Labor Productivity in Q2 This Year Up 3.0% YoY

Korea Productivity Center Announces Labor Productivity Trends for Q2 2023

In the second quarter of this year, labor productivity across all industries increased by 3.0% compared to the previous year. This was the result of a slowdown in value-added growth coupled with a decrease in labor input. The Korea Productivity Center (KPC, Chairman An Wanki) announced on the 25th the '2023 Second Quarter Labor Productivity Trends' report, which includes these details.

The labor productivity index for all industries (based on value-added) stood at 107.2, a 3.0% increase from the same period last year. Although construction investment and facility investment rebounded compared to last year, value-added increased by only 1.1% due to a slowdown in the growth rates of private consumption, government consumption, and exports. While the number of workers increased, labor input decreased by 1.8% compared to the second quarter of last year as working hours declined more significantly.

The manufacturing labor productivity index decreased by 0.4% year-on-year to 106.9. Both value-added and labor input declined, with the decrease in value-added being greater than that of labor input. Manufacturing production fell due to delayed global economic recovery and sluggish semiconductor market conditions, leading to a decrease in value-added compared to the same period last year. Although the number of workers increased, labor input decreased year-on-year as working hours declined more significantly.

The service sector labor productivity index rose by 3.3% year-on-year to 107.6. Value-added in the service sector increased due to the normalization of face-to-face activities and rising demand for health and care services. While the number of workers increased, labor input decreased compared to the previous year as working hours declined more significantly.

This content was produced with the assistance of AI translation services.