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Labor Productivity up in 2018 Due to Shorter Work Hours

Written: 2019-05-07 16:58:00Updated: 2019-05-07 18:29:30

Labor Productivity up in 2018 Due to Shorter Work Hours

Photo : KBS News

Labor productivity has improved across all industries last year due to shorter work hours following the introduction of the 52-hour workweek rule.

According to the Korea Productivity Center on Tuesday, the labor productivity index rose three-point-six percent year-on-year to 108-point-three in 2018.

The index is calculated by dividing output such as industrial production or added value with the amount of labor input.

Larger added value and smaller labor input push up the index.

As investment in construction and facilities decreased, growth rate of added value slightly edged down to two-point-five percent last year compared to three-point-three percent in 2017. Meanwhile, the growth rate of labor input contracted by more than one percent last year as shortened work hours spread.

Increased labor productivity last year is believed to be attributable to smaller labor input rather than higher added value.

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