Mining productivity falls: report

Labour productivity growth in mining has slumped almost 6 per cent in the year to March.

As claims mining investment has peaked, Price Waterhouse Coopers' labour productivity report shows mining labour productivity for the 12 months to March was 5.7 per cent, despite an 8 per cent increase in output and a 15 per cent increase in hours worked.

Overall national labour productivity increased 1.9 per cent falling short of last year’s 2.4 per cent.

The result brings the total growth rate below the average rate of 3 per cent achieved between 1997 and 2003, The West Australian reports.

According to the report, the fall was driven by negative labour productivity growth in the mining sector.

"A deterioration of labour productivity in the mining sector continued as productivity in the sector fell by 5.7 per cent," the report said.

"However mining productivity improved for the third consecutive quarter, suggesting the sector may be recovering."

PwC partner and economist Jeremy Thorpe said the 8 per cent output increase dismisses the rhetoric that the mining boom is ending.

“This reflects a natural uptick that was foreshadowed late last year as the industry begins to move from the investment to production phase,” he said.

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