Productivity Statistics Summary 2019

Productivity SA is established in terms of section 31 of the Employment Services
Act, No. 4 of 2014 as a juristic person and an Entity of the Department of
Employment and Labour. Our mandate is to promote employment growth and
productivity thereby contributing to South Africa’s socio-economic development
and competitiveness.

The organisation offers Productivity and Competitiveness Improvement Solutions
to accelerate wealth and decent employment creation and assist businesses to
stabilise and become more profitable. This is through a suite of Business Process
Improvement tools and techniques which systematically help businesses of
different sizes, including all their subsidiaries, to optimise all aspects of underlying
processes in the business to achieve efficiencies, financial stability, sustainability,
wealth creation and job retention. Productivity SA’s value proposition is carried out
through three key programmes, namely: The Workplace Challenge (WPC), the
Productivity Organisational Solutions (POS), and the Turnaround Solutions (TAS).
Productivity SA’s programmes are aimed at enhancing the productive capacity and
operational efficiency of enterprises throughout the business lifecycle to accelerate
wealth and decent employment creation. The interventions include: developing
relevant productivity competencies and competitiveness in workplaces; promoting
and inculcating a productivity and competitiveness culture and mind-set and
generating and disseminating productivity and competitiveness related research
and information.

As part of our interventions, Productivity SA generates the Productivity Statistics
Report, which is an annual statistical publication of productivity trends and is
designed as a reference document for everyone interested in the economic sector
and industry productivity trends. The annual productivity measurement initiative is
in accordance with the strategic objectives of its key stakeholders, which include:
Government, Business and Labour. The detailed productivity measurement report
also highlights the overall impact of productivity changes on sustainability and
competitiveness of companies within all the economic sectors of South Africa.

Productivity SA collects data from official sources, namely, Statistics South Africa
and the South African Reserve Bank. The productivity indices are then calculated
using the data. These indices comprise Capital labour ratio, Labour productivity,
Capital productivity, Multifactor productivity, Compensation per employee as
well as Unit labour cost. The indices are calculated for the total economy, the 3
main sectors of the economy, the 10 main industries as well as the 8 selected
manufacturing sub sectors organised according to the Statistics South Africa’s
Standard Industrial Classification (SIC) of all Economic Activities (2013). The
methodology used in the calculation of the indices is in line with that recommended
by the Organisation for Economic Cooperation and Development’s (OECD)
Manual: Measuring Productivity (2017).