Manufacturing and agriculture contributing less to productivity growth

The primary contributors of labour productivity growth in the business sector of New Zealand’s economy are shifting away from manufacturing and agriculture, according to productivity estimates released today by Statistics New Zealand.

“Manufacturing and agriculture, although still growing, now contribute less to business sector labour productivity growth, while retail, wholesale, and the finance and insurance industries have become more significant drivers,” economic statistics development manager Jude Hughes said. Industry Productivity Statistics 1978–2008, the first report of its kind in New Zealand, looks at productivity growth across 23 industries over a 30-year period.

The communication services industry posted the strongest labour productivity growth (up 9.3 percent annually), but its contribution to business sector growth has declined in relative terms. The only industry in which labour productivity declined from 1978–2008 was the accommodation, cafés, and restaurants industry (down 1.3 percent annually).

Other highlights include:
Agriculture, forestry, and fishing labour productivity grew on average 4.0 percent per year, with its strongest period of growth from 1985–1997.
Electricity, gas, and water supply productivity grew 4.4 percent.
Transport and storage productivity grew 3.6 percent.
Finance and insurance productivity grew 3.4 percent.

Industry Productivity Statistics 1978–2008, along with 72 supplementary tables, can be downloaded from the Statistics NZ website, www.stats.govt.nz/productivity. Data and breakdowns are also available on Infoshare.