Australia Yearbook - 2001

570 Year Book Australia 2001
industry’s average increase in gross value added
over the same period was 1%, and hours worked
fell by an annual average of 4% over the period.
The Mining industry experienced growth on
average of 5% per year over the period from
1990–91 to 1998–99 (although decreasing by
2% in 1998–99); this industry’s average increase
in gross value added over the same period was
4%, and hours worked fell by an annual average
of 1% over the period.
As indicated in the table, Accommodation, cafes
and restaurants experienced an average increase
of 1% in labour productivity over the period from
1990–91 to 1998–99 with an increase of 7% in
1998–99. Labour productivity increased for this
industry because the the average growth in the
chain volume estimates of gross value added
(4%) exceeded the average growth in hours
worked (3%). Similarly, labour productivity in the
Cultural and recreational services industry fell on
average by 1% over the period from 1990–91 to
1998–99 because hours worked grew faster than
gross value added.
These measures of labour productivity should be
treated with care. Changes in the composition of
labour, which are not captured in the hours
worked measure, can affect output, which can
also be affected by changes in inputs other than
labour (e.g. capital). Finally, the extent to which
the capacity of inputs is used can affect output
per hour worked; for example, there will be an
apparent increase in productivity when an input
that was previously not fully used becomes fully
used. The average increase in labour productivity
across all industries between 1997–98 and
1998–99 was 3%; over the period from 1990–91
to 1998–99 the average annual increase was 2%.
Industry performance
The relative performance of industries, like the
relative performance of businesses, can be
analysed using a combination of quantitative
estimates (of the kind shown in earlier tables)
and performance ratios. Various ratios commonly
used in financial analysis are included in table 13.6.
These show, for example, that in 1998–99:
industries which converted the highest
proportion of their sales into profit (as
represented by the profit margin) were
Finance and insurance, Electricity, gas and
water supply and Communication services;
businesses in Construction, Communication
services and Retail trade reported, on average,
the highest return on assets;
The industries with the highest returns on net
worth were Construction, Communication
services and Retail trade; and
the greatest ability to service debt charges from
profits (as represented by the interest coverage
ratio) was recorded for the Cultural and
recreational services, Construction and Private
community services.
13.5 INDEXES OF GROSS PRODUCT(a) PER HOUR WORKED, By Industry(a)(b)
1998–99
Change
from
1997–98
Average annual rate of
growth 1990–91 to
1998–99
Industry
Index number
%
%
Agriculture, forestry and fishing 114.2 14.2 3.7
Mining 97.6 –2.4 5.1
Manufacturing 104.3 4.3 3.0
Electricity, gas and water supply 94.9 –5.1 6.0
Construction 99.4 –0.6 2.2
Wholesale trade 105.7 5.7 5.0
Retail trade 99.8 –0.2 2.4
Accommodation, cafes and restaurants 107.1 7.1 1.0
Transport and storage 99.9 –0.1 2.7
Communication services 106.2 6.2 8.6
Finance and insurance 103.0 3.0 5.2
Cultural and recreational services 101.3 1.3 –1.0
All industries 102.6 2.6 2.4
(a) Reference year for chain volume measures is 1997–98. (b) Estimates presented in this table relate only to industries in the
market sector.
Source: Australian System of National Accounts, 1998–99 (5204.0).