Whole economy productivity and unit wage costs, Annual growth

In the first quarter of 2008, whole economy productivity growth (measured by output per worker) was 0.6 per cent compared with the same quarter a year ago, down from a growth of 1.6 per cent in the previous quarter. The fall in annual productivity growth was due to a decrease in the growth rate of output and an increase in the growth rate of whole economy workers.

On a quarter-on-quarter basis, productivity decreased by 0.1 per cent in the first quarter, down from a flat movement in the previous quarter.

The alternative measure of productivity, output per hour worked, showed that whole economy hourly productivity grew by 0.3 per cent in the first quarter of 2008 compared with the same quarter a year ago, down from 2.1 per cent in the previous quarter.

In the first quarter of 2008, manufacturing productivity, on an output per job basis, was 2.6 per cent higher than the same quarter of 2007, up from a growth of 2.1 per cent in the previous quarter. This increase in the growth rate of quarterly productivity was due to an increase in the growth rate of manufacturing output, partially offset by a decrease in the contraction rate of manufacturing jobs.

On a quarter-on-quarter basis, manufacturing productivity increased by 1.0 per cent in the first quarter of 2008, compared with the previous quarter, up from a growth of 0.3 per cent in the fourth quarter of 2007. This increase in the growth rate of quarterly productivity was due to an increase in manufacturing output growth and an increase in the quarter-on-quarter contraction rate of manufacturing jobs.

Whole economy unit wage costs in the first quarter of 2008 were 2.6 per cent higher than the same quarter a year earlier, up from an increase of 2.1 per cent in the previous quarter. This is due to a decrease in the growth rate of output per worker.

Overall manufacturing unit wage costs in the first quarter of 2008 grew by 1.2 per cent compared with the same quarter a year earlier, the same as in the previous quarter.