François Lequiller OECD Using National Accounts Data for Productivity Analysis STD/NAFS(2005)25 François Lequiller OECD

Objectives of the paper Is a continuation of 2004 paper promoting the use of national accounts data on labour input for productivity analysis Progress on the recommendations made in 2004: Compile and transmit « hours worked » in national accounts 2. Compile and transmit « business sector » data 3. Compile and transmit data on « persons » 4. Explain differences between NA employement and labour force statistics

Productivity comparisons in the OECD To compare productivity growth is easier than to compare productivity levels (PPPs…) However, international users want to compare levels Example: EU countries have set benchmark to the US in terms of levels (Lisbon objectives) Canada and US productivities are compared in levels OECD disseminates data on productivity levels

I. Total hours in national accounts The numerator of labour productivity is GDP It is natural that the denominator, the measure of labour input, is consistent with numerator National accounts data should be used to compile the denominator of labour productivity Table 2 (page 3) show the substantial progress made during 2005 : Austria, Czech R, France, Italy, Netherland, Slovak R, Spain, Switzerland, USA are now transmitting total hours worked.

Recommendation 1 Australia, Belgium, Iceland, Ireland, Japan, Luxembourg, Mexico, New Zealand, Poland, Portugal, Turkey, UK should compile (and transmit to OECD) total hours worked (employees and self-employed) in the framework of national accounts.

II. Business sector Pending better measurement of non market sector, economists remain interested by business sector productivity OECD had started last year a special questionnaire on the business sector. See Table 3, page 4: Thirteen OECD countries have transmitted data and we are grateful for this transmission: Austria, Belgium, Canada, Czech R, Finland, Japan, Netherlands, Norway, Poland, Portugal, Slovak R, Sweden, Switzerland, USA

Recommendation 2 Australia, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Korea, Luxembourg, Mexico, New Zealand, Slovak Republic, Spain, Turkey, UK should envisage compiling volume value added, employment and GFCF of the business sector. A new round of questionnaire on the business sector will be circulated in the beginning of 2006.

III. Persons Most OECD countries (24/30) report persons (and not jobs) SNA should be clarified to avoid excluding the concept of « persons ». ESA, which recognises the concept of persons, will be used as an input for this clarification. This clarification should (hopefully) be adopted by the 2006 AEG. Recommendation 3: The five OECD countries (Austria, Canada, Greece, Japan, UK) which do not yet report persons should report data in terms of persons as well as in terms of jobs (USA has done it in 2005).

Comparison with labour force statistics The increasing use of national accounts employment data will draw attention to the differences between national accounts employment data and official labour statistics National accounts will be fully convincing is they can explain clearly the adjustments included to the original data A questionnaire was circulated last year by the OECD comprising textual and quantitative information on these differences It was agreed that OECD covered non EU countries, and Eurostat covered EU countries. But Eurostat was delayed.

First results The first results are therefore limited to 7 countries.: Australia, Canada, France, Japan, Mexico, New Zealand, USA. We thank these countries for transmitting this useful information (see pages by country and quantified tables by country in end of paper). Recommendation 4: European countries will receive the questionnaire during 2005-2006. They are requested to respond as best as possible.

Elements of differences See Table 6, page 7 Adjustments on the coverage of population (territorial, military) are quite limited (around 1%). Only one country reported an adjustment for underground economy. More information when more responses from countries. This information will be posted in the metadata of OECD databases.

Conclusion We are grateful for your comments on Total hours in the national accounts? Business sector data? Persons? Differences between NA and labour force statistics?