This release was compiled during the COVID-19 crisis. The results contained in this release reflect some of the economic impacts of the COVID-19 situation. The full series of information notes on the implications of COVID-19 on the National Accounts can be found on our Information Notes page.
The following chapter provides a KLEMS (Capital, Labour, Energy, Materials and Services) analysis of Gross Output growth in the economy. While the previous chapters have looked at the economy from a Gross Value Added (GVA) approach, this chapter additionally considers the intermediate inputs consumed in the production process. The KLEMS methodology decomposes intermediate consumption into three categories of Energy, Materials and Services to provide greater insight into the sources of growth in a given sector. The data used to categorise the intermediate consumption is taken from the Supply and Use Tables, which give a detailed breakdown of intermediate consumption of products and services by economic sector.
It should be noted that since the KLEMS approach uses Gross Output1 as the measure of output for a sector, the Multifactor Productivity (MFP) growth rate associated with that sector is generally minimised when compared to the MFP growth rate2 estimated when using GVA as the measure of output. This is due to the additional explanatory variables of Energy, Materials and Services.
1 Gross Output in this chapter excludes inter-industry deliveries of intermediate inputs to avoid overstating the output of each sector.
2 To avoid confusion with the MFP results seen elsewhere in the publication, the term KLEMS MFP will be used instead of MFP.
| Table 11.1 Gross Output Decomposition by Sector: 2021 (Percentage Change)1 | |||||||
| Sector | Gross Output | Capital Input | Labour Input | Energy Input | Materials Input | Services Input | KLEMS MFP |
| Agriculture, Forestry & Fishing (A) | -10.1 | 0.5 | 0.7 | -3.3 | -5.7 | -1.7 | -0.6 |
| Mining & Quarrying (B) | 19.0 | -2.8 | -4.1 | -5.1 | 3.0 | 5.3 | 22.7 |
| Manufacturing: Domestic | 15.3 | 1.5 | 0.4 | -1.4 | 5.2 | 4.6 | 5.0 |
| Manufacturing: Foreign | 16.7 | -1.9 | 0.4 | -0.4 | 0.4 | 2.7 | 15.4 |
| Electricity, Gas & Steam (D) | -31.5 | 0.1 | 0.8 | -9.6 | -6.7 | -5.1 | -11.1 |
| Water Supply, Sewerage & Waste Management (E) | -8.1 | 0.2 | -1.6 | -6.4 | -0.5 | -3.0 | 3.3 |
| Construction (F) | -7.2 | 1.0 | 1.8 | -2.3 | -2.3 | -1.5 | -3.9 |
| Wholesale & Retail (G) | 4.2 | -1.2 | 0.2 | -1.6 | 0.5 | 0.8 | 5.5 |
| Transportation & Storage (H) | -44.9 | 0.2 | 0.8 | -11.8 | -6.2 | -23.0 | -5.0 |
| Accommodation & Food Service Activities (I) | -27.1 | 0.1 | 7.4 | -3.0 | -6.4 | -4.8 | -20.4 |
| Information & Communication (J) | 16.3 | -1.7 | 0.7 | -0.2 | 0.7 | 9.4 | 7.4 |
| Financial & Insurance Activities (K) | 8.5 | 0.8 | 0.5 | -0.3 | 0.0 | -1.3 | 8.8 |
| Real Estate Activities (L) | 1.5 | 1.1 | 0.5 | -0.6 | -0.5 | -3.0 | 4.0 |
| Professional, Scientific & Technical Activities (M) | 7.7 | -1.4 | 4.0 | -0.7 | 0.4 | 2.2 | 3.1 |
