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Labor Productivity in Q2 Rises Faster than US, Japan

Written: 2018-11-12 16:52:24Updated: 2018-11-12 17:01:46

Labor Productivity in Q2 Rises Faster than US, Japan

Photo : YONHAP News

Labor productivity in South Korea in the second quarter increased faster than in the United States or Japan.

According to data released by the Korea Productivity Center on Monday, the labor productivity index for all industries rose four percent year-on-year to record 109 during the April to June period.

The index has risen for five consecutive quarters since last year's second quarter.

The index measures the yield as in added value or industrial output divided by the labor input. The higher the figure, the better the productivity, meaning more added value generated through less labor input.

Improved productivity is attributed to increased added value, which expanded two-point-seven percent on-year in this year's second quarter, thanks to brisk exports and a rise in government spending and private consumption. 

At the same time, labor input fell one-point-two percent as work hours decreased by a greater degree than an increase in the number of workers.

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