Productivity is a measure of how efficiently capital and labour are used within the economy to produce outputs of goods and services. A higher productivity rate means a nation can either produce a higher level of goods and services with the same level of inputs or produce the same level of goods and services with a lower level of inputs. Labour productivity primarily takes the hours people work into account, whereas capital productivity only takes capital inputs, such as land, machinery, and equipment, into account.
Key facts
For the measured sector, in the year ended March 2025:
- labour productivity rose 0.8 percent
- multifactor productivity fell 0.9 percent
- capital productivity fell 3.0 percent.
Key aggregates for the measured sector
The measured sector represents the industries where we can measure output independently from input, allowing us to measure productivity. It includes most of the economy but excludes some industries, mainly non-market industries such as public administration and safety; education and training; and health care and social assistance.
Labour productivity rose 0.8 percent over the year ended March 2025. Labour productivity captures how output relates to changes in labour inputs. The rise in labour productivity reflects a smaller decline in output, down 1.5 percent compared with the decline in labour inputs, down 2.3 percent.
Multifactor productivity fell 0.9 percent over the year ended March 2025. This measure takes both labour and capital inputs into consideration. This can be seen as productivity from a business point of view, as businesses combine both labour and capital inputs to produce outputs. The effects of unobserved inputs such as technological advances, efficiency gains, and economies of scale are captured by multifactor productivity. The fall in multifactor productivity reflects a stronger decline in output, down 1.5 percent compared with the decrease in total inputs, down 0.7 percent.
Capital productivity fell 3.0 percent over the year ended March 2025. Capital productivity captures how output growth relates to capital input growth. Capital inputs include land, machinery, and equipment. The fall in capital productivity reflects that capital inputs increased 1.5 percent, while output declined 1.5 percent.
Productivity growth cycles
Productivity is best analysed across growth cycles, as annual movements can be volatile and do not always represent true changes to the underlying production function. A growth cycle is the span of years between adjacent peaks in economic growth, as determined by statistical techniques. The benefit of showing productivity data in cycles is to account for factors that can vary within a cycle, but which lack explicit measures, such as capacity utilisation.
Capacity utilisation is the difference between the potential and actual use of an input and is high during times of strong economic growth. In times of economic decline, or due to economic shocks, resources may become underutilised.
This approach also limits the impact of annual volatility by calculating average annual movements over a longer period, rather than for single years in isolation.
New Zealand's most recent productivity growth cycle began in 2024. Take care when comparing the current cycle to previous finished cycles - the current cycle is incomplete and includes only one year of productivity measurement. Average annual labour productivity growth of 0.8 percent in the current cycle (2024 to 2025) is higher than growth in the previous cycle (0.1 percent from 2020 to 2024). The current cycle is unfinished, and its average productivity growth will likely change as additional years of productivity measurement are included.
The table below shows average annual growth rates across different growth cycles and the latest financial year.
Variable |
Growth cycle |
Latest |
Full measured |
|||
Time period |
1997- |
2000- |
2008 |
2020 |
2025(4) |
1996-2025(2) |
Percent |
||||||
Output |
||||||
Value added |
2.9 |
3.5 |
2.1 |
2.0 |
-1.5 |
2.5 |
Labour |
||||||
Labour input |
0.1 |
2.1 |
1.2 |
1.8 |
-2.3 |
1.3 |
Labour productivity |
2.8 |
1.3 |
0.9 |
0.1 |
0.8 |
1.1 |
Capital |
||||||
Capital input |
2.4 |
3.9 |
2.3 |
3.4 |
1.5 |
2.9 |
Capital productivity |
0.4 |
-0.4 |
-0.2 |
-1.4 |
-3.0 |
-0.4 |
Multifactor |
||||||
Total inputs |
1.1 |
2.9 |
1.7 |
2.5 |
-0.7 |
2.0 |
Multifactor productivity |
1.8 |
0.6 |
0.4 |
-0.5 |
-0.9 |
0.5 |
1. The measured sector series begins in 1996. 2. Average annual growth rates, year ended March. 3. Includes COVID-19-affected period. 4. Annual growth rate, year ended March. Source: Stats NZ |
||||||
Size of the measured sector
In theory, productivity measures should cover all industries in the economy. The industry coverage of these statistics includes only the 'measured sector' - mainly market industries rather than non-market industries like public administration, education, and healthcare. The measured sector covers over 80 percent of the total industry contribution to New Zealand's gross domestic product (GDP).
