Labor Productivity Increased Year-on-Year in Q3

Korea Productivity Center Announces Labor Productivity Trends for Q3 2021

[Asia Economy Reporter Kim Cheol-hyun] Labor productivity in the third quarter of this year was found to have increased compared to the same period last year. The Korea Productivity Center (KPC, Chairman An Wanki) announced on the 28th the "2021 Q3 Labor Productivity Trends (2015=100)" including this information.

The labor productivity index for all industries (based on value added) was 113.6, an increase of 5.9% compared to the same period last year. While value added increased by 4.2%, labor input decreased by 1.6%, resulting in higher labor productivity compared to Q3 of the previous year. The Productivity Center explained, "Although construction investment decreased compared to the previous year, value added increased due to rises in private consumption, government consumption, facility investment, and exports," and "Regarding labor input, the number of workers increased, but working hours decreased even more significantly."

The manufacturing labor productivity index rose 6.9% year-on-year to 126.5. Value added increased by 5.7%, while labor input decreased by 1.2% due to reduced working hours despite an increase in the number of workers. By major sectors, computer, electronics, and optical equipment saw labor productivity increase by 11.0% compared to the same period last year. Value added increased by 11.1%, and although working hours decreased, labor input rose by 0.1% as the number of workers increased more significantly. Labor productivity in chemicals and chemical products increased by 3.6% year-on-year. Value added rose by 5.3%, and despite a decrease in working hours, labor input increased by 1.6% due to a rise in the number of workers. Labor productivity in machinery and equipment increased by 12.7% compared to the same period last year. Value added increased by 13.0%, and although working hours decreased, labor input rose by 0.2% as the number of workers increased.

The service sector labor productivity index increased by 5.8% year-on-year to 111.7. Value added rose by 3.9%, and although the number of workers increased, working hours decreased more significantly, leading to a 1.7% reduction in labor input. By major sectors, retail and wholesale labor productivity increased by 7.1% compared to the same period last year. Value added increased by 3.5%, while both the number of workers and working hours decreased, resulting in a 3.4% decrease in labor input. Professional, scientific, and technical services labor productivity increased by 1.3% year-on-year. Value added rose by 2.4%, and despite a decrease in working hours, labor input increased by 1.0% as the number of workers increased more significantly. Accommodation and food services labor productivity increased by 2.9% compared to the same period last year. Value added decreased by 2.0%, and both the number of workers and working hours decreased, leading to a 4.7% reduction in labor input.

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