The Japan Productivity Center (Mr. Masayoshi Matsukawa, President) published the Trend of Labor Productivity 2010-2011. This report analyzes the trend of labor productivity and the effect of the Great East Japan Earthquake in fiscal year 2010 and first half of 2011based on various statistical data. The summary of the report is as follows.

1. The nominal labor productivity of Japan in fiscal year 2010 is 7,600,000 Yen. While the effect of the Great East Japan Earthquake was significant, the downward trend that started in fiscal 2007 has finally turned upward. The growth rate of actual labor productivity, too, is 2.4% over previous year, indicating the highest rate since fiscal 200 when 2.6% was recorded.

2. When we look at the labor productivity of different sectors after the Great East Japan Earthquake, almost half sectors like hotels, service and retail, the productivity level is higher compared to before-earthquake period. The sectors with lower productivity are limited to sectors as manufacturing and utilities.

3. Regarding the productivity of 3 prefectures most affected by the earthquake, Iwate prefecture is 0% in June 2011 as compared to the same period last year and the same figure for Fukushima Prefecture was 2.4%. The productivity of Miyagi prefecture, however, sank by 19.2% in notable difference from other prefectures.

4. Regarding the effect of Yen's appreciation, the effective exchange rate appreciated by 5.6% in the last one year. This resulted in 2.5% productivity reduction in manufacturing sector.