Framleiðni íslenskra atvinnuvega : skýrsla til Verslunarmannafélags Reykjavíkur

Abstract

During the years 1973–1984, multi-factor productivity (MFP) grew on average in all industries by 0.8% annually, while labour productivity increased by 1.7% and capital productivity decreased by 0.3%. MFP grew fastest in fishing, but declined in trade, construction and agriculture. The greatest increase of labour productivity occurred in agriculture and fishing, but productivity fell in the restaurant sector and in professional services. Capital productivity increased in public works and fishing but decreased in all other industries.

During the years 1985–1996/97, the average growth of MFP in all industries amounted to 1.3%, while labour productivity increased on average by 1.9% and capital productivity by 0.4%. MFP grew fastest in fishing and fish processing and did not decrease in any industry. The greatest increase of labour productivity took place in agriculture, fish processing and fishing, but it declined in the catering industry and in professional services. Capital productivity increased in public works and fishing, but fell in all other industries.

The development of productivity in Iceland during 1993–1996/97 was more favourable than in the previous two decades. The period witnessed an average MFP growth of 2.1%, up from 0.8% during 1973–1984 and 1.3% during 1985–1996/97. Labour productivity growth during 1993–1996/97 was 1.8%, which is similar to that experienced in earlier periods. Capital productivity increased by 2.5% during 1993–1996/97, which represents a great improvement over the 0.3% growth in 1973–1984 and the 0.4% growth during 1985–1996/97.

Productivity grew fastest in agriculture and manufacturing during 1993–1996/97, while the productivity growth in trade and the hotel and restaurant sectors was below average. Productivity in the fisheries did not increase as fast as in previous decades, while all measures of productivity in the fish processing industry show a decline. Labour productivity increased by 2.8–3.4% in the hotel and retailing sectors, but slightly less in wholesale, whereas it remained unchanged in the restaurant sector. The increase in labour productivity in financial institutions, insurance and professional services during 1993–1996/97 is also well above the average of all industries.

Productivity increased far more rapidly during this period than in the previous years. Of special note is the performance of the professional services, where labour productivity declined on average by 3.2% and 1.4% during 1973–1984 and 1985–1996/97 respectively, but rose by 1.6% on average in 1993–1996.