Labour productivity fell 0.9 percent in the year ended March 2023, according to figures released by Stats NZ today.
The 0.9 percent fall in labour productivity was the largest fall since 2009. It follows a rise of 1.0 percent in the year ended March 2022.
Labour productivity measures the quantity of goods and services (output) produced per hour of labour.
"A fall in labour productivity means that we are producing less output per hour of labour," national accounts industry and production senior manager Ruvani Ratnayake said.
A fall was also seen in multifactor productivity, down 2.2 percent. Multifactor productivity captures the effects of unobserved inputs such as technological progress, efficiency gains, and economies of scale.
Notable events affecting the economy in the year ended March 2023 included the closure of the Marsden point refinery, the removal of COVID-19 restrictions including border closures, and extreme weather events in the North Island.
These statistics cover the measured sector, which is mainly market-sector industries, and covers approximately three-quarters of New Zealand's economy.
Predominantly non-market service industries like education and healthcare are not included within the measured sector.
Data for the year ended March 2023 is provisional and subject to future updates.
Productivity is best analysed over business growth cycles, as annual movements can be volatile.
