At 11:30 this morning, the ABS published the Australian national accounts for the March quarter of this year. Among other things, they show that the rate of productivity growth has surged – in the past year, labour productivity in the market sector grew at its fastest pace in over a decade. I’m sure this will be a major focus of the news coverage tomorrow, just as the disappointing productivity numbers were closely examined in early 2011. Just in case The Australian doesn’t choose to highlight the issue, here’s a handy chart for your reference:
Labour productivity in the market sector – year ended growth
Source: Calculations based on ABS 5206, table 1.
While it’s true that you should be careful about drawing too many conclusions from the quarterly productivity data, that was just as true this time last year when various pundits leapt on the data to suggest that the Fair Work Act has damaged Australia’s productivity performance.
Fascinating how productivity growth seems not to be affected by industrial relations fiddling.
This is going straight in my graph folder alongside our tax collection as a % of GDP and our national debt. Comes in handy to have that stuff on your phone to debunk false claims on the spot.
Thanks.
A question from ignorance, why does the line jump so much (despite being seasonally-adjusted) and why is that fluctuation so consistent?
Hi Matt
Seems the BCA didn’t get the memo – BCA seeks PC probe into US v Australia “productivity gap”
The Business Council in a new report on major projects released today is seeking that the Productivity Commission inquire into project costs, including what it says is a 30% labour productivity deficit on resource projects – compared to US benchmarks – that is showing signs of blowing out to 60%.
The report, Pipeline or Pipe Dream? Securing Australia’s Investment Future, claims that “productivity factors for Australian resources projects are commonly set at about 30 to 35 per cent higher than the US Gulf Coast benchmark.
“This assumes a task in Australia requires 30 to 35 per cent more man-hours to perform,” says the Council, relying on research (The Performance of Australian Industrial Projects) it commissioned from Independent Project Analysis.
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