| Administrative & Support Service Activities (N) | -6.4 | -1.9 | 0.5 | -0.3 | -0.5 | -1.2 | -3.1 |
| Public Administration & Defence (O) | 8.4 | 0.2 | 2.8 | -0.9 | 1.3 | 2.7 | 2.4 |
| Education (P) | -2.3 | -0.3 | 11.0 | -0.4 | 0.0 | 0.0 | -12.6 |
| Human Health & Social Work (Q) | 2.0 | 0.2 | 3.4 | -0.5 | 0.4 | 0.2 | -1.6 |
| Arts, Entertainment & Recreation (R) | 4.6 | 0.0 | 4.6 | -0.8 | -0.1 | -0.2 | 1.1 |
| Other Service Activities (S) | -1.0 | 0.0 | 3.5 | -2.1 | -0.2 | -0.6 | -1.6 |
| 1Due to rounding, the various inputs may not sum exactly to the numbers referenced above. | |||||||
Table 11.1 shows a KLEMS decomposition of Gross Output growth for 2021 at the sector level. There were very large swings in Gross Output for many sectors across the economy, mostly driven by the contributions of intermediate inputs rather than capital and labour. In general, these contributions were mostly negative, indicating that there was a reduction in the use of intermediate inputs throughout the year. Looking at Gross Output, there was positive growth for the Foreign-dominated sectors of ICT (16.3%) and Manufacturing - Foreign (16.7%). At the other extreme, there were extreme falls in Gross Output for the service-based sectors of Transportation & Storage (-44.9%) and Accommodation & Food (-27.1%) due to the COVID-19 pandemic. These reductions in output came after even more significant falls in 2020. There were also significant changes to KLEMS MFP for most sectors, with particularly large results for sectors that saw large changes to Gross Output.
| Description | Capital | Labour | Energy | Materials | Services | KLEMS MFP | Gross Output |
|---|---|---|---|---|---|---|---|
| Information & Communication (J) | 5.5 | 0.4 | 0.1 | 0.4 | 6.1 | -1.1 | 11.3 |
| Manufacturing - Foreign | 9.7 | 0.3 | 0.1 | 0.6 | 3.4 | -2.8 | 11.2 |
| Water Supply, Sewerage & Waste Management (E) | 0.6 | -0.2 | 0.6 | 0.6 | 2.7 | 1.4 | 5.8 |
| Administrative & Support Service Activities (N) | 5.1 | 0.4 | 0 | 0.6 | 0 | -1.1 | 5 |
| Professional, Scientific & Technical Activities (M) | 4.3 | 1.2 | 0.1 | 0 | 0.1 | -0.9 | 4.7 |
| Manufacturing - Domestic | 1.2 | -0.1 | -0.3 | 1.5 | 1.2 | 0.6 | 4.2 |
| Mining & Quarrying (B) | -2.8 | -1 | 0.3 | 1 | 1.5 | 4.8 | 3.8 |
| Arts, Entertainment & Recreation (R) | 0.7 | -0.4 | 0.2 | 0.4 | 1.5 | 1.2 | 3.6 |
| Public Administration & Defence (O) | 0.1 | 1.4 | 0 | 0.7 | 0.9 | 0.4 | 3.5 |
| Wholesale & Retail (G) | 1 | 0.1 | 0.1 | 1.5 | -0.1 | 0.5 | 3.1 |
| Human Health & Social Work (Q) | 0.2 | 1.3 | 0.1 | 1.6 | 0.2 | -0.4 | 3 |
| Agriculture, Forestry & Fishing (A) | 0.2 | -0.3 | 0.1 | 0.5 | 0.3 | 2.1 | 3 |
| Electricity, Gas & Steam (D) | 0.4 | 0.1 | -0.8 | 2 | 1 | -0.6 | 2 |
| Financial & Insurance Activities (K) | 1.4 | 0.6 | 0 | 0 | 2.3 | -3.7 | 0.7 |
| Other Service Activities (S) | -0.1 | 0.2 | 0.2 | -0.1 | -0.1 | 0.1 | 0.1 |
| Construction (F) | 0.4 | 1 | -0.1 | -1.6 | 0.7 | -0.5 | -0.1 |
