Labour productivity growth slowed in the year to March, with the mining sector suffering a fall of almost six per cent.
As economic growth eased and the resources sector showed signs of peaking, overall labour productivity for the 12 months to March was 1.9 per cent, Price Waterhouse Coopers' labour productivity report shows.
The result was affected by a fall in productivity for the quarter, bringing the total growth rate below the average rate of three per cent achieved between 1997 and 2003.
"Growth in annual productivity was underpinned by strong performances in the financial and insurance services and retail sectors," the report said.
Lower interest rates had assisted both sectors as financial markets stabilised.
Annual productivity in the construction sector grew by almost four per cent.
However, the gains were partially offset by negative labour productivity growth in the mining sector and the information, media and telecommunications sector.
"A deterioration of labour productivity in the mining sector continued as productivity in the sector fell by 5.7 per cent," the report said.
"However mining productivity improved for the third consecutive quarter, suggesting the sector may be recovering."
The resources hotspot of Western Australia was the only Australian state where labour productivity went backwards over the year, declining just over one per cent.
Manufacturing and the accommodation and food services sector also recorded minor declines in productivity in the year to March.