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Ecologically Sustainable Development
Environment Australia, 2002
ISBN 0 642 54771 8
Rationale for inclusion of issue
Economic capacity is an essential pre-requisite of economic development.
| Growth in Multi-factor Productivity (Gross product per combined unit of labour and capital) for latest year (1999-2000) | 1.1% |
Source: ABS Cat. No. 5204.0 Table 17
Rationale for selection of indicator
Multi-factor Productivity estimates are indexes of real GDP per combined unit of labour and capital. They have been derived by dividing chain volume estimates of market sector GDP by a combined measure of hours worked and capital services. (Chain volume estimates are obtained by applying the average movement in prices of the previous financial year to the current price estimates, in order to remove the direct effects of changes in prices over the period under review.)
More generally, Multi-factor Productivity measures increases in productivity in the economy. Productivity growth is the most important source of sustained growth in a country's real per capita income. Increases in productivity provide the basis for increased living standards by all individuals.
Explanatory and elaborative information
During 1999-2000, Multi-factor Productivity increased 1.1%. This was mainly due to a 2% increase in labour productivity.
Year |
Percentage Change (a) |
|
1964-65 to 1968-69 |
1.1 |
|
1968-69 to 1973-74 |
1.5 |
|
1973-74 to 1981-82 |
1.0 |
|
1981-82 to 1984-85 |
0.8 |
|
1984-85 to 1988-89 |
0.4 |
|
1988-89 to 1993-94 |
0.6 |
|
1993-94 to 1999-00 |
1.7 |
(a) Compound annual percentage change between MFP cycle peaks.
(a) Compound annual percentage change between MFP cycle peaks.
Source: ABS Cat. No. 5204.0