On an hours worked basis, market sector MFP fell 0.5% in 2024-25, following a 0.1% increase in 2023-24.
Market sector gross value added (GVA) increased by 0.9%, representing the second slowest growth since the time series commenced in 1994-95. By comparison, combined labour and capital inputs grew 1.4%, reflecting capital services growth of 1.8% and a 1.0% rise in hours worked.
Market sector labour productivity declined by 0.2%, driven by subdued growth in GVA alongside a moderate rise in hours worked in 2024-25.
On a quality adjusted labour input (QALI) basis, labour productivity fell 0.7% while MFP declined by 0.8%. The larger decline in labour productivity and MFP on a QALI basis reflected a positive contribution from the modelled composition of labour due to educational attainment and work experience. Further information on the QALI measure is available in Understanding labour quality and its contribution to productivity measurement.
- Natural log growth * 100
| Hours worked basis | Quality adjusted hours worked basis | |
|---|---|---|
| Multifactor Productivity | -0.5 | -0.8 |
| Gross Value Added | 0.9 | 0.9 |
| Labour Input | 1.0 | 1.6 |
| Capital Input | 1.8 | 1.8 |
| Labour Productivity | -0.2 | -0.7 |
- Natural log growth * 100