Whole economy productivity and unit wage costs, Annual growth

In the third quarter of 2007, whole economy productivity growth (measured by output per worker) was 2.6 per cent compared with the same quarter a year ago, up from a growth of 2.5 per cent in the previous quarter. The increase in annual productivity growth was due to an increase in output.

On a quarter-on-quarter basis, productivity increased by 0.4 per cent in the third quarter, down from a growth of 0.5 per cent in the previous quarter.

The alternative measure of productivity, output per hour worked, showed that whole economy hourly productivity grew by 2.1 per cent in the third quarter of 2007 compared with the same quarter a year ago, the same as in the previous quarter.

In the third quarter of 2007, manufacturing productivity, on an output per job basis was 2.8 per cent higher than the same quarter of 2006, down from a growth of 3.3 per cent the previous quarter. This decrease in the growth rate of quarterly productivity was due to a decrease in the growth rate of manufacturing output.

On a quarterly basis, manufacturing productivity increased by 0.3 per cent in the third quarter of 2007, compared with the previous quarter, down from a growth of 1.2 per cent in the second quarter. This decrease in the growth rate of quarterly productivity was due to a decrease in the growth rate of manufacturing output.

Whole economy unit wage costs in the third quarter of 2007 were 1.5 per cent higher than the same quarter a year earlier, up from an increase of 1.4 per cent in the previous quarter. This is due to an increase in the growth rate of average wages and salaries.

Overall manufacturing unit wage costs in the third quarter of 2007 grew by 0.3 per cent compared with the same quarter a year earlier, down from an increase of 0.4 per cent in the previous quarter.

source: Office of National Statistics.