Estimates of Industry Multifactor Productivity

Latest release

Updates estimates of industry multifactor productivity (MFP) for industries and market sector aggregates

Reference period

2023-24 financial year

Released

22/01/2025

Next release 6/02/2026

Release date and time

22/01/2025 11:30am AEDT

Key statistics

In 2023-24, on an hour worked basis:

The market sector MFP rose 0.1%
Market sector labour productivity increased 1.1%, following a record fall of 3.5% in 2022-23
MFP in ten of sixteen market sector industries rose
Largest MFP rise was in Agriculture, forestry and fishing, largest fall was in Arts and recreation services

Market sector productivity

On an hour worked basis, market sector MFP rose 0.1% in 2023-24 following a 0.9% decline in 2022-23.

Market sector gross value added (GVA) rose 1.0%, the second slowest growth recorded since the time series commenced in 1994-95. By comparison, combined labour and capital inputs grew 0.9%, reflecting capital services growth of 2.2% and a 0.1% fall in hours worked.

Market sector labour productivity rose 1.1%, the result of moderate growth in GVA combined with flat hours worked in 2023-24 after the unprecedented growth in hours worked of 7.6% in 2022-23.

On a quality adjusted labour input (QALI) basis, labour productivity grew 0.6% while MFP fell 0.2%. The weaker growth of labour productivity and MFP on a QALI basis reflected a positive contribution from changes to the composition of labour due to educational attainment and work experience. Details of the QALI measure are available in Understanding labour quality and its contribution to productivity measurement.

Market sector, productivity growth - hours worked basis
	Multifactor productivity (%)	Labour productivity (%)
1995-96	1.4	2.0
1996-97	2.4	4.4
1997-98	2.7	4.5
1998-99	2.5	3.7
1999-00	0.2	0.5
2000-01	0.1	1.4
2001-02	3.2	4.8
2002-03	0.0	0.8
2003-04	1.7	3.3
2004-05	-0.9	0.2
2005-06	-0.4	1.4
2006-07	0.0	0.9
2007-08	-0.6	0.6
2008-09	-0.5	1.6
2009-10	1.0	3.1
2010-11	-0.7	0.0
2011-12	1.4	3.6
2012-13	0.4	2.5
2013-14	1.1	2.7
2014-15	1.0	2.1
2015-16	0.8	1.0
2016-17	0.7	1.3
2017-18	0.7	0.5
2018-19	0.1	0.2
2019-20	-0.1	1.6
2020-21	0.8	1.8
2021-22	2.4	2.4
2022-23	-0.9	-3.5
2023-24	0.1	1.1

Market sector, productivity growth - hours worked basis

["","Multifactor productivity","Labour productivity"]

[["1995-96","1996-97","1997-98","1998-99","1999-00","2000-01","2001-02","2002-03","2003-04","2004-05","2005-06","2006-07","2007-08","2008-09","2009-10","2010-11","2011-12","2012-13","2013-14","2014-15","2015-16","2016-17","2017-18","2018-19","2019-20","2020-21","2021-22","2022-23","2023-24"],[[1.360627605],[2.43076551],[2.66824085],[2.506899724],[0.168274624],[0.089595699],[3.211368468],[0.043365134],[1.668833984],[-0.863355361],[-0.40855822],[0],[-0.604555759],[-0.477897252],[1.036778348],[-0.734499892],[1.414581066],[0.418454936],[1.132599637],[1.014263074],[0.753059303],[0.737049725],[0.72135202],[0.07161858],[-0.092015131],[0.849365534],[2.415017757],[-0.921430695],[0.07]],[[1.97891322],[4.358199459],[4.450541076],[3.662629505],[0.520833333],[1.414367736],[4.791494062],[0.790618],[3.281474703],[0.17721519],[1.389941875],[0.947158524],[0.641975309],[1.6437684],[3.077480087],[0.011708231],[3.570592367],[2.475415395],[2.66931392],[2.11645896],[1.020515518],[1.260154135],[0.493674792],[0.173984239],[1.604004904],[1.779788839],[2.35131397],[-3.474903475],[1.13]]]

