The lucky stroke crippled me and gave me a new life. Now I'm just unbelievably good looking and modest. Always turn a little to the left.
5 Nov 2013
Australian labour is very productive. WHAT ABOUT CAPITAL INVESTMENT it's been asleep for years!
Poor productivity: blame low capital investment.
The other side of the productivity coin is – sometimes good workers should blame their tools or equipment, it's often outdated.
The productivity debate in Australia is massively distorted by a blind spot, revealed again by the lack of coverage of theannual national accounts figures released on Friday, which showed labour productivityincreased but capital productivity fell.
Labour productivity and capital productivity (which measures the increase in output per dollar spent on capital expenditure) combine to produce the overall productivity measure known as “multi-factor productivity”. Australia’s multi-factor productivity has fallen seven out of the past 10 years, yet during that time labour productivity has continued to rise, while capital productivity has fallen.
And yet it is the labour side that gets the attention and criticism.
Imagine for a moment that labour productivity had fallen 3.8% in the past year as had capital productivity (the second biggest such fall in the past 18 years). Imagine as well that labour productivity was now 27% below where it was in 1995.
Our nation’s serious newspapers would be filled to overflowing with editorials about the urgent need for politicians to do something about productivity. There would be calls from business groups like the Business Council of Australia for industrial relations legislation to be changed urgently to arrest the slide.
Labour productivity in Australia is now 48% above where it was in 1995.
In the past year, gross value added (output in real terms) per hour of labour grew by 2.1% – well above the 35-year average of 1.6%.
For the 18th year in a row, labour productivity in 2012-13 grew faster than capital productivity.
And in 2012-13, for the 11th consecutive year, capital productivity has declined.