service productivity

Doug Henwood dhenwood at panix.com
Mon Jul 10 12:40:47 PDT 2000


Just spoke with the guy who's responsible for those service sector productivity figures. Almost all the big numbers come from small sectors, and almost all the gains are attributable to output increases, and not some heroic feats of productivity. In other words, I asked the guy, "You mean one salesperson can sell 2 TVs about as easily as 1?," he said yes, that was it. Or one photographer can do 20 portraits instead of 17, with a bit less time for latte breaks.

The size of the industry seems to matter a lot - note that in the big ones, like eating & drinking establishments, grocery stores, and commercial banking, productivity gains were small; the big gains were in tiny industries, where the data collection is a lot noisier.

So I withdraw the spirit of Billy Liar remark.

Doug



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