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Growth for market sector (%), 2023-24
	Hours worked basis	Quality adjusted hours worked basis
Multifactor Productivity	0.1	-0.2
Gross Value Added	1.0	1.0
Labour Input	-0.1	0.4
Capital Input	2.2	2.2
Labour Productivity	1.1	0.6

Estimates of industry productivity, 2023-24

In 2023-24, MFP in ten market sector industries rose. Agriculture, forestry, and fishing saw the strongest rise in MFP (7.3%) driven by continued strength in GVA (7.0%), combined with flat inputs, reflecting strong livestock supply to meet rising international demand and improved abattoir capacity. The largest MFP fall was in Arts and recreation services (8.6%), driven by the strength in hours worked (15.2%) amid the hosting of high-profile international events. In addition, Transport, postal and warehousing saw a large rise (4.2%) in MFP whereas Professional, scientific and technical services saw a large fall (2.9%). In terms of labour productivity, a large increase was seen in Wholesale trade (5.9%) while a large fall was reported in Mining (6.7%).

MFP growth (a) in 2023-24, hours worked basis
	MFP growth (%)
Agriculture, forestry and fishing	7.3
Mining	-2.3
Manufacturing	0.1
Electricity, gas, water and waste services	-1.7
Construction	2
Wholesale trade	1.8
Retail trade	-1.4
Accommodation and food services	2.2
Transport, postal and warehousing	4.2
Information, media and telecommunications	0.7
Financial and insurance services	0.4
Rental, hiring and real estate services	2
Professional, scientific and technical services	-2.9
Administrative and support services	-0.9
Arts and recreation services	-8.6
Other services	2.5

MFP growth (a) in 2023-24, hours worked basis

["","MFP growth"]

[["Agriculture, forestry and fishing","Mining","Manufacturing","Electricity, gas, water and waste services","Construction","Wholesale trade","Retail trade","Accommodation and food services","Transport, postal and warehousing","Information, media and telecommunications","Financial and insurance services","Rental, hiring and real estate services","Professional, scientific and technical services","Administrative and support services","Arts and recreation services","Other services"],[[7.3],[-2.3],[0.1],[-1.7],[2],[1.8],[-1.4],[2.2],[4.2],[0.7],[0.4],[2],[-2.9],[-0.9],[-8.6],[2.5]]]

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Natural log growth * 100

Mining recorded the fourth consecutive annual decline in MFP

MFP fell 2.3% in 2023-24, the fourth consecutive annual fall. The fall in MFP reflected:

GVA was flat (0.0%) driven by weaker iron ore and gas production due to weather disruptions and maintenance work, which was offset by increased coal production and growing demand for spodumene to support lithium production.
Capital services rose 1.6%, the highest growth since 2017-18, reflecting higher non-dwelling construction associated with continued work on key mining projects.
Hours worked grew 6.7%, reflecting additional labour requirements to restore operational capacity during weather disruptions and unplanned maintenance.

Contributions to GVA growth (a) – Mining
	GVA	MFP	Combined input
1995-96	8.5	1.6	7.0
1996-97	1.4	-2.7	4.2
1997-98	3.8	-1.3	5.1
1998-99	-0.2	-1.0	0.8
1999-00	5.1	6.4	-1.3
2000-01	7.7	7.2	0.5
2001-02	0.7	-1.9	2.5
2002-03	0.1	-3.3	3.4
2003-04	-3.0	-6.5	3.5
2004-05	5.7	1.7	4.0
2005-06	1.8	-8.1	10.0
2006-07	8.7	-0.3	9.0
2007-08	3.1	-6.1	9.2
2008-09	3.8	-7.1	10.9
2009-10	7.7	1.6	6.1
2010-11	1.2	-7.6	8.8
2011-12	6.9	-9.1	16.0
2012-13	9.0	-4.8	13.8
2013-14	10.0	1.8	8.2
2014-15	7.3	4.1	3.2
2015-16	6.1	4.9	1.2
2016-17	0.9	1.1	-0.2
2017-18	4.7	1.8	3.0
2018-19	4.5	3.6	1.0
2019-20	4.0	2.7	1.4
2020-21	-2.9	-4.0	1.1
2021-22	-2.6	-4.2	1.5
2022-23	0.3	-1.6	1.8
2023-24	0.0	-2.3	2.3

Contributions to GVA growth (a) – Mining

["","GVA","MFP","Combined input"]

