Labor Productivity in All Industries Up 3.0% Year-on-Year in Q2 This Year

Korea Productivity Center Announces Labor Productivity Trends for Q2 2022

[Asia Economy Reporter Kim Cheol-hyun] Labor productivity across all industries in the second quarter of this year increased by 3.0% compared to the same period last year. The Korea Productivity Center (KPC, Chairman An Wanki) announced this on the 27th in its "2022 Second Quarter Labor Productivity Trends" report.

According to KPC, the labor productivity index for all industries in the second quarter (based on value added) was 115.1, a 3.0% increase compared to the same period last year. Although construction and facility investments decreased compared to the second quarter of last year, value added rose by 3.6% due to increases in private consumption, government consumption, and exports. Regarding labor input, working hours decreased, but the number of workers increased more significantly, resulting in a 0.7% increase compared to the previous year.

The manufacturing labor productivity index rose by 4.2% year-on-year to 124.8. Value added increased by 2.9%, but the growth rate slowed due to reduced investment caused by external economic uncertainties such as the prolonged Russia-Ukraine war and supply chain crises. Labor input decreased by 1.2% as working hours declined despite an increase in the number of workers.

The service sector labor productivity index increased by 3.1% year-on-year to 114.0. Value added in the service sector grew by 4.5% as consumer spending increased in medical and health services, accommodation and food services, and entertainment, sports, and culture due to domestic demand recovery. Additionally, labor input rose by 1.3% as the number of workers increased with the improvement of face-to-face service industries following the return to normalcy after COVID-19.