Productivity trends using key national accounts indicators

Data extracted on 27 March 2025

Planned article update: March 2026

Highlights

Labour productivity per hour worked in the EU rose by 0.4% in 2024, following a decline of 0.6% in 2023.

Hours worked per employed person decreased by 0.1% in 2024, after a 0.2% drop in 2023, continuing a downward trend.

Evolution of key input indicators of labour productivity and real GDP per capita in the EU

This article uses selected indicators to analyse productivity trends since 1999 for the European Union (EU) its EU countries, and member countries of the European Free Trade Area (EFTA) and provides insights into main trends and driving factors. It starts with an analysis of key labour productivity indicators at total-economy level and then deepens the analysis at country and industry level.

The second part of the article is dedicated to capital productivity indicators. The article closes with a look at labour productivity at regional level.

Evolution of key labour productivity indicators at total economy level in the EU

In 2024, labour productivity per hour worked in the EU increased by 0.4%, while GDP per capita rose by 0.7%, following declines in 2023 of 0.6% and 0.1%, respectively (Table 1). Overall, all indicators showed growth in 2024 (Figure 1 and Table 1), except for hours worked per employed person, which decreased by 0.1% in 2024 and 0.2% in 2023.

Looking at the evolution of labour productivity per hour worked, per person and real GDP per capita for the European Union (EU) since 1999, it is apparent that these indicators were significantly impacted by the financial crisis in 2009 and the COVID-19 pandemic in 2020 but overall trends remained intact. Thanks to government support schemes (short-time work and similar measures) implemented in most countries in 2020, the decline in employment in persons was less pronounced than the reduction of hours worked, so that labour productivity per hour worked continued to increase during the pandemic.

Other key national accounts indicators showed a strong recovery from their drop in 2020, beginning with a significant rebound in 2021, which continued into 2022. Notable growth was observed in real GDP per capita (+6.4% in 2021 and +2.8% in 2022), labour productivity per person (+4.7% in 2021 and +1.2% in 2022), and hours worked per person (+4.1% in 2021 and +0.8% in 2022). Although this positive trend experienced a slight disruption in 2023, by the end of 2024, most indicators are still above the pre-pandemic levels.

Figure 1: Evolution of key input indicators of labour productivity and real GDP per capita, in the EU
Source: Eurostat (nama_10_lp_ulc)

Table 1: Evolution of key input indicators of labour productivity and real GDP per capita (EU, index 2020 = 100, 1999-2024)
Source: Eurostat (nama_10_lp_ulc) and (nama_10_pc)

The exception is for hours worked per employed person, which continued a long-term downward trend for the EU (figure 2). In 2024, hours worked per employed person decreased by 0.1% (after -0.2% in 2023) and their level is below the pre-pandemic level.

Total employment per capita (figure 2) over the past 25 years has increased from 43.2% in 1999 to 48.5% in 2024. This can be related to increased labour market participation of women and older individuals, especially in periods of overall good economic conditions. Following a COVID-19 related dip, total employment per capita has recorded a significant growth in the past 3 years and increased still by 0.5% in 2024.

Figure 2: Hours worked per employed person and total employment (employed persons) per capita, in the EU
Source: Eurostat (nama_10_lp_ulc)

Breaking down overall productivity growth by periods allows a more detailed analysis of underlying trends. From 1999 to 2008, many EU countries experienced accelerated GDP growth, driven by the introduction of the euro in 1999 and the enlargement of the EU with the accession of 12 Eastern and Central European countries in 2004 and 2007. However, the global financial and economic crisis led to significant GDP contractions and employment declines in 2009. The gradual economic recovery from 2010 to 2019 was disrupted by the COVID-19 pandemic in 2020, which impacted EU economies more severely than the 2009 financial crisis.

The ongoing recovery period from 2021 to 2024 shows a small positive annual average growth rate for productivity in hours worked and persons as well as hours worked per capita while the increase in employment per capita was higher than before the crisis (Figure 3). It is however important to note when comparing average productivity growth rates, that the pre-2020 period is based on longer-term averages, while the most recent 4-year period reflects a shorter time frame.