[["1995-96","1996-97","1997-98","1998-99","1999-00","2000-01","2001-02","2002-03","2003-04","2004-05","2005-06","2006-07","2007-08","2008-09","2009-10","2010-11","2011-12","2012-13","2013-14","2014-15","2015-16","2016-17","2017-18","2018-19","2019-20","2020-21","2021-22","2022-23","2023-24"],[[8.53],[1.42],[3.81],[-0.2],[5.07],[7.68],[0.66],[0.11],[-2.97],[5.72],[1.81],[8.73],[3.06],[3.81],[7.67],[1.23],[6.9],[9],[10.01],[7.26],[6.14],[0.91],[4.74],[4.53],[4.04],[-2.88],[-2.62],[0.26],[0.01]],[[1.55],[-2.74],[-1.28],[-0.99],[6.35],[7.15],[-1.86],[-3.33],[-6.51],[1.74],[-8.14],[-0.3],[-6.11],[-7.13],[1.56],[-7.58],[-9.09],[-4.77],[1.84],[4.07],[4.92],[1.06],[1.78],[3.58],[2.67],[-3.95],[-4.15],[-1.58],[-2.3]],[[6.98],[4.16],[5.09],[0.78],[-1.29],[0.52],[2.52],[3.44],[3.54],[3.98],[9.96],[9.03],[9.18],[10.93],[6.11],[8.81],[15.99],[13.76],[8.17],[3.19],[1.22],[-0.15],[2.96],[0.95],[1.38],[1.07],[1.53],[1.84],[2.31]]]

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Natural log growth x 100

Wholesale trade saw a large rise in labour productivity driven by a fall in hours worked

MFP rose 1.8% and labour productivity rose 5.9% in 2023-24, driven by a large fall in hours worked. The rise in MFP reflected:

GVA fell 3.4%, on the back of a strong rise in the previous year, mainly driven by weakness in grain production in line with reduced export demand for Australian grain and reduced demand for machinery and equipment wholesaling coming off consecutive rises in the previous years.
Hours worked experienced the largest fall among market sector industries (9.3%), following a strong rise in 2022-23 due to recovering supply chains and fulfilment of backlogged orders.

Contributions to GVA growth (a) – Wholesale trade
	GVA	MFP	Combined input
1995-96	6.3	2.6	3.7
1996-97	5.2	4.4	0.8
1997-98	6.8	1.3	5.5
1998-99	3.5	-2.3	5.7
1999-00	5.4	1.1	4.2
2000-01	-0.1	3.1	-3.2
2001-02	2.9	3.2	-0.3
2002-03	4.6	4.1	0.5
2003-04	4.9	4.4	0.5
2004-05	3.4	0.0	3.3
2005-06	3.3	0.1	3.2
2006-07	2.2	-3.2	5.3
2007-08	3.2	-2.6	5.9
2008-09	1.1	1.1	0.0
2009-10	2.9	3.2	-0.4
2010-11	-0.4	-3.8	3.4
2011-12	5.8	4.0	1.8
2012-13	4.0	4.3	-0.3
2013-14	-1.5	-0.2	-1.3
2014-15	3.1	1.4	1.8
2015-16	3.5	5.7	-2.2
2016-17	5.3	1.9	3.4
2017-18	0.9	1.6	-0.7
2018-19	1.1	-0.9	2.0
2019-20	-0.7	0.1	-0.9
2020-21	4.6	2.1	2.6
2021-22	1.3	1.4	-0.1
2022-23	6.7	-1.5	8.2
2023-24	-3.4	1.8	-5.2

Contributions to GVA growth (a) – Wholesale trade

["","GVA","MFP","Combined input"]

