Statistics Mauritius notes year-on-year increase in labour & capital index in 2014
Statistics Mauritius report on productivity and competitiveness indicates higher GDP growth rate in 2014 and the output of the economy is increasing faster than the labour units used in production upon higher labour productivity.(Image: brandandmortar.com)
Statistics Mauritius published on Tuesday the productivity and competitiveness indicators report for the period 2004-14 for the overall economy, the manufacturing sector and Export Oriented Enterprises (EOE), which analyses the evolution of the indicators of productivity.
According to the trends observed for the evolution of various measures of productivity, between 2004 and 2014, Statistics Mauritius noted an annual average increase of 2.7% in the index of labour productivity. The index of labour productivity is a measure of real output (GDP) per worker for the whole economy.
The index increased to 117.0 points in 2014, moving from 89.3 points in 2004. The labour productivity index for 2014 grew 2.2% compared to the growth rate of 0.2% in 2013 because of a higher GDP growth of 3.5% coupled with a lower growth of 1.3% in labour input in 2014.
It may be noted that the GDP growth rate in 2014 was 3.5%, higher than the rate registered in 2013 at 3.2%.
The Statistics Mauritius report also showed that after five consecutive years of decline, the capital productivity index, which is a measure of real GDP per unit of capital, registered an increase of 0.7% in 2014, explained by a lower growth in capital input compared to that of GDP.
However, over the longer term from 2004-14, capital productivity declined from 101.1 points in 2004 to 94.9 points in 2014, that is an average decrease of 0.6% a year.
For the period 2004 to 2014, the Gross domestic product (GDP) registered a real growth of 4% a year, on an average. Over the same period in 2014, capital input and labour input grew by 4.7% and 1.3% respectively.
Indeed, the output of the economy is increasing faster than the labour units used in production, given that labour productivity increased by 2.7% between 2004 and 2014, according to Statistics Mauritius.
On the other hand, the capital productivity decreased, because the real GDP increased at a slower pace than capital inputs used in the economic production process.
Statistics Mauritius also published data on productivity for two sectors, namely manufacturing sector and Export Oriented Enterprises, showing that in 2013 the manufacturing sector’s Unit Labour Cost (ULC) grew by 1.8% after a lower growth of 0.4% in 2013 and for the EOE sector, Unit Labour Cost (ULC) registered an increase of 4.7% in 2014 after a higher growth of 6.5% in 2013.
Finally in Dollar terms, ULC in 2014 increased by 2.7% for the whole economy, 2.1% for Manufacturing and 5.1% for EOE.