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Published: 15 October 2007

Local government total productivity started to grow in 2005

Correction to the statistical release dated 31 January 2007. Data for the year 2005 on the output and total productivity of health and at the total level have been corrected on 12 October 2007. The corrections are indicated in red.

According to corrected 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 0.3 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 3.0 per cent, while the volume of total input grew by 2.6 per cent.

The total productivity of local government did not fall in any of the industries examined in 2005. Total productivity of health remained unchanged, because both output and total input increased by roughly 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 2006, these corrected preliminary data released now show that the development in the total productivity of local government is 1.1 percentage points stronger. Growth in output is1.0 percentage points stronger, while growth in total input is 0.2 percentage points lower. The stronger growth in output, when compared with the first preliminary data, is primarily due to the stronger growth in the output of education and health than what was indicated by the preliminary data. In health the change is due to revisions in source data. In education the change is primarily 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

2005*	Output	Total input	Total productivity
Education	2.2	1.2	1.0
Health	4.4	4.4	0.0
Social work	1.5	1.4	0.1
Total	3.0	2.6	0.3
* Preliminary data; the data will become revised. Final data will be released in January 2008.

The combined total productivity of education, health and social work of local government has fallen by 7 per cent during 2000-2005. This fall is explained by the 6 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 9 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 2000-2005¹) (2000=100)

¹⁾ Data for 2005 are corrected in the figure.

The statistics are based on the national accounts data. At the moment, the change in output volume of health in 2005 released here differs from national accounts data, as it has not yet been possible to take the revisions to source data into account in national accounts calculations. The data for the year 2005 are preliminary and will become revised. Final data will be released in January 2008.

The corrected statistics released now were initially released on 31 January 2007. The source data on special medical care services available at the time were later found to contain errors. The correction affects the output and total productivity of health and all three industries in total.

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

• Volume changes in the output and total input and changes in total productivity of local government by industry in 2001-2005, per cent from the year before (15.10.2007)
• 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 (15.10.2007)

Figures

• Development in the total productivity and the volumes of output and total input of education of local government in 2000-2005 (2000=100) (15.10.2007)
• 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) (15.10.2007)
• Development in the total productivity and the volumes of output and total input of health of local government in 2000-2005 (2000=100) (15.10.2007)
• Development in the total productivity and the volumes of output and total input of social work of local government in 2000-2005 (2000=100) (15.10.2007)
• Development in the total productivity of education, health and social work of local government in 2000-2005 (2000=100) (15.10.2007)

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Last updated 15.10.2007