[["1995-96","1996-97","1997-98","1998-99","1999-00","2000-01","2001-02","2002-03","2003-04","2004-05","2005-06","2006-07","2007-08","2008-09","2009-10","2010-11","2011-12","2012-13","2013-14","2014-15","2015-16","2016-17","2017-18","2018-19","2019-20","2020-21","2021-22","2022-23","2023-24"],[[6.26],[5.23],[6.78],[3.46],[5.37],[-0.06],[2.88],[4.58],[4.93],[3.35],[3.28],[2.16],[3.24],[1.11],[2.87],[-0.38],[5.75],[4.01],[-1.54],[3.1],[3.46],[5.28],[0.87],[1.07],[-0.74],[4.64],[1.32],[6.7],[-3.38]],[[2.58],[4.42],[1.31],[-2.26],[1.13],[3.12],[3.19],[4.13],[4.39],[0.02],[0.07],[-3.17],[-2.63],[1.1],[3.23],[-3.76],[3.95],[4.28],[-0.24],[1.35],[5.69],[1.9],[1.55],[-0.88],[0.14],[2.07],[1.39],[-1.51],[1.8]],[[3.69],[0.82],[5.46],[5.71],[4.24],[-3.18],[-0.32],[0.45],[0.54],[3.32],[3.21],[5.34],[5.87],[0],[-0.36],[3.38],[1.81],[-0.28],[-1.3],[1.75],[-2.23],[3.38],[-0.68],[1.95],[-0.88],[2.56],[-0.07],[8.21],[-5.17]]]

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Natural log growth x 100

Transport, postal and warehousing showed large rises in both labour productivity and MFP driven by the strength in GVA

MFP rose 4.2%, the second largest increase in MFP across all market sector industries in 2023-24. The rise was driven by:

Solid growth in GVA (4.7%), driven by strength across subdivisions such as Air and space transport, Rail, pipeline and other transport, Road transport in line with the increases in domestic and international travel.
Hours worked fell 1.6% but remained close to the peak level in 2022-23 after the initial post-pandemic surge in demand, coinciding with the greater uptake of automation within warehousing, logistics and transport.

Contributions to GVA growth (a) – Transport, postal and warehousing
	GVA	MFP	Combined input
1995-96	7.3	1.9	5.4
1996-97	4.2	10.4	-6.2
1997-98	2.4	3.9	-1.6
1998-99	2.8	1.6	1.2
1999-00	4.0	-0.9	4.9
2000-01	4.0	2.6	1.4
2001-02	3.5	4.7	-1.3
2002-03	5.7	3.4	2.3
2003-04	3.9	0.0	3.9
2004-05	5.8	-0.3	6.1
2005-06	3.0	-1.2	4.1
2006-07	5.5	3.3	2.2
2007-08	5.5	1.3	4.1
2008-09	-0.3	-1.3	1.0
2009-10	1.7	-1.4	3.1
2010-11	2.9	0.3	2.5
2011-12	4.1	2.8	1.3
2012-13	3.4	1.0	2.4
2013-14	-0.2	-2.7	2.5
2014-15	0.3	1.1	-0.8
2015-16	2.2	0.1	2.0
2016-17	2.9	0.6	2.4
2017-18	2.1	-2.6	4.7
2018-19	1.3	-0.6	1.8
2019-20	-6.1	-5.8	-0.4
2020-21	-9.3	-6.5	-2.9
2021-22	9.9	7.1	2.8
2022-23	10.0	1.8	8.2
2023-24	4.7	4.2	0.5

Contributions to GVA growth (a) – Transport, postal and warehousing

["","GVA","MFP","Combined input"]

[["1995-96","1996-97","1997-98","1998-99","1999-00","2000-01","2001-02","2002-03","2003-04","2004-05","2005-06","2006-07","2007-08","2008-09","2009-10","2010-11","2011-12","2012-13","2013-14","2014-15","2015-16","2016-17","2017-18","2018-19","2019-20","2020-21","2021-22","2022-23","2023-24"],[[7.32],[4.18],[2.37],[2.78],[3.98],[4.04],[3.48],[5.67],[3.93],[5.84],[2.95],[5.5],[5.47],[-0.31],[1.67],[2.86],[4.1],[3.43],[-0.21],[0.32],[2.16],[2.9],[2.1],[1.27],[-6.13],[-9.31],[9.93],[9.97],[4.7]],[[1.9],[10.39],[3.91],[1.59],[-0.92],[2.64],[4.74],[3.41],[0.03],[-0.27],[-1.17],[3.28],[1.33],[-1.32],[-1.39],[0.33],[2.77],[1.01],[-2.73],[1.09],[0.12],[0.55],[-2.58],[-0.56],[-5.78],[-6.47],[7.13],[1.78],[4.18]],[[5.41],[-6.22],[-1.55],[1.19],[4.9],[1.4],[-1.26],[2.26],[3.89],[6.11],[4.12],[2.22],[4.14],[1.01],[3.06],[2.53],[1.33],[2.42],[2.52],[-0.77],[2.04],[2.35],[4.68],[1.84],[-0.35],[-2.85],[2.8],[8.19],[0.52]]]

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Natural log growth x 100

Professional, scientific and technical services recorded the second largest fall in MFP driven by growth in inputs.

