Author: ofInterestNZ
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New Zealand private sector labour productivity fell 1.5% in the year to March 2009 despite the recession as employers hoarded workers, Statistics NZ figures show. Productivity often increases during a recession as businesses cut spending and employment more than output, but that has yet to be seen in the current recession. New Zealands weak productivity growth in recent years is a factor in weak GDP growth and inflation pressures. Unless New Zealand can significantly boost labour productivity, it is unlikely to boost real wages by much or have any chance of catching Australia.