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This issue of the Economic and Social Indicators presents Productivity and Competitiveness Indicators for the years 2011 to 2021 for the total economy, the manufacturing sector and Export Oriented Enterprises (EOE).
During the period 2011 to 2021, the Gross Value Added (GVA) in real terms grew by an annual average of 1.6%. During the same period, the real output of the Manufacturing sector fell by 0.1% annually and that of Export Oriented Enterprises (EOE) decreased at an annual rate of 3.3%.
3. Labour input (employment) and labour productivity
From 2011 to 2021, labour input for the whole economy fell by an average of 0.3% annually, while that for the manufacturing sector and EOE declined by 1.6% and 4.4% respectively. Labour productivity, as measured by real output per person engaged, grew by an average of 1.9% annually for the whole economy. During the same period, labour productivity in the Manufacturing sector registered annual growth of 1.5% and that for the EOE sector witnessed an annual rise of 1.1%.
In 2021, labour input for the whole economy fell by 6.4%, after declining by 5.5% in 2020; while GVA increased by 4.2% in 2021, after a contraction of 14.4% in 2020. Thus, labour productivity for the economy rose by 11.4% in 2021, after a decline of 9.4% in 2020. Labour productivity for the Manufacturing sector increased by 13.6% in 2021, compared to a decline of 11.6% in 2020 and that of EOE witnessed a rise of 20.4% in 2021 after a fall of 15.1% in 2020.
4. Capital input and capital productivity.
During the period 2011 to 2021, capital input grew at an average annual rate of 2.5% for the total economy whereas declines of 3.0% and 2.4% were recorded in Manufacturing and EOE respectively. Capital productivity defined as the ratio of output to capital input, fell by 0.8% annually for the economy during the period 2011 to 2021. During the same period, an annual increase of 3.0% was registered in capital productivity for Manufacturing sector whilst that of EOE witnessed an annual average fall of 0.9%.
Capital productivity for the whole economy rose by 4.8% in 2021 compared to a fall of 15.1% in 2020, and that for Manufacturing increased by 11.8% in 2021 after declining by 12.7% in 2020. For EOE, it increased by 12.3% in 2021 after a decline of 17.6% in 2020.
5. Average compensation of employees and Unit Labour Cost (ULC)
From 2011 to 2021, average compensation of employees increased by an average of 4.9% annually for the whole economy and by 2.3% for Manufacturing sector and 2.9% for EOE. ULC defined as the remuneration of labour (compensation of employees) per unit of output, grew at an average annual rate of 2.9% for the total economy, 0.8% for Manufacturing sector and 1.8% 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, decreased at an average annual rate of 0.8% for the total economy. It registered an annual fall of 2.8% for Manufacturing sector. For EOE, it fell annually by 1.8%.
In 2021, ULC (in rupees) for the economy rose by 4.1% after an increase of 9.1% in 2020 and that of the manufacturing sector rose by 8.5% after increasing by 7.3% in 2020. For EOE, ULC registered an increase of 9.3% in 2021 after a rise of 7.4% in 2020. In Dollar terms, ULC in 2021 fell by 1.6% for the whole economy and that for Manufacturing sector increased by 2.5%, whilst it increased by 3.3% for EOE.
05 August 2022