Indicator 8.2.1 Annual growth rate of real GDP per employed person

8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high value added and labour-intensive sectors

8.2.1: Annual growth rate of real GDP per employed person

2023

1.1.1, 8.3.1, 8.5.2, 10.4.1

Kenya National Bureau of Statistics

Kenya National Bureau of Statistics

Senior Manager, National Accounts Statistics

National Accounts Statistics

Designing, collection, compilation, analysis and dissemination of National Accounts Statistics and other related indicators/ information

+254-20-3317583 / +254-20-3317612 / +254-20-3317586

30266-00100, Nairobi- Kenya

directormacro@knbs.or.ke

DEFINITION, CONCEPTS, AND CLASSIFICATIONS

The annual growth rate of real Gross Domestic Product (GDP) per employed person conveys the annual percentage change in real GDP per employed person.

GDP: It is the main measure of output in Kenya, representing the total value of all final goods and services within the System of National Accounts (SNA). According to the SNA, “GDP is the sum of gross value added of all resident producer units plus that part (possibly the total) of taxes on products, less subsidies on products, that is not included in the valuation of output … GDP is also equal to the sum of the final uses of goods and services (all uses except intermediate consumption) measured at purchasers’ prices, less the value of imports of goods and services GDP is also equal to the sum of primary incomes distributed by resident producer units.”

Real GDP: Real GDP refers to GDP calculated at constant prices, that is, the volume level of GDP, excluding the effect of inflation and favouring comparisons of quantities beyond price changes. Constant price estimates of GDP are calculated by expressing values in terms of a base period. In theory, the price and quantity components of a value are identified and the price in the base period is substituted for that in the current period.

Employment: All persons of working age who, during a short reference period (one week), were engaged in any activity to produce goods or provide services for pay or profit.

Percent

Different versions of The System of National Accounts (1968, 1993 and 2008 SNA)

International Standard Industrial Classification (ISIC 4) of all Economic Activities

Kenya Standard of Industrial Classification (KESIC 6)

DATA SOURCE, TYPE AND DATA COLLECTION METHOD

The underlying annual GDP estimates in Kenya Shilling is published in Economic Survey report while the underlying population estimates are obtained from the Directorate of Population and Social Statistics published in KPHC 2019

Surveys and Census

Annual

April every year

Household

Kenya National Bureau of Statistics

According to the Statistics Act of 2006, Kenya National Bureau of Statistics is mandated to collect, compile, analyze, publish and disseminate official statistics for public use

Real GDP per employed person being a measure of labour productivity, this indicator represents a measure of labour productivity growth, thus providing information on the evolution, efficiency and quality of human capital in the production process.

Economic growth in Kenya is ascribed to many factors, including increased employment and more effective work by those who are employed. This indicator casts light on the latter effect, therefore being a key measure of economic performance. Labour productivity (and growth) estimates can support the formulation of labour market policies and monitor their effects. They can also contribute to the understanding of how labour market performance affects living standards.

Output measures are obtained from national accounts and represent, as much as possible, GDP at market prices for the aggregate economy.

Data on employment used in the denominator of this indicator refer, as much as possible, to the average number of persons with one or more paid jobs during the year.

Real GDP per employed person= (GDP at constant prices )/(Total employment)

The numerator and denominator of the equation above should refer to the same reference period, for example, the same calendar year.

If we call the real GDP per employed person “LabProd”, then the annual growth rate of real GDP per employed person is calculated as follows:

Annual growth rate of real GDP per employed person= ((LabProd in year n) –(LabProd in year n-1))/((LabProd in year n-1)) ×100

The official national accounts data in domestic currency are validated to check for errors. The validation procedure involves ensuring that aggregates are equal to the sum of their components and that data series which are provided in multiple tables are represented consistently.

The Bureau employed use of best standards and compilation guides when coming up with the reports

The Kenya National Bureau of Statistics is ISO certified based on 9001:2015 Standard requirements. The processes of compilation, production, publication and dissemination of data, including quality control, are carried out following the methodological framework and standards established by the KNBS, in compliance with the Internationally acceptable standards

The KNBS adheres to Kenya Statistical Quality Assurance Framework (KesQAF) that underlines principles to be assured in managing the statistical production processes and output.

Data consistency and quality checks are conducted through Technical Working Groups (TWGs) before publication and dissemination.

The processes of compilation, production, publication and dissemination of data, including quality control are subjected to a set criteria and standards to ensure conformity.

Data is in Chapter 2 of the Economic Survey Report

None

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