| Education (P) | 0 | 3.2 | -0.3 | -0.4 | -0.7 | -2 | -0.3 |
| Transportation & Storage (H) | 0.3 | -0.1 | -0.5 | -0.7 | -2.3 | -1.4 | -4.7 |
| Accommodation & Food Service Activities (I) | 0.2 | -0.6 | -0.1 | -2.2 | -2.1 | -2.4 | -7.1 |
Get the data: PxStat PIA16
Figure 11.1 illustrates a KLEMS decomposition of Gross Output growth for sectors in the economy over the period 2011-2021. In general, Gross Output increased for most sectors over the period, with only Accommodation & Food (-7.1% per year) and Transportation & Storage (-4.7% per year) experiencing significant falls, almost entirely due to the impact of the COVID-19 pandemic. Growth in Gross Output was highest for ICT and Manufacturing - Foreign, which were both largely driven by the contributions of Services and Capital. For many domestic sectors such as Wholesale & Retail, Manufacturing - Domestic and Accommodation & Food, Materials made a more significant contribution to growth over the period. KLEMS MFP growth was negative for more than half of the sectors shown, with particularly large falls for Financial & Insurance Activities (-3.7% per year), Manufacturing - Foreign (-2.8% per year) and Accommodation & Food (-2.4% per year).
| Description | Labour | Capital | Energy | Materials | Services |
|---|---|---|---|---|---|
| Agriculture, Forestry & Fishing (A) | 33.3 | 12.1 | 7 | 36.6 | 11 |
| Mining & Quarrying (B) | 30.8 | 12 | 16.3 | 15 | 25.9 |
| Manufacturing - Domestic | 15.4 | 22.4 | 3.7 | 31.2 | 27.3 |
| Manufacturing - Foreign | 4.4 | 60.8 | 0.8 | 4.8 | 29.2 |
| Electricity, Gas & Steam (D) | 12.5 | 27.9 | 16.1 | 24.7 | 18.8 |
| Water Supply, Sewerage & Waste Management (E) | 17.8 | 25.1 | 12.2 | 6.5 | 38.3 |
| Construction (F) | 28.7 | 16.8 | 4.5 | 30.4 | 19.6 |
| Wholesale & Retail (G) | 25.2 | 25.9 | 3.1 | 17 | 28.9 |
| Transportation & Storage (H) | 34.2 | 0 | 19.2 | 9.9 | 36.7 |
| Accommodation & Food Service Activities (I) | 50.2 | 8.7 | 5 | 20.6 | 15.6 |
| Information & Communication (J) | 6.6 | 36.3 | 0.6 | 4.2 | 52.3 |
| Financial & Insurance Activities (K) | 32.7 | 26.3 | 0.5 | 1.4 | 39 |
| Professional, Scientific & Technical Activities (M) | 33.9 | 31.9 | 1.6 | 5.4 | 27.2 |
| Administrative & Support Service Activities (N) | 16.5 | 52.3 | 0.4 | 9.1 | 21.6 |
| Public Administration & Defence (O) | 50.1 | 11.8 | 1.8 | 11.6 | 24.6 |
| Education (P) | 78.7 | 11.5 | 0.9 | 3 | 5.8 |
| Human Health & Social Work (Q) | 56.1 | 9.1 | 1.2 | 21.8 | 11.8 |
| Arts, Entertainment & Recreation (R) | 33.3 | 33 | 2.7 | 8 | 23 |
| Other Service Activities (S) | 36 | 4.2 | 3.9 | 11.8 | 44.1 |
Get the data: PxStat PIA16
Gross Output is the sum of Gross Value Added (GVA) and Intermediate Consumption, which can be further decomposed into Labour and Capital (for GVA) and Energy, Materials and Services (for Intermediate Consumption). Figure 11.2 illustrates this decomposition for sectors in the economy in 2021, highlighting the differences in the sources of Gross Output for these sectors.