- Primary industries accounted for 10.1 percent of measured sector output and 8.2 percent of total industry contribution to GDP in 2025.
- Goods-producing industries made up 31.8 percent of measured sector output and 25.9 percent of industry contribution to GDP in 2025.
- Measured-sector service industries comprised 58.1 percent of measured sector output and 47.4 percent of industry contribution to GDP in 2025.
Labour productivity by industry
Over the full time series that is available for the measured sector, from 1996 through to the year ended March 2025, the productivity of New Zealand workers in the measured sector increased 39.1 percent.
In 2025, compared with 1996:
- primary industries workers produced 72.0 percent more goods and services per hour
- goods-producing industry workers produced 16.6 percent more goods and services per hour
- measured-sector service industries workers produced 47.7 percent more goods and services per hour.
| Year | Measured sector | Primary industries | Goods-producing industries | Service industries |
| 1996 | 1000 | 1000 | 1000 | 1000 |
| 1997 | 1018 | 1151 | 1015 | 998 |
| 1998 | 1040 | 1198 | 1060 | 1005 |
| 1999 | 1054 | 1161 | 1069 | 1029 |
| 2000 | 1108 | 1135 | 1115 | 1098 |
| 2001 | 1123 | 1128 | 1117 | 1124 |
| 2002 | 1137 | 1095 | 1110 | 1161 |
| 2003 | 1155 | 1116 | 1153 | 1169 |
| 2004 | 1172 | 1222 | 1160 | 1178 |
| 2005 | 1190 | 1239 | 1161 | 1208 |
| 2006 | 1209 | 1337 | 1157 | 1229 |
| 2007 | 1216 | 1310 | 1160 | 1243 |
| 2008 | 1230 | 1357 | 1170 | 1256 |
| 2009 | 1217 | 1455 | 1133 | 1234 |
| 2010 | 1263 | 1516 | 1205 | 1264 |
| 2011 | 1267 | 1385 | 1222 | 1282 |
| 2012 | 1287 | 1495 | 1215 | 1300 |
| 2013 | 1300 | 1535 | 1229 | 1310 |
| 2014 | 1306 | 1492 | 1208 | 1335 |
| 2015 | 1323 | 1565 | 1211 | 1353 |
| 2016 | 1342 | 1614 | 1233 | 1369 |
| 2017 | 1349 | 1623 | 1238 | 1377 |
| 2018 | 1358 | 1566 | 1247 | 1396 |
| 2019 | 1359 | 1614 | 1235 | 1399 |
| 2020 | 1374 | 1585 | 1242 | 1424 |
| 2021 | 1374 | 1586 | 1245 | 1421 |
| 2022 | 1384 | 1496 | 1200 | 1472 |
| 2023 | 1381 | 1556 | 1167 | 1480 |
| 2024 | 1380 | 1655 | 1179 | 1463 |
| 2025 | 1391 | 1722 | 1168 | 1479 |
Over the year ended March 2025, labour productivity in both measured-sector service and primary industries rose, up 1.1 percent and 4.0 percent respectively. Labour productivity in goods-producing industries fell 0.9 percent over the same period.
The graph below shows the changes in labour productivity and multifactor productivity growth rates across the different measured-sector industries.
| Industry | Labour productivity (%) | Multifactor productivity (%) |
| "Agriculture | 7.3 | 5.7 |
| forestry | -16.3 | -11.6 |
| and fishing" | 1.1 | -0.3 |
| Mining | -3.1 | -5.7 |
| Manufacturing | -3.4 | -5.3 |
| "Electricity | -0.4 | -1.2 |
| gas | 0.3 | -0.1 |
| water | -3.5 | -3.3 |
| and waste services" | 0.9 | -0.7 |
| Construction | 7.3 | 1.7 |
| Wholesale trade | -2.2 | -3.4 |
| Retail trade | 8.8 | 5.6 |
| Accommodation and food services | -0.6 | -1.7 |
| "Transport | 5.7 | 4.3 |
| postal | -3.9 | -4.5 |
| and warehousing" | -3 | -3.3 |
| "Information | 0.8 | -0.9 |
| 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 | ||
| Measured sector |
Labour productivity industry summaries for the year ended March 2025
The following section shows key labour productivity aggregates for selected industries that made the largest upwards and downwards contributions to the measured sector labour productivity growth. This is different to the industries with the largest and smallest labour productivity growth, as the size of the industry also influences how much it contributes to the measured sector total.
