/* Google verification tag */ Indian School of Business: India lags Lanka, Bangladesh in labour efficiency
Indian School of Business

India lags Lanka, Bangladesh in labour efficiency

The United States remained the most productive economy in 2006 in terms of labour productivity per person, far outstripping its nearest rivals among other developed economies, the ILO said in its fifth edition of bienniel report titled "Key Indicators of the Labour Market".


US workers added 63,885 dollars (46,890 euros) of value to the economy per person, way ahead of its nearest competitors Ireland (55,986 dollars), Luxembourg (55,641 dollars), Belgium (55,235 dollars) and France (54,609 dollars).

However, the ILO noted that this is chiefly because Americans work more hours per year than in most other developed countries. When productivity is measured in terms of value added per hour worked, Norway came top with a level of 37.99 dollars -- though the US does then come second with 35.63 dollars.

In South Asia, including Bangladesh, India, Pakistan, Nepal and Sri Lanka, productivity rose by around 50 per cent during the same decade, the report said. However, India's labour productivity, which is pegged at $6,587, is way behind Sri Lankan's productivity level of $11,320, Pakistan's $8,247 and Bangladesh's $43,315.

South-east Asia includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam while East Asia comprises China, Hong Kong, Japan, South Korea and Taiwan.

But South-east Asia sharply reduced its rate of vulnerable employment - defined as when a worker is at risk of falling back into poverty - by 5.7 percentage points to 59.2 per cent. That put the region ahead of South Asia at 78.2 per cent but behind East Asia at 56.2 per cent.

Increases in productivity are mainly the result of companies combining capital, labour and technology better, the report said. A lack of investment in people, equipment and technology can lead to an under-utilization of the productive potential of labour.

Rising productivity levels in Asia are a boon and not a threat to the world economy, as growing prosperity spurs a demand for products made elsewhere in the world, the International Labour Organisation said. "Some see the impressive growth of productivity in Asia and South East Asia as a threat, but let me stress that it is in fact a positive trend for the world economy," said ILO employment executive director Jose Salazar-Xirinachs. "As their middle classes grow, they earn more money, they consume more goods and services, so these regions will become consumers for goods and services produced in Western countries and in the rest of the world," he added.

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Key Indicators of the Labour Market (5th Edition) - ILO

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