Labour accounted for the largest share of Gross Output for many domestic sectors such as Education (78.7%), Human Health (56.1%) and Accommodation & Food (50.2%), while Capital was most significant for Manufacturing - Foreign (60.8%), Administrative & Support Services (52.3%) and ICT (36.3%). Services accounted for approximately 20% of Gross Output for most sectors, while Materials were generally more important for domestic sectors such as Agriculture (36.6%), Manufacturing - Domestic (31.2%) and Construction (30.4%). Energy generally accounted for the lowest proportion of Gross Output for most sectors, although it was particularly influential for Transportation & Storage (19.2%), Electricity, Gas & Steam (16.1%) and Mining & Quarrying (16.3%).
| Timeperiod | Labour | Capital | Energy | Materials | Services | KLEMS MFP | Gross Output |
|---|---|---|---|---|---|---|---|
| 2011 | -2.3 | 0 | -1.1 | -8.9 | -8.2 | -0.8 | -21.3 |
| 2012 | -2.4 | 0 | -3 | -24.6 | -8.8 | -1 | -39.7 |
| 2013 | 1.7 | -0.4 | 1.3 | 6.5 | 1.7 | 2.5 | 13.2 |
| 2014 | 3.8 | -0.5 | 0 | 6.4 | 12.2 | -0.2 | 21.7 |
| 2015 | 5 | 0.3 | -0.1 | -0.5 | 4.4 | -2.6 | 6.3 |
| 2016 | 3.4 | 0.6 | 0.3 | 5.8 | 17.3 | -0.4 | 27 |
| 2017 | 2.9 | 1 | 3.7 | 3.9 | 0.1 | 0.1 | 11.6 |
| 2018 | 3.2 | 0.7 | -0.5 | -1.1 | -5.7 | -0.3 | -3.6 |
| 2019 | 0.8 | 1.3 | -0.7 | -2.8 | -4.1 | 0 | -5.4 |
| 2020 | -6.8 | 0.4 | 1.9 | 0.2 | 0.2 | 0.6 | -3.5 |
| 2021 | 1.8 | 1 | -2.3 | -2.3 | -1.5 | -3.9 | -7.2 |
Get the data: PxStat PIA16
Gross Output in the Construction sector fell by 7.2% in 2021, on account of the COVID-19 restrictions placed on this sector in the first quarter of 2021. However, Gross Output in the sector has been falling since 2017. Energy (-2.3%) and Materials (-2.3%) provided the largest negative contributions to growth in the sector in 2021, with small positive contributions from Labour (1.8%) and Capital (1.1%). KLEMS MFP fell by 3.9% in 2021, having seen relatively little change since 2015. In general, Gross Output growth in the Construction sector is explained by changes in the use of Materials and Services.
| Timeperiod | Labour | Capital | Energy | Materials | Services |
|---|---|---|---|---|---|
| 2011 | 21.3 | 0 | 4.8 | 52.7 | 21.1 |
| 2012 | 19.8 | 0 | 5.5 | 57.2 | 17.5 |
| 2013 | 39.7 | 0 | 4 | 43.9 | 12.3 |
| 2014 | 34.9 | 6.7 | 4.4 | 42.3 | 11.6 |
| 2015 | 28.6 | 11.3 | 3.3 | 37.6 | 19.3 |
| 2016 | 28.8 | 11 | 2.7 | 35.6 | 21.8 |
| 2017 | 26.1 | 9.9 | 2.6 | 31.2 | 30.2 |
| 2018 | 25 | 13.9 | 5.4 | 29.7 | 26 |
| 2019 | 28.3 | 15.2 | 4.8 | 30 | 21.6 |
| 2020 | 31.6 | 17.4 | 4.2 | 28.5 | 18.3 |
| 2021 | 28.7 | 16.8 | 4.5 | 30.4 | 19.6 |
Get the data: PxStat PIA16
Materials (30.4%) and Labour (28.7%) accounted for the largest shares in Gross Output for the Construction sector in 2021. Services (19.6%) and Capital (16.8%) are also important in the sector.
