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This issue of the Economic and Social Indicators presents Productivity and Competitiveness Indicators for the years 2010 to 2020 for the total economy, the manufacturing sector and Export Oriented Enterprises (EOE).
During the period 2010 to 2020, the Gross Value Added (GVA) in real terms grew by an annual average of 1.5%. During the same period, the real output of the Manufacturing sector fell by 0.7% annually and that of Export Oriented Enterprises (EOE) decreased at an annual rate of 3.6%.
3. Labour input (employment) and labour productivity
From 2010 to 2020, labour input for the whole economy grew by an average of 0.3% annually, while that for the manufacturing sector and EOE declined by 1.3% and 3.4% respectively. Labour productivity, as measured by real output per person engaged, grew by an average of 1.2% annually for the whole economy. During the same period, labour productivity in the Manufacturing sector registered annual growth of 0.6% whilst that in the EOE sector witnessed an annual fall of 0.2%.
In 2020, labour input fell by 5.5%, compared to an increase of 1.6% in 2019; while GVA contracted by 14.7% in 2020, after an increase of 3.2% in 2019. Thus, labour productivity for the economy declined by 9.7% in 2020, after an increase of 1.6% in 2019. Labour productivity for the Manufacturing sector fell by 12.5% in 2020, compared to a growth of 1.6% in 2019 and that of EOE witnessed a decline of 14.5% in 2020 after a rise of 6.6% in 2019.
4. Capital input and capital productivity.
During the period 2010 to 2020, capital input grew at an average annual rate of 3.0% for the total economy whereas declines of 2.6% and 2.5% were recorded in Manufacturing and EOE respectively. Capital productivity defined as the ratio of output to capital input, fell by 1.5% annually for the economy during the period 2010 to 2020. During the same period, an annual increase of 2.0% was registered in capital productivity for Manufacturing sector whilst that of EOE witnessed an annual average fall of 1.1%.
Capital productivity for the economy fell by 15.5% in 2020 compared to a fall of 0.3% in 2019, and that for Manufacturing declined by 13.6% in 2020 after an increase of 2.8% in 2019. For EOE, it fell by 17.1% in 2020 after a decline of 1.0% in 2019.
5. Average compensation of employees and Unit Labour Cost (ULC)
From 2010 to 2020, average compensation of employees increased by an average of 4.0% annually for the whole economy and by 3.0% for Manufacturing sector and 4.9% for EOE. ULC defined as the remuneration of labour (compensation of employees) per unit of output, grew at an average annual rate of 2.8% for the total economy, 2.4% for Manufacturing sector and 5.1% for EOE, as a result of higher growths in average compensation of employees compared to labour productivity.
During the same period, due to depreciation of the rupee, ULC in Dollar terms, increased at an average annual rate of 0.4% for the total economy. It registered an annual “no growth" for Manufacturing sector. For EOE, it increased annually by 2.7%.
In 2020, ULC (in rupees) for the economy rose further by 7.9% after an increase of 0.2% in 2019 and that of the manufacturing sector rose by 7.3% after increasing by 1.7% in 2019. For EOE, ULC registered an increase of 12.2% in 2020 after a rise of 6.6% in 2019. In Dollar terms, ULC in 2020 fell by 1.9% and 2.4% for the whole economy and Manufacturing sector respectively, whilst it increased by 2.0% for EOE.
06 August 2021