Q1 Total Industry Labor Productivity Up 7.1% YoY

Korea Productivity Center Announces Labor Productivity Trends for Q1 2021

[Asia Economy Reporter Kim Cheol-hyun] The labor productivity index (based on value added) across all industries in the first quarter of this year increased compared to the same period last year. The Korea Productivity Center (KPC, Chairman An Wanki) announced this on the 29th in its '2021 First Quarter Labor Productivity Trends' report.

The labor productivity index for all industries rose by 7.1% year-on-year to 113.7. While value added increased by 2.0%, labor input decreased by 4.8%, resulting in higher labor productivity compared to the first quarter of last year. Specifically, although construction investment declined compared to the same period last year, value added increased due to a rebound in private consumption and growth in facility investment, government consumption, and exports. The decrease in labor input was due to reductions in both the number of workers and working hours.

The manufacturing labor productivity index increased by 9.3% year-on-year to 120.4. Value added rose by 4.1%, while labor input decreased by 4.8% due to reductions in both the number of workers and working hours. By major sectors, the computer, electronics, and optical equipment sector saw labor productivity increase by 11.6% year-on-year. Value added increased by 9.3%, and despite an increase in the number of workers, labor input decreased by 2.1% due to reduced working hours. The machinery and equipment sector's labor productivity rose by 9.7% year-on-year. While value added increased by 4.7%, labor input decreased by 4.6% as both the number of workers and working hours declined. The automobile and trailer sector's labor productivity increased by 8.1% year-on-year. Value added rose by 8.2%, and although the number of workers decreased, labor input increased by 0.1% due to longer working hours.

The service sector labor productivity index increased by 6.5% year-on-year to 114.5. Value added rose by 1.1%, while labor input decreased by 5.0% due to reductions in both the number of workers and working hours. By major sectors, retail and wholesale labor productivity increased by 9.3% year-on-year. Value added increased by 3.0%, but labor input decreased by 5.7% due to reductions in both the number of workers and working hours. Accommodation and food services labor productivity rose by 3.1% year-on-year. Value added decreased by 12.4%, and labor input dropped by 15.0% due to simultaneous decreases in the number of workers and working hours. Financial and insurance services labor productivity increased by 17.7% year-on-year. Value added rose by 10.4%, but despite an increase in the number of workers, labor input decreased by 6.2% due to reduced working hours.