Labour productivity declines

Jamaica's labour productivity decreased annually at an average rate of 0.8 per cent over the period 2018–2022, according to a Planning Institute of Jamaica report, which has acknowledged the impact of the COVID-19 pandemic. 

The information is contained in the 2022 Economic and Social Survey (ESSJ), which was released on Tuesday. 

Labour productivity is referred to as the quantity of goods and services produced by each member of the labour force. 

The report said the decline over the five-year period was due to the employed labour force growing at a higher rate annually than real gross domestic product (GDP).

The average annual growth rate for the employed labour force was 2.0 per cent, while the average annual growth rate for GDP was 0.5 per cent.

The report said during 2020 labour productivity recorded its highest reduction over the five-year period, declining by 5.1 per cent.

It said the decline may be attributed to the COVID-19 pandemic and the public health and social measures implemented to curb the spread of the virus which resulted in negative economic growth.

The employed labour force and GDP decreased by 5.1 per cent and 9.9 per cent respectively.

In 2022, labour productivity increased by 0.4 per cent as the GDP recorded growth of 5.2 per cent, while the employed labour force grew by 4.8 per cent.

However, the ESSJ said the prospects for productivity in 2022 were enhanced by the economic recovery that took place during that year.

It said the lifting of all COVID-19 protocols under the Disaster Risk Management Act provided a boost to economic activity.

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