The Materials used as intermediate consumption in the sector were predominantly Non-Metallic Mineral Products and Metal Products. The most significant Services consumed were Rental & Leasing, Wholesale Trade and Architecture & Engineering.
| Timeperiod | Labour | Capital | Energy | Materials | Services | KLEMS MFP | Gross Output |
|---|---|---|---|---|---|---|---|
| 2011 | -4.1 | -0.1 | -0.5 | -24.2 | -5.1 | 6.4 | -27.5 |
| 2012 | 1.1 | -0.2 | 1.2 | 5.7 | 4.5 | -1.7 | 10.6 |
| 2013 | 5.3 | 0 | 0.6 | -2.5 | -3.6 | -0.6 | -0.8 |
| 2014 | 3.6 | 0.1 | 0 | 1.3 | -1 | -0.3 | 3.6 |
| 2015 | 1.6 | 0 | -0.1 | 0 | -3 | 1.7 | 0.2 |
| 2016 | 2.5 | -0.1 | 1.4 | 2.4 | 5.2 | 1.3 | 12.6 |
| 2017 | 1.9 | 0.3 | 0.1 | -3.8 | -0.6 | 1 | -1 |
| 2018 | 4.4 | 2.2 | 0.7 | 11.3 | -6.8 | -1.2 | 10.7 |
| 2019 | -0.2 | -0.4 | -0.3 | 1.2 | -0.9 | 2 | 1.4 |
| 2020 | -29.9 | -0.1 | -0.6 | -9.4 | -7.1 | -14.1 | -61.2 |
| 2021 | 7.4 | 0.1 | -3 | -6.4 | -4.8 | -20.4 | -27.1 |
Get the data: PxStat PIA16
The Accommodation & Food sector was one of the sectors most affected by COVID-19 pandemic. Gross Output in the sector fell by 27.1% in 2021, having already fallen by 61.2% in 2020. Unlike in 2020, there was a positive labour contribution (7.4%), however the level of labour remained below 2019 levels. There were negative contributions from each of the intermediate inputs, and practically no capital contribution. KLEMS MFP fell significantly by 20.4%, having also declined by 14.1% in 2020.
| Timeperiod | Labour | Capital | Energy | Materials | Services |
|---|---|---|---|---|---|
| 2011 | 45.6 | 0 | 2.7 | 26.5 | 25.2 |
| 2012 | 57.6 | 2.1 | 3.7 | 8.9 | 27.7 |
| 2013 | 48.8 | 4.9 | 4.6 | 13.2 | 28.6 |
| 2014 | 50.2 | 8 | 5.1 | 11 | 25.6 |
| 2015 | 51.5 | 7.7 | 4.5 | 12 | 24.2 |
| 2016 | 53 | 10.5 | 3.8 | 11.8 | 20.9 |
| 2017 | 52 | 8.1 | 4 | 12.3 | 23.5 |
| 2018 | 52.7 | 12.3 | 4.1 | 8.1 | 22.9 |
| 2019 | 51.4 | 12.4 | 4.6 | 17.3 | 14.4 |
| 2020 | 53.1 | 11.2 | 4.3 | 17.8 | 13.5 |
| 2021 | 50.2 | 8.7 | 5 | 20.6 | 15.6 |
Get the data: PxStat PIA16
Gross Output in the Accommodation & Food sector in 2021 was largely attributable to Labour (50.2%), while Materials (20.6%) and Services (15.6%) were the other most significant components.
