'Raising the productivity levels of workers on the lowest incomes in the poorest countries is the key to reducing the enormous decent work deficits in the world,' said Mr Somavia. -- PHOTO: AFP
GENEVA - RISING productivity levels in Asia are a boon and not a threat to the world economy, as growing prosperity spurs a demand for products made elsewhere in the world, the International Labour Organisation (ILO) said on Monday.
The United States remained the most productive economy in 2006 in terms of labour productivity per person, far outstripping its nearest rivals among other developed economies, the ILO said in its 'Key Indicators of the Labour Market' report.
US workers added US$63,885 (S$96,100) of value to the economy per person, way ahead of its nearest competitors Ireland (US$55,986), Luxembourg (US$55,641), Belgium (US$55,235) and France (US$54,609).
However, the ILO noted that this is chiefly because Americans work more hours per year than in most other developed countries. When productivity is measured in terms of value added per hour worked, Norway came top with a level of US$37.99 - though the US does then come second with US$35.63.
East Asia
East Asia has seen the fastest growth in productivity levels, which have doubled in the decade to 2006, the ILO said. Output per worker was up to one-fifth of the level of industrialised countries in 2006, from one-eighth in 1996.
Some commentators in industrialised countries fear that rising Asian productivity will damage their own markets but the ILO painted the picture of a 'virtuous circle' as growing productivity boosts prosperity and thus demand for other products.
'Some see the impressive growth of productivity in Asia and South-east Asia as a threat, but let me stress that it is in fact a positive trend for the world economy,' said ILO employment executive director Jose Salazar-Xirinachs.
'As their middle classes grow, they earn more money, they consume more goods and services, so these regions will become consumers for goods and services produced in Western countries and in the rest of the world,' he added.
In contrast, sub-Saharan Africa still lags far behind the rest of the world, with productivity levels just one-twelfth of those in developed countries.
The ILO said the region required a fundamental change in how the labour market was promoted.
'It is essential that these countries put unemployment and decent work at the centre of their economic and social policies,' Mr Salazar-Xirinachs said.
ILO Director General Juan Somavia also said the wide gaps in productivity and wealth were a 'major concern,' and the organisation estimates that there are around 1.3 billion working poor who live with their families on less than US$2 per day per family member.
'Raising the productivity levels of workers on the lowest incomes in the poorest countries is the key to reducing the enormous decent work deficits in the world,' the director general said.
The ILO defines 'decent work' as that which is productive and delivers a fair income, security in the workplace and social protection for families, as well as guaranteeing labour rights and freedom of self-expression.
'Hundreds of millions of women and men are working hard and long but without the conditions they need to lift themselves and their families out of poverty; they risk falling deeper into poverty,' Mr Somavia warned. -- AFP
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