Upward drivers for labour productivity
For rental, hiring, and real estate services:
- output rose 4.4 percent
- labour inputs fell 4.0 percent
- labour productivity rose 8.8 percent.
The rise in labour productivity was driven by both growth in output and a decline in labour inputs.
| Year | Value added (output) (%) | Labour input (%) |
| 1997 | 4.1 | 9.8 |
| 1998 | 0.7 | 4.3 |
| 1999 | 2.5 | -0.5 |
| 2000 | 6.3 | 5.2 |
| 2001 | 5.6 | 1.6 |
| 2002 | 7.7 | -0.2 |
| 2003 | 8.3 | -0.4 |
| 2004 | 5.1 | 3.7 |
| 2005 | 3.4 | 0.6 |
| 2006 | 5.2 | 1.2 |
| 2007 | 4.5 | -0.5 |
| 2008 | -2.9 | 0.8 |
| 2009 | -1.7 | -3.4 |
| 2010 | 2.6 | -3.3 |
| 2011 | 0.3 | 1 |
| 2012 | 5.6 | 0.3 |
| 2013 | 2 | -1.5 |
| 2014 | 2 | 6.4 |
| 2015 | -0.6 | -0.2 |
| 2016 | 6.3 | 9.8 |
| 2017 | 4.5 | 0.3 |
| 2018 | 0.1 | 0.5 |
| 2019 | 0.1 | 1.9 |
| 2020 | 0.8 | 2.7 |
| 2021 | -0.3 | 0.9 |
| 2022 | 4.3 | 6.1 |
| 2023 | -1.5 | -1.7 |
| 2024 | 5.5 | 4.2 |
| 2025 | 4.4 | -4 |
| Year | Labour productivity (%) |
| 1997 | -5.2 |
| 1998 | -3.4 |
| 1999 | 3 |
| 2000 | 1.1 |
| 2001 | 4 |
| 2002 | 7.9 |
| 2003 | 8.8 |
| 2004 | 1.4 |
| 2005 | 2.8 |
| 2006 | 3.9 |
| 2007 | 5 |
| 2008 | -3.6 |
| 2009 | 1.8 |
| 2010 | 6.2 |
| 2011 | -0.7 |
| 2012 | 5.4 |
| 2013 | 3.6 |
| 2014 | -4.1 |
| 2015 | -0.4 |
| 2016 | -3.2 |
| 2017 | 4.2 |
| 2018 | -0.4 |
| 2019 | -1.7 |
| 2020 | -1.8 |
| 2021 | -1.2 |
| 2022 | -1.7 |
| 2023 | 0.2 |
| 2024 | 1.2 |
| 2025 | 8.8 |
For agriculture, forestry, and fishing:
- output rose 4.7 percent
- labour inputs fell 2.4 percent
- labour productivity rose 7.3 percent.
The rise in labour productivity was driven by both growth in output and a decline in labour inputs.
| Year | Value added (output) (%) | Labour input (%) |
| 1997 | 8.8 | -2.9 |
| 1998 | 0.4 | -3.6 |
| 1999 | -4.4 | -0.8 |
| 2000 | 4.8 | 6.6 |
| 2001 | 3.6 | 4.1 |
| 2002 | -1.8 | 0.6 |
| 2003 | -0.6 | -2.6 |
| 2004 | 11.2 | -2.1 |
| 2005 | -3.1 | -5.3 |
| 2006 | 5.2 | -3.9 |
| 2007 | 0.5 | 0.9 |
| 2008 | -14.7 | -2.1 |
| 2009 | 9.1 | -0.8 |
| 2010 | 2.1 | -1.1 |
| 2011 | -7.9 | -0.3 |
| 2012 | 12.8 | -1.8 |
| 2013 | 4.7 | -1 |
| 2014 | -1.4 | 2.7 |