The most important Materials used for intermediate consumption were Food Products and Beverages which accounted for most Materials used by the sector. The most common services used were Financial & Insurance and Legal & Accounting.
| Timeperiod | Labour | Capital | Energy | Materials | Services | KLEMS MFP | Gross Output |
|---|---|---|---|---|---|---|---|
| 2011 | 0.1 | -1.9 | -3.7 | -4.7 | -12.7 | 3.3 | -19.6 |
| 2012 | -1.8 | 0.8 | 10 | 2.5 | 12.6 | 0.8 | 24.9 |
| 2013 | 0 | 0.2 | -2.5 | 0.5 | -5.9 | -0.4 | -8 |
| 2014 | 0.6 | -0.3 | 1.4 | -0.5 | 0.8 | 1.4 | 3.4 |
| 2015 | 1.1 | 0.8 | -4 | 1.7 | 0.2 | 0.5 | 0.3 |
| 2016 | 1.4 | 2.8 | 2.8 | 0.5 | 19.9 | -2.2 | 25.4 |
| 2017 | 0.3 | 1.4 | 5.6 | -0.3 | -6.4 | -0.5 | 0 |
| 2018 | 1.6 | -0.2 | -0.8 | -0.7 | 13 | 0.5 | 13.5 |
| 2019 | 1.3 | -0.4 | -0.7 | 3.4 | -9.6 | 0.4 | -5.5 |
| 2020 | -6.1 | -0.5 | -2 | -3.8 | -14.2 | -14.2 | -40.8 |
| 2021 | 0.8 | 0.2 | -11.8 | -6.2 | -23 | -5 | -44.9 |
Get the data: PxStat PIA16
Gross Output in the Transportation & Storage sector fell by 44.9% in 2021 after a sharp decrease of 40.8% in 2020. As was the case in 2020, there were large negative contributions from almost every input, with Services (-23%) and Energy (-11.8%) the most significant factors. Over the previous 10 years, changes in Services have had the largest influence on Gross Output growth. Given the extreme fall in output after 2019, it is clear that the COVID-19 pandemic had a particularly severe impact on this sector.
| Timeperiod | Labour | Capital | Energy | Materials | Services | KLEMS MFP | Gross Output |
|---|---|---|---|---|---|---|---|
| 2011 | -0.4 | -1.3 | -0.2 | -0.1 | -2 | 1.3 | -2.7 |
| 2012 | -0.2 | 1.1 | 0.1 | 2.1 | 1.5 | -2 | 2.7 |
| 2013 | 0.2 | 1.3 | 0.4 | 1 | 3.3 | -5.7 | 0.4 |
| 2014 | 0.5 | 0.6 | -0.1 | -0.5 | 6.5 | 4 | 10.9 |
| 2015 | 0.5 | 87.6 | -0.1 | -0.1 | 18.1 | -48.1 | 57.9 |
| 2016 | 0.3 | 10.4 | 0.2 | 1.2 | 3.1 | -12 | 3.2 |
| 2017 | 0.7 | -2.2 | 0 | -1.3 | 2.1 | 4.2 | 3.4 |
| 2018 | 0.6 | 2 | 0.9 | 2.9 | -5.2 | 4.6 | 5.9 |
| 2019 | 0.1 | 6.7 | -0.2 | -0.2 | 3.8 | -6.1 | 4.1 |
| 2020 | 0.1 | 2.2 | 0.3 | 0.6 | 3.8 | 13.4 | 20.5 |
| 2021 | 0.4 | -1.9 | -0.4 | 0.4 | 2.7 | 15.4 | 16.7 |
Get the data: PxStat PIA16
Gross Output in the Manufacturing - Foreign sector increased by 16.7% in 2021, after growing by 20.5% in 2020. The 2021 result is largely explained by Services (2.7%), Labour (0.4%) and KLEMS MFP (15.4%).
Due to the lower additions of Intellectual Property (IP) to Capital, the main driver of Gross Output growth was a significant increase of 15.4% in KLEMS MFP.
Learn about our data and confidentiality safeguards, and the steps we take to produce statistics that can be trusted by all.