RE: MIXED RESULTS FOR SOUTH AFRICA IN PRODUCTIVITY STATISTICS
Ad mists a flailing economy; South Africa has notched a credible increase in Capital economy. However, despite the increase in Capital economy, Labour productivity and Multifactor productivity recorded a decline in growth in the same period. This is according to the latest Productivity Statistics released this week by the government entity responsible for promoting productivity and job creation in the country, Productivity SA.
Capital and Labour productivity measure the efficiency of capital investment and employees in production of output in the economy, respectively, while Multifactor productivity measures the level of technological progress and innovation. The 2019 Productivity Statistics show that Capital productivity increased to 1.3 percent in 2018 from 0.7 percent in 2017. The indicator recorded 5 successive years of positive growth between 2014 and 2018 following a decline in the indicator between 2011 and 2013. Capital productivity also experienced positive growth in 2010.
However, an increase in Labour input coupled with the decrease in Real output caused Labour productivity to decline to -0.9 percent in 2018 from 0.4 percent in 2017. The negative growth in 2018 followed 4 years of volatile growth Labour productivity between 2014 and 2017. The other negative growth in the indicator was realised in 2015 and 2016. The other decline in Labour productivity was realised in 2016 while positive growth was registered between 2010 and 2014. Strong positive growth in the indicator was recorded in 2013 while the opposite was true in 2016. The 2019 Productivity Statistics were released today by Productivity SA.
Multifactor productivity declined to -0.4 percent in 2018 from 1.7 percent in 2017. The other negative growth in the indicator was registered in 2015 and 2016 while positive growth was recorded in 2014 and 2017. Other related indicators show that Labour input accelerated to 1.5 percent in 2018 from 1.3 percent in 2017. The indicator realised positive growth between 2014 and 2018 where it recorded a relatively strong growth in 2015.
Productivity SA publishes Productivity Statistics on an annual basis to promote the understanding of the current and historical developments in resource efficiency and innovation in production. The Chief Economist at Productivity SA, Dr Leroi Raputsoane, says “The Statistics are important in that they help Government, business, workers and the general public to assess the ability of the economy to efficiently combine inputs to produce goods and services with the aim to contribute to the wellbeing of South Africans”
Dr Raputsoane outlines that “measuring productivity assists government and policymakers to determine appropriate policy interventions in the economy with the aim to enhance productivity and competitiveness. It also helps enterprises to track changes in business performance, production costs and the efficiency of production inputs as well as the labour federations to negotiate wages, among others.”
Productivity SA is a Department of Employment and Labour (DeL) established according to Section 31 of the Employment Services Act, No. 4. The Act enjoins the Productivity SA to develop relevant productivity competencies and competitiveness in workplaces, with a focus on the following core functions such as to promote employment and income growth, and workplace productivity. ENDS
For more information please contact the Productivity SA media liaison office, Maupi Monyemangene, on 011 848 5397/ 0824473232 or send an e mail: email@example.com