Kiwis may be putting in more work hours than other OECD countries, but they aren't producing as much, new data has found .
The New Zealand Productivity Commission has revealed Kiwis are working about two hours more per week than people in other OECD countries , but are producing $17 less.
Economist and commission chairman Ganesh Nana said that means Kiwis are working harder, rather than smarter, making improving living standards that much more difficult.
"Poor productivity results in higher prices for everyday items which can impose a larger burden on those with low incomes," he said.
"When productivity growth is lower, wage growth tends to be lower too, meaning some families struggle to make ends meet. The result is they work longer hours and have less time to spend with family and in the community.
"Even though New Zealanders are producing seven times more than one hundred and fifty years ago, this is significantly less than other countries."
Nana pointed out at the end of the 19th century, New Zealand had been one of the most productive economies in the world.
Getting people to work more hours and putting more people into work was the main way the economy had grown, but it had not lifted the country's productivity, Nana said.
To change this, the New Zealand Productivity Commission said innovation is the key.
New technology needs to be created and new and better ways of working, the commission suggested.
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