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Queensland Economic Advocacy Solutions

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Queensland's productivity continues to rise in 2017-18

QEAS has previously had a very close interest in Queensland productivity given the profound importance it has for the economy and living standards. Productivity measures the efficiency with which combined labour and capital inputs are transformed into product or service outputs which is called ‘multifactor productivity’ (productivity). I really like to think of productivity as doing more with the same or the same with less. 

Latest data by the Australian Bureau of Statistics reveals Queensland's productivity improvement continues with moderate positive growth of 0.8 per cent in 2017-18 and compares to national productivity growth over the same period of 0.5 per cent.

 

Queensland's multifactor productivity growth in 2017-18 of 0.8 per cent compares to the State's long-term average over the past two decades of 0.6 per cent.

This is good news as it means our economy is transforming inputs into outputs more efficiently and is producing more goods and services from the same quantity of labour, capital, land, energy and other resources.  This improved production efficiency will inevitably generate higher real incomes and lead to long-term improvements in our economy’s living standards for all Queenslanders to hopefully benefit from.

Finally growth in Queensland's output relies on a combination of labour, capital as well as productivity. The strong economic output growth recorded for Queensland in 2017-18 relied predominantly on hours worked but also in part on capital and productivity gains. Expressed another way it not just what we use to produce something it is how we do it.

 

 

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