Labour productivity rose 0.6 percent in the year ended March 2020, Stats NZ said today.
"The latest figures showed that for every 100 goods and services a worker could produce per hour in 1996, they now produce 137," national accounts senior manager Paul Pascoe said.
"A rise in productivity means that we are producing more at the same cost and effort. This can, over time, lead to lower prices for consumers, higher profits for businesses, a lift in wages for workers, and overall a higher material standard of living".
While the response to slow the spread of the COVID-19 pandemic had a significant impact on the economy in calendar year 2020, most of that was seen after March 2020. As a result, the impact of COVID-19 will mostly be seen in next year's productivity statistics.
Labour productivity measures the quantity of goods and services (output) produced for each hour people work. Labour productivity is one of three major productivity measures produced - the other two are capital productivity and multifactor productivity.
Capital productivity fell 0.4 percent in the year ended March 2020. Capital productivity measures the amount of economic output generated per unit of capital investment in things like land, buildings, machinery, and equipment from cars to computers.
Multifactor productivity rose 0.1 percent in the year ended March 2020. Multifactor productivity is to businesses what labour productivity is to individuals, as it accounts for both labour and capital inputs used by businesses.
"Multifactor productivity is a measure of how efficient businesses are when they combine the workforce with their equipment or tools, and captures the effects of economies of scale, technological improvements, and efficiency gains," Mr Pascoe said.
Primary industries had the largest increase in labour productivity during the year, with a rise of 2.4 percent. By contrast, labour productivity in goods-producing industries fell 1.7 percent over the same period.
"Primary industries, including farming, have seen a long-term lift in productivity for decades, with greater improvements in efficiency compared to industries like manufacturing," Mr Pascoe said.
| Year ended March | Measured sector | Primary industries | Goods producing industries | Service industries |
| 1996 | 1000 | 1000 | 1000 | 1000 |
| 1997 | 1018 | 1153 | 1015 | 998 |
| 1998 | 1040 | 1201 | 1061 | 1005 |
| 1999 | 1054 | 1165 | 1070 | 1029 |
| 2000 | 1108 | 1138 | 1115 | 1099 |
| 2001 | 1123 | 1132 | 1117 | 1124 |
| 2002 | 1137 | 1098 | 1110 | 1161 |
| 2003 | 1156 | 1119 | 1153 | 1168 |
| 2004 | 1172 | 1225 | 1160 | 1177 |
| 2005 | 1191 | 1242 | 1161 | 1207 |
| 2006 | 1209 | 1340 | 1157 | 1228 |
| 2007 | 1216 | 1313 | 1159 | 1242 |
| 2008 | 1231 | 1359 | 1169 | 1255 |
| 2009 | 1213 | 1456 | 1119 | 1233 |
| 2010 | 1259 | 1518 | 1189 | 1263 |
| 2011 | 1263 | 1398 | 1204 | 1281 |
| 2012 | 1285 | 1502 | 1204 | 1298 |
| 2013 | 1298 | 1549 | 1215 | 1308 |
| 2014 | 1306 | 1505 | 1203 | 1333 |
| 2015 | 1322 | 1576 | 1203 | 1351 |
| 2016 | 1340 | 1621 | 1225 | 1366 |
| 2017 | 1345 | 1613 | 1228 | 1373 |
| 2018 | 1358 | 1572 | 1239 | 1397 |
| 2019 | 1363 | 1651 | 1231 | 1401 |
| 2020 | 1371 | 1690 | 1210 | 1422 |
In theory, productivity statistics should cover all industries in the economy. The coverage of these statistics only include the measured sector, which is mainly market-sector industries.
Predominantly non-market service industries like public education or healthcare are not included within the measured sector.
Across the measured sector, which includes about 80 percent of industry's contribution to New Zealand's gross domestic product, labour inputs rose 0.8 percent while their output rose 1.3 percent in the year ended March 2020.
Labour productivity in measured-sector service industries rose 1.5 percent.
Data for the year ended March 2020 is provisional and subject to revision.
