Labour productivity statistics: A reality check for the Norwegian construction industry

Ahmad, S B S; Mazhar, M U; Bruland, A; Andersen, B S; Langlo, J A and Torp, O (2020) Labour productivity statistics: A reality check for the Norwegian construction industry. International Journal of Construction Management, 20(1), pp. 39-52. ISSN 1562-3599

Abstract

Construction is one of the largest sectors that drive the global economy, yet it has failed to receive the necessary attention from the policymakers and investors. The existing construction statistics report the declining state of labour productivity. However, existing statistics often fail to reflect the true scope and economic impact of construction. They mainly account for on-site construction activities, but overlook the manufacturing of construction products and services in construction labour productivity statistics. The aim of this research is to investigate macro-economic labour productivity and identify the methodological problems inhibiting the effective measurement of construction labour productivity. The paper opted for academic literature review and a case study strategy for data collection. The findings reveal that many productive construction activities related to construction products and services are excluded from the construction labour productivity statistics. The results suggest that Norwegian construction labour productivity is not declining and is actually a productive industry in terms of value added per working hour. Although special reference has been made to the Norwegian construction industry, the same approach holds validity at the international arena of construction statistics. The study offers insights and lessons to construction industries of other countries facing similar productivity related issues.

Item Type: Article
Uncontrolled Keywords: construction economics; construction statistics; labour productivity; productivity measurement
Index terms: construction industry, statistics, labour productivity, construction labour, construction statistics, validity, construction activity, productivity, case study, investor, construction product, economic impact, construction economics, literature review, strategy
Subjects: mathematical modelling, evaluation and assessment methods, data collection methods, economic analysis, data analysis and analytics, construction operations, management, sociology, quantitative and statistical methods, financial analysis, industry analysis
Topics: Site Management, Research Practice, Business Strategy, Cost Management, Stakeholder Management
Descriptive scope: 5 PCTEA

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here