| 2015 | 5 | 1.1 |
| 2016 | 2.7 | -1.8 |
| 2017 | 0.6 | -1.2 |
| 2018 | -3.9 | -0.3 |
| 2019 | 5.8 | 1.3 |
| 2020 | -2.7 | -0.4 |
| 2021 | 4.4 | 2.8 |
| 2022 | -1.7 | 4 |
| 2023 | 1 | -4.1 |
| 2024 | 3.2 | -2.2 |
| 2025 | 4.7 | -2.4 |
| Year | Labour productivity (%) |
| 1997 | 12.1 |
| 1998 | 4.1 |
| 1999 | -3.6 |
| 2000 | -1.7 |
| 2001 | -0.4 |
| 2002 | -2.4 |
| 2003 | 2.1 |
| 2004 | 13.6 |
| 2005 | 2.4 |
| 2006 | 9.4 |
| 2007 | -0.5 |
| 2008 | -12.9 |
| 2009 | 10 |
| 2010 | 3.3 |
| 2011 | -7.7 |
| 2012 | 14.9 |
| 2013 | 5.7 |
| 2014 | -4 |
| 2015 | 3.9 |
| 2016 | 4.5 |
| 2017 | 1.8 |
| 2018 | -3.6 |
| 2019 | 4.4 |
| 2020 | -2.3 |
| 2021 | 1.5 |
| 2022 | -5.5 |
| 2023 | 5.4 |
| 2024 | 5.5 |
| 2025 | 7.3 |
| Year | Value added (output) (%) | Labour input (%) |
| 1997 | 7.2 | 6 |
| 1998 | 6.4 | -4 |
| 1999 | 5.7 | -0.1 |
| 2000 | 14.5 | -0.9 |
| 2001 | 11.1 | 1.7 |
| 2002 | 6.7 | 3.6 |
| 2003 | 5.5 | -1.5 |
| 2004 | 4.5 | 1.3 |
| 2005 | 3.3 | 3.2 |
| 2006 | 1.9 | 2.3 |
| 2007 | 5.3 | 2 |
| 2008 | 7 | 0.4 |
| 2009 | 1.9 | -0.9 |
| 2010 | 1.2 | -8.8 |
| 2011 | 5.3 | -0.9 |
| 2012 | 3.9 | 5.4 |
| 2013 | 5.1 | -2.2 |
| 2014 | 9.2 | 0.4 |
| 2015 | 7.9 | -1.8 |
| 2016 | 8.4 | 1.6 |
| 2017 | -3.7 | 1.8 |
| 2018 | 1.4 | 0.4 |
| 2019 | 7.7 | -6.2 |
| 2020 | 2.5 | -3.4 |
| 2021 | 9.7 | -4.9 |
| 2022 | 10.7 | 6.4 |
| 2023 | -3.5 | 5.9 |
| 2024 | 6.3 | -4.2 |
| 2025 | -0.8 | -7.5 |
| Year | Labour productivity (%) |
| 1997 | 1.2 |
| 1998 | 10.8 |
| 1999 | 5.8 |
| 2000 | 15.5 |
| 2001 | 9.2 |
| 2002 | 3 |
| 2003 | 7.2 |
| 2004 | 3.2 |
| 2005 | 0.1 |
| 2006 | -0.4 |
| 2007 | 3.2 |
| 2008 | 6.6 |
| 2009 | 2.8 |
| 2010 | 11 |
| 2011 | 6.2 |
| 2012 | -1.4 |
| 2013 | 7.5 |
| 2014 | 8.8 |
| 2015 | 9.8 |
| 2016 | 6.7 |
| 2017 | -5.5 |
| 2018 | 1 |
| 2019 | 14.9 |
| 2020 | 6.2 |
| 2021 | 15.4 |
| 2022 | 4 |
| 2023 | -8.9 |
| 2024 | 10.9 |
| 2025 | 7.3 |
Downward drivers for labour productivity
For construction:
- output fell 8.5 percent
- labour inputs fell 5.3 percent
- labour productivity fell 3.4 percent.
The fall in labour productivity was driven by a larger fall in output than the decline in labour inputs.