MFP fell 2.9% in 2023-24, representing the second largest fall in MFP among market sector industries, as GVA did not keep pace with growth in labour and capital. The fall in MFP reflected:

A moderate increase in GVA (1.3%), the slowest growth over the past decade, as demand for business services softened amid a general economic slowdown.
Capital services grew 6.9%, driven by strength in computer software, research and development, with the growing trend of businesses adopting software as a service, utilising cloud computing for data storage and investing in artificial intelligence and predictive analytics.
Hours worked grew 3.7%, reflecting increased jobs in the Other professional services subdivision to accommodate for continued operational needs, partially offset by falls in Computer design system and other related services subdivision due to business restructuring.

Contributions to GVA growth (a) – Professional, scientific and technical services
	GVA	MFP	Combined input
1995-96	1.2	-5.8	7.0
1996-97	5.0	-2.8	7.8
1997-98	5.4	5.9	-0.5
1998-99	9.3	-0.7	10.1
1999-00	4.7	-2.9	7.6
2000-01	10.6	-0.1	10.6
2001-02	4.7	0.7	4.0
2002-03	1.7	-0.8	2.6
2003-04	4.9	0.3	4.6
2004-05	1.6	-2.9	4.6
2005-06	3.8	-0.7	4.5
2006-07	3.2	-0.8	4.0
2007-08	3.6	-1.9	5.5
2008-09	5.6	1.6	4.0
2009-10	6.3	7.2	-1.0
2010-11	7.6	5.8	1.8
2011-12	4.6	2.8	1.8
2012-13	4.3	-0.3	4.5
2013-14	0.1	0.0	0.1
2014-15	1.8	3.4	-1.7
2015-16	3.7	-3.1	6.8
2016-17	6.1	3.7	2.5
2017-18	5.1	0.2	4.9
2018-19	4.3	-1.9	6.2
2019-20	3.5	3.3	0.2
2020-21	3.3	1.4	1.9
2021-22	8.0	7.3	0.7
2022-23	5.9	0.3	5.6
2023-24	1.3	-2.9	4.2

Contributions to GVA growth (a) – Professional, scientific and technical services

["","GVA","MFP","Combined input"]

[["1995-96","1996-97","1997-98","1998-99","1999-00","2000-01","2001-02","2002-03","2003-04","2004-05","2005-06","2006-07","2007-08","2008-09","2009-10","2010-11","2011-12","2012-13","2013-14","2014-15","2015-16","2016-17","2017-18","2018-19","2019-20","2020-21","2021-22","2022-23","2023-24"],[[1.15],[5.04],[5.37],[9.33],[4.66],[10.56],[4.72],[1.74],[4.88],[1.64],[3.82],[3.24],[3.63],[5.63],[6.25],[7.59],[4.61],[4.26],[0.07],[1.78],[3.7],[6.13],[5.08],[4.34],[3.45],[3.3],[7.96],[5.9],[1.29]],[[-5.81],[-2.77],[5.85],[-0.72],[-2.9],[-0.06],[0.68],[-0.83],[0.34],[-2.93],[-0.71],[-0.79],[-1.85],[1.63],[7.2],[5.83],[2.8],[-0.28],[-0.03],[3.44],[-3.13],[3.66],[0.22],[-1.9],[3.25],[1.41],[7.31],[0.32],[-2.9]],[[6.97],[7.82],[-0.48],[10.05],[7.56],[10.62],[4.04],[2.58],[4.55],[4.58],[4.53],[4.04],[5.48],[4],[-0.95],[1.76],[1.81],[4.53],[0.1],[-1.66],[6.84],[2.46],[4.85],[6.24],[0.19],[1.89],[0.65],[5.57],[4.2]]]

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Natural log growth x 100

Productivity growth cycles

Growth cycle analysis can minimise the effects of some temporary influences (such as variations in capital utilisation) by averaging productivity measures over a cycle. For more information about the productivity growth cycle, please see the Feature Article: Experimental Estimates of Industry Value Added Growth Cycles in the 2015–16 issue of Estimates of Industry Multifactor Productivity.

