Last Year, Overall Industrial Labor Productivity Increased by 2.3%

Korea Productivity Center Releases
'2024 Labor Productivity Trends' Report

Last year, South Korea's overall industrial labor productivity index (based on value added) increased by 2.3% compared to the previous year. The Korea Productivity Center (KPC) announced on the 25th the '2024 Labor Productivity Trends (2020=100)' report, which includes this information.

The overall industrial labor productivity index rose to 110.1, a 2.3% increase from the previous year. This was due to a decrease in labor input alongside an increase in value added. Although construction investment declined and private consumption slowed compared to the previous year, value added increased by 2.1% as government consumption, facility investment, and export growth rates expanded. Additionally, while the number of workers increased, working hours decreased even more, resulting in a 0.2% decrease in labor input compared to 2023.

The manufacturing labor productivity index increased by 4.2% from the previous year to 114.3. The service sector labor productivity index rose by 2.3% from the previous year to 110.3.

The Korea Productivity Center stated, "In 2024, despite sluggish domestic demand, exports drove economic growth and led to productivity improvements. However, this year, the environment is expected to become more challenging due to increased global uncertainties such as tariff risks." They added, "To sustain labor productivity improvements, it is necessary to expand digital technologies such as AI and robotics by industry, along with active responses and cooperation among economic agents including corporate innovation and workforce capability enhancement."