| Year | Value added (output) (%) | Labour input (%) |
| 1997 | 8.8 | 1.7 |
| 1998 | 4.6 | 1.7 |
| 1999 | -3.6 | 3.5 |
| 2000 | 14.1 | 5.8 |
| 2001 | -3.5 | -0.5 |
| 2002 | 3.9 | 2.6 |
| 2003 | 7.9 | 5.8 |
| 2004 | 8.6 | 8.7 |
| 2005 | 10.3 | 9.6 |
| 2006 | 3.1 | 7.4 |
| 2007 | 4.8 | 1.9 |
| 2008 | 6.1 | 3.7 |
| 2009 | -3.1 | -1.8 |
| 2010 | -0.1 | -8.7 |
| 2011 | -0.4 | -0.4 |
| 2012 | -2.6 | 0.6 |
| 2013 | 6.7 | 3.9 |
| 2014 | 2.4 | 5.5 |
| 2015 | 9.4 | 5.8 |
| 2016 | 6.9 | 4 |
| 2017 | 8.1 | 5.9 |
| 2018 | 8.8 | 5.3 |
| 2019 | 3 | 6.3 |
| 2020 | 7.1 | 3.2 |
| 2021 | 3.5 | 2 |
| 2022 | -7 | 6.7 |
| 2023 | 9.5 | 3.8 |
| 2024 | 6.9 | 2 |
| 2025 | -8.5 | -5.3 |
| Year | Labour productivity (%) |
| 1997 | 6.9 |
| 1998 | 2.9 |
| 1999 | -6.9 |
| 2000 | 7.8 |
| 2001 | -3 |
| 2002 | 1.3 |
| 2003 | 1.9 |
| 2004 | -0.1 |
| 2005 | 0.7 |
| 2006 | -4 |
| 2007 | 2.9 |
| 2008 | 2.4 |
| 2009 | -1.4 |
| 2010 | 9.4 |
| 2011 | 0 |
| 2012 | -3.3 |
| 2013 | 2.7 |
| 2014 | -3 |
| 2015 | 3.3 |
| 2016 | 2.8 |
| 2017 | 2 |
| 2018 | 3.4 |
| 2019 | -3.1 |
| 2020 | 3.7 |
| 2021 | 1.5 |
| 2022 | -12.9 |
| 2023 | 5.5 |
| 2024 | 4.8 |
| 2025 | -3.4 |
For financial and insurance services:
- output rose 0.6 percent
- labour inputs rose 2.9 percent
- labour productivity fell 2.2 percent.
The fall in labour productivity was driven by a larger rise in labour inputs than the increase in output.
| Year | Value added (output) (%) | Labour input (%) |
| 1997 | 2.2 | 2.3 |
| 1998 | 3 | -6.9 |
| 1999 | 3.1 | -0.4 |
| 2000 | 5.2 | -2.7 |
| 2001 | 4 | -1.1 |
| 2002 | 0.7 | -0.6 |
| 2003 | 3.8 | 1.6 |
| 2004 | 8.5 | 3 |
| 2005 | 8.2 | 2.9 |
| 2006 | 5 | 3 |
| 2007 | 5.4 | 5.4 |
| 2008 | 2.5 | 2.5 |
| 2009 | 1.4 | -2.8 |
| 2010 | 3.3 | -3.1 |
| 2011 | 0.7 | 3.9 |
| 2012 | 2.8 | 4.3 |
| 2013 | 2.4 | 2.5 |
| 2014 | 3.5 | -0.5 |
| 2015 | 2.2 | 2 |
| 2016 | 2.1 | 2.1 |
| 2017 | 3 | 2.6 |
| 2018 | 5.7 | 0.5 |
| 2019 | 3.6 | 0.9 |
| 2020 | 1.4 | 0.6 |
| 2021 | 2.8 | 9.4 |
| 2022 | -0.1 | 2.4 |
| 2023 | 4.5 | 1 |
| 2024 | 1.4 | 3.1 |
| 2025 | 0.6 | 2.9 |
| Year | Labour productivity (%) |
| 1997 | -0.1 |
| 1998 | 10.6 |
| 1999 | 3.5 |
| 2000 | 8.1 |
| 2001 | 5.2 |
| 2002 | 1.4 |
| 2003 | 2.1 |
| 2004 | 5.3 |
| 2005 | 5.1 |
| 2006 | 2 |
| 2007 | 0 |
| 2008 | 0 |
| 2009 | 4.4 |
| 2010 | 6.7 |
| 2011 | -3 |
| 2012 | -1.5 |
| 2013 | -0.1 |
| 2014 | 4 |
| 2015 | 0.2 |
| 2016 | 0.1 |
| 2017 | 0.4 |
| 2018 | 5.1 |
| 2019 | 2.6 |
| 2020 | 0.7 |
| 2021 | -6 |
| 2022 | -2.5 |
| 2023 | 3.4 |
| 2024 | -1.6 |
| 2025 | -2.2 |
2025 results are provisional
The provisional results for the year ended March 2025 are available for the first time in this release, and are subject to revision as updated data sources are incorporated.
More data
Use Infoshare to access annual productivity data:
Subject category: Economic indicators
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Definitions and metadata
Productivity measures statistics - DataInfo+ provides general methodology used to produce these statistics.
Productivity measures statistics - concepts - DataInfo+ provides the definitions of terms used in this release.
Productivity measures statistics 1978-2025 - DataInfo+ provides full details of our updates and revisions.
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Next release
Productivity statistics: 1978-2026 will be released in April 2027.