2021-22 has been identified as the most recent productivity growth cycle peak for the market sector. In the latest growth cycle (2017-18 to 2021-22), market sector GVA growth was more subdued, averaging 1.6% per year. MFP contributed an average of 0.8 percentage points (ppts) to GVA growth per year.

This shows an increased MFP contribution from the previous growth cycles (2003-04 to 2009-10, and 2009-10 to 2017-18), in which MFP contributed 0.7 ppts and -0.2 ppts, respectively. Capital services contributed 0.7 ppts to GVA growth in the latest cycle, compared to 1.5 ppts in the previous cycle.

Contribution to output growth (hours worked basis), by growth cycle, average percentage points
	1998-99 to 2003-04	2003-04 to 2009-10	2009-10 to 2017-18	2017-18 to 2021-22
GVA growth (a)	3.6	3.0	2.8	1.6
Capital services	1.7	2.2	1.5	0.7
Hours worked	0.9	1.0	0.6	0.1
Multifactor productivity	1.0	-0.2	0.7	0.8

Natural log growth x 100

Direct Aggregation Across Industries (DAAI)

Experimental productivity measures (Tables 20-23) present the estimated industry contributions to market sector labour productivity growth under an alternative decomposition framework, the direct aggregation across industries (DAAI) approach (available at Experimental productivity growth accounts). This approach enables the separation of direct productivity and hour reallocation effects. In addition, it allows tracking industry origins of the market sector’s labour productivity growth.

Contribution to market sector labour productivity growth - by industry, 2023-24, percentage points (a) (b)
	Direct productivity	Hour reallocation
A Agriculture, forestry and fishing	0.2	0.0
B Mining	-1.2	1.1
C Manufacturing	0.1	0.0
D Electricity, gas, water and waste services	0.0	0.0
E Construction	0.4	0.1
F Wholesale trade	0.3	0.1
G Retail trade	0.0	0.0
H Accommodation and food services	0.1	0.2
I Transport, postal and warehousing	0.4	0.0
J Information, media and telecommunications	0.0	0.0
K Financial and insurance services	0.1	0.0
L Rental, hiring and real estate services	0.1	0.0
M Professional, scientific and technical services	-0.3	-0.1
N Administrative and support services	-0.1	0.0
R Arts and recreation services	-0.1	-0.1
S Other services	0.1	0.0
Total contribution	0.1	1.2

The estimates are from Table 22 of Data downloads
The difference between the headline market sector labour productivity growth and the total contribution from the underlying industries is attributable to aggregation methodology and rounding error

The direct effect is measured as the sum of direct labour productivity industry contributions. In 2023-24, the direct effect only contributed 0.1 ppts to the growth in market sector labour productivity. Within the direct effect, the rises in labour productivity in Transport, postal and warehousing, Construction, and Wholesale trade were the key contributors to aggregate labour productivity growth. In contrast, productivity decline in Mining was the largest detractor (-1.2 ppts) to market sector labour productivity growth.

The hour reallocation effect captures compositional changes to hours worked across industries. In 2023-24, the reallocation effect contributed 1.2 ppts to the growth in market sector labour productivity, being the main driver of the growth. Within the reallocation effect, reallocation of hours worked to Mining which has high labour productivity level contributed 1.1 ppts to market sector labour productivity growth.

Revisions in this issue

This publication incorporates revisions as follows:

Implementation of historical revisions in the national accounts: Impacts from the 2024 Annual National Accounts historical revisions
Revisions to Labour Account’s hours worked reflecting methodological refinements and updated source data: Labour Account Australia, September 2024

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Tables 1-19: Estimates of industry multifactor productivity
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Tables 20-26: Experimental estimates of industry multifactor productivity
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Tables 27-42: Experimental estimates of state productivity
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Methodology

Estimates of Industry Multifactor Productivity methodology, 2023-24 financial year

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