Manufacturing, construction drag down productivity

Photo / Thinkstock

Manufacturing and construction were the main contributors to a 1.2 per cent fall in multifactor productivity from 2006 to 2009, Statistics New Zealand said today.

"However the finance and insurance industry performed strongly, alongside the communication industry, and the long-term average remains positive - at 0.9 per cent per year," economic statistics development
manager Jude Hughes said.

Multifactor productivity measures how effectively existing resources such as workers and capital are used to produce goods and services.

Labour productivity, which is the amount of goods and services produced per worker, did not grow in the three years to 2009.

Manufacturing and construction drove the weak labour productivity performance, but these industries were offset by the finance and insurance, agriculture, forestry and fishing, retail trade, and communication industries.

Despite no growth from 2006 to 2009, long-term labour productivity growth (1978-2009) remained positive at 2 per cent.

With the exception of accommodation, cafes, and restaurants, all industries had positive growth - with communications, agriculture, and transport and storage having the highest.

Productivity statistics are available for 24 industries, covering 80 per cent of the economy.

Excluded are government administration and defence, health, and education.

- NZ HERALD ONLINE