NSCB - 2007 Factsheet - Pinoy Workers Productivity Improves in 2006

Pinoy Workers Productivity Improves in 2006
(FS-200702-NS1-03, posted 16 July 2007)

Labor productivity among Filipino workers increased to P38,460 in 2006, up by 4.4% from P36,822 in 2005. The 2006 growth was more than three times faster compared to the 2005 growth of 1.3%.

Among the major sectors, the industry sector posted the highest labor productivity level at P84,714 in 2006 followed by the services sector at P38,553 and the agriculture, fishery and forestry sector at P19,714.

Table 1. Labor Productivity* by Sector:
Philippines, 2004 to 2006

Sector	in Peso per employee			% Change
Sector	2004	2005	2006	04-05	05-06
Total	36,366	36,822	38,460	1.3	4.4
AFF	19,212	18,980	19,714	(1.2)	3.9
Industry	78,365	81,278	84,714	3.7	4.2
Services	36,181	36,828	38,553	1.8	4.7

* computed as real GDP divided by total employment in October rounds of the NSO's Labor Force Survey

AFF – Agriculture, Fishery and Forestry

Figure 1. Labor Productivity by Sector: 2004 – 2006 (in peso per employee)

For the period 2004-2006, labor productivity in both industry and services sectors showed an increasing trend while AFF slightly declined by 1.2% from 2004 to 2005 before registering a growth of 3.9% in 2006. Productivity in the services sector increased the highest from 2005 to 2006 by 4.7% followed by industry with 4.2% and AFF.

Figure 2. Growth Rates of Real GDP, Total Employment and Labor Productivity:
2004-05 and 2005-06

Estimates of real GDP indicated that the growth rate of the economy grew by 5.4% in 2006 from 4.9% in 2005 while data on employment showed a declining growth from 3.6% in 2005 to 1.0% in 2006. The accelerated growth of GDP and the decelerated growth of employment in 2006 resulted in the improvement of labor productivity growth.

Labor productivity is defined by the Organisation for Economic Co-operation and Development (OECD) to be "the ratio of a volume measure of output to a volume measure of input". Operationally, GDP or GVA are used as outputs while hours worked, workforce jobs or number of people in employment are used as inputs.

Sources of basic data: Consolidated Accounts, NSCB and Labor Force Survey, NSO

National Accounts of the Philippines

Labor and Employment Statistics