Economic engine room: Hamilton's international business quarter.

The bulk of labour productivity growth in Bermuda was due to a thriving real estate and international business sector, according to Government's latest statistics.

The Department of Statistics report entitled 'Labour Productivity Indicators 1996-2006' revealed that while there was a low level of labour utilisation in the real estate and renting services, and electricity, gas and water supply economic activities sectors, gross value added (GVA) per hour worked was high.

Hours worked were high in international business and financial intermediation, but GVA was also high, contributing to a combined total of about 40 percent of GVA in 2006. The higher levels of GVA per hour worked hours worked explained the high levels of labour productivity in these industries.

The more labour-intensive hotel and restaurant trade recorded one of the lowest GVAs per hour worked over the whole period, as labour productivity reached $23.94 per hour in 2006 compared to $118.29 for international business and $545.46 for real estate and renting services.

Elsewhere unit labour costs were highest in public administration - education, health, and social work - and international business sectors, while the reward for labour's contribution to one dollar of output was lowest in real estate and renting services, and electricity, gas and water sectors.

Within the sub-sectors of the hotels and restaurants industry large differences in the rate of productivity growth were observed, with hotels and members clubs and restaurants, cafés, canteens, and catering activities typically the biggest contributors to the industry's labour productivity growth at more than 80 percent annually. In most years, hotels and members' clubs alone contributed more than half of the industry's labour productivity growth.

The variation in labour productivity across international business activities was also considerable. The yearly labour productivity growth and levels were a result of developments in insurance risk-taking activities, while the business activity sub-sector led the way in terms of both the value of output per hour worked and per filled job.

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