Local government total productivity started to grow in 2005

According to revised preliminary data in Statistics Finland statistics on local government productivity, the combined total productivity of education, health and social work of local government grew by 1.0 per cent in 2005. This growth was due to stronger growth in output volume than in total input volume. The volume of output grew by 3.7 per cent, while the volume of total input grew by 2.6 per cent.

The total productivity of local government grew in all of the three industries under examination during 2005, for the first time in the 2000s. Total productivity of health grew by roughly 1.5 per cent due to the 6 per cent growth in output, even though total input also increased by nearly 4.5 per cent. The total input of education grew by a good one per cent, but the two per cent increase in output led to a one per cent growth in total productivity. The total productivity of social services remained nearly level with the previous year, as both output and total input grew by roughly as much.

Compared with the first preliminary data released in August and September, the revised preliminary data released now show that the development in the total productivity of local government is 1.8 percentage points stronger. Growth in output is 1.7 percentage points stronger, while growth in total input is 0.2 percentage points lower. The clearly stronger growth in output, when compared with the first preliminary data, is primarily due to the stronger growth in the output of health and education than what was indicated by the preliminary data. In health the change was primarily due to the revisions in source data and the correction of errors detected in the data. In education the change was due to national accounts classification adjustments.

Volume changes in the output and total input and changes in total productivity of local government by industry in 2005, per cent from the year before

	Output	Total input	Total productivity
Education	2.2	1.2	1.0
Health	6.0	4.4	1.6
Social work	1.5	1.4	0.1
Total	3.7	2.6	1.0

The combined total productivity of education, health and social work of local government has fallen by over 6 per cent during 2000-2005. This fall is explained by the just short of 7 per cent growth in the volume of output when compared with the nearly 14 per cent growth in the volume of total input. The total productivity of local government has fallen in all industries under examination during the 2000s. The total productivity of social services has fallen by over 8 per cent, that of health by roughly 7 per cent and that of education by over 3 per cent.

Development in the total productivity and the volumes of output and total input of education, health and social work of local government in 2000-2005 (2000=100)

The statistics are based on the national accounts data. The change in output volume of health in 2005 released here differs from the simultaneously released national accounts data, as it has not yet been possible to take the last minute revisions to source data into account in national accounts calculations.

Source: Statistics on local government productivity. Statistics Finland

Inquiries: Mr Sami Hautakangas +358 9 1734 3540, julkinen.tuottavuustilasto@stat.fi

Director in charge: Mr Ari Tyrkkö

Tables

Appendix tables

Figures

Last updated 31.1.2007

Referencing instructions:

Statistics: Statistics on local government productivity [e-publication].
ISSN=1797-3260. 2005. Helsinki: Statistics Finland [referred: 22.11.2024].
Access method: http://www.stat.fi/til/kktu/2005/kktu_2005_2007-01-31_tie_001_en.html