Interesting Mining Labour Productivity Chart From Stats NZ

From Statistics New Zealand’s fantastic yearbook, this index of labour productivity for mining jumped out at me. If you look at how other industries have fared – mining seems to have really dropped off.

I would argue that this chart supports my theory that more resource extraction would soak up excess labour – labour productivity hasn’t increased so much that a  marginal unit of labour is cost prohibitive as opposed to resource projects in Australia being cancelled because hundreds of guys on A$150,000+ adds up.

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It is also interesting because mining is a capital intensive industry. Look at the labour productivity of “information media and communications”, which I assume is ICT and software development:

Selection_130Isn’t it amazing what happens to labour productivity when your sector is a darling of policymakers and has relatively low capital requirements?

 

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