By Lee Hyo-sik
Staff Reporter
Koreans work the longest hours in the industrialized world but their labor productivity lags far behind the United States and other advanced countries, meaning Koreans need to spend fewer hours in office and work more efficiently.
According to the Ministry of Strategy and Finance and the Organization for Economic Cooperation and Development (OECD) Sunday, the nation's labor productivity per hour stood at $20.4 in 2006, substantially lower than the $50.4 for the United States and the OECD average of $38.
The nation ranked the fourth lowest among the 30 member OECD economies. Only Turkey ($14.6), Mexico ($16) and Poland ($19.3) had lower productivity than Korea. Luxemburg topped the list with $72.2, followed by Norway with $71.
Labor productivity was calculated by dividing each country's gross domestic product (GDP) with its total work hours, which are the multiple of the number of employed and average time spent in the office or on factory floors.
``The country's labor efficiency ranks low among developed economies because local employees spent too much time at work. Long hours hurt workers' health and have a negative impact on productivity,'' a ministry official said.
Over the years, the number of work hours here has declined in line with improved labor rights and regulatory changes. But Koreans still spend more hours in the workplace than others around the world.
It is the only OECD member with average annual work hours of over 2,000. In 2007, Korean employees worked an average 2,261 hours.
Nearly half of all Korean workers had workweeks of more than 49 hours, the world's second highest and far higher than the global average, according to a survey by the International Labor Organization last year.
As for labor productivity in the services industry, the picture is even bleaker for the world's 13th largest economy. Korea's productivity in this sector was far lower because of the government's overemphasis on the manufacturing industry and heavy regulations.
Using labor productivity, value created by one employee during a one-year period, in the manufacturing industry with the baseline set at 100 in 1985, the services sector efficiency stood at 378 in 2005, substantially lower than the U.S. figure of 1,014, according to the Statistics Research Institute (RSI).
Japan's services industry labor productivity came to 1,083, while the average of Britain, France and other Western European nations was 928.
The institute suggested that Korea make all-out efforts to strengthen the competitiveness of its services sector in order to join the ranks of advanced countries.
The institute urged the country to produce skilled manpower and help the knowledge-based service providers offer better services at a competitive price, adding that strengthened industry competitiveness will spur growth and create well-paid jobs.