45126-Invest. Qual-No111

Investment in QualityTABLE 6.4Productivity Growth (based on value-added)Annual Average Percentage Change1990-95 1995-00 2000-05Agriculture 2.5 4.6 3.1IndustryManufacturing 6.5 9.5 6.6Traditional 3.5 3.7 2.3Food 5.7 2.7 2.8High-tech 8.3 11.4 5.5Building 1.8 -2.7 1.8Utilities 3.3 7.0 6.1Market Services 0.6 2.6 3.0Distribution -1.7 6.4 3.1Transport & Comm. 3.7 7.5 4.6Other Services 0.1 -0.7 2.4Total Economy (GNP) 2.5 3.3 2.7Source: ESRI Medium-Term Review 2001-2007 on CD.Notes: The productivity figures are calculated as real value-added peremployee, except for the sectoral figures within manufacturing whichare based on the volume of output per employee. The recorded declinein productivity shown in the building sector in this table reflects anumber of special factors. First, it reflects a change in the compositionof activity. There has been particularly strong growth in house buildingactivity; this is more labour intensive than other construction activitysuch as road building. A second measurement issue is that theintroduction of the QNHS in 1998 showed employment in the buildingsector at a higher level than previously estimated. These measurementissues could result in an apparent fall in aggregate productivity in thebuilding sector, even if there is an increase in underlying productivity(due to factors such as more professional management). A third factor isthat new regulatory requirements may have reduced productivity in thebuilding sector.Keating (2000) looks at the effects of the changes over the five mainsectors in the National Accounts. He finds that over the period 1990to 1999, there was at this level of disaggregation a structural effect262