Figure 3: Key labour productivity indicators, EU
Source: Eurostat (nama_10_lp_ulc)

Labour productivity trends at country level

In 2024 (see Figure 4 and Table 2), EU labour productivity per hour worked grew by 0.4%. Highest increases were observed for Poland (+4.8%), Bulgaria (+3.9%) and Denmark (+2.9%). In contrast, several countries recorded negative growth, including Italy (-1.4%), Croatia (-1.2%), Romania (-1.1%) and Ireland (-0.9%). In 2023, the decline in productivity was even more accentuated for several countries (Table 2).

Figure 4: Real labour productivity per hour worked in 2024 by country
Source: Eurostat (nama_10_lp_ulc)

The average number of hours worked per employed person in 2024 experienced a modest decline of 0.1% (Figure 5) at the EU level, but changes at country level varied significantly. Lithuania, Slovenia, and Finland saw the highest increases in working hours, with growth rates of 1.2%, 0.9%, and 0.8%, respectively. On the other hand, Bulgaria, Malta, and Poland faced considerable reductions, with decreases of 2.1%, 1.6%, and 1.2%, respectively.

Figure 5: Hours worked per employed person by country
Source: Eurostat (nama_10_lp_ulc)

Table 2: Real labour productivity per hour worked by countries
Source: Eurostat (nama_10_lp_ulc)

Labour productivity trends at industry level

Labour productivity indicators at total economy level have been complemented with breakdowns by economic activity to make it possible to analyse trends in specific industries (limited to industries where the vast proportion of activities are in the market sectors). Focusing on the year 2024, labour productivity per hour worked by industry, calculated on the basis of real gross value added, showed different changes across industries (Table 3). The largest increases were recorded for ’Agriculture’ (+2.9%) and ’Information and communication’ (+1.4%) and ‘Professional, scientific and technical activities’ (+0.9%). While the smallest increase ‘Construction’ and Manufacturing as well (-2.0% and -0.8% respectively).

Detailed data on labour productivity per hour worked for the years 2023 and 2024 by country and by industry are presented in Table 3.

Table 3: Real labour productivity per hour worked by countries and by industry
Source: Eurostat (nama_10_lp_ulc)

Figure 6 shows the trends of labour productivity per hour worked in the EU since 1999 in different industires. When analysing the evolution of labour productivity at the industry level, all sectors have surpassed their pre-COVID-19 pandemic levels, with the exception of the Construction industry, which remains below 2019 levels. Notably, the industries that have experienced the strongest average growth in labour productivity per hour worked over the entire period are Agriculture (+3.2%), ‘Information and Communication’, (+2.5%) and Manufacturing (+2.3%). In particular, examining the average growth rates for the 2 sub-periods, before and after 2011, labour productivity gap between industries began to narrow after 2011. Table 4 shows that labor productivity growth slowed, especially in those sectors that had experienced the most significant growth in the years prior to 2011, like ‘agriculture’, Manufacturing’ and ‘Information and comunication’.

Figure 6: Real labour productivity per hour worked in 2024 by country
Source: Eurostat (nama_10_lp_ulc)

Table 4: Real labour productivity per hour worked by country and industry(¹) (1999-2024)
Source: Eurostat (nama_10_lp_a21)

Capital related productivity indicators

Together with labour, capital is the other key input factor for the production process. While the latest available year for most countries is 2022, and EU aggregates for the new indicators (based on real net capital stock) are not yet available, some interesting aspects can be pointed out for different countries for the year 2022.

The following graph (Figure 7) presents a cross-country comparison of one measure for capital productivity, i.e. real gross value added per unit of net fixed assets. Analogous to the labour productivity indicator, this indicator shows the relation between the units of output (real gross value added) produced and one unit of capital stock (input). A large majority of EU countries recorded positive growth, in other words, on average, output grew faster than capital input (Table 5). In 2022 the highest growth was registered by Ireland (+11.8%) and Croatia (+8.5%). On the other hand, gross value added per unit of net fixed assets declined for a few countries, notably Malta (-4.6%) and Slovakia (-3%).

Figure 7: Gross value added per unit of net fixed assets by country
Source: Eurostat (nama_10_cp_a21)

Finally, by looking at the capital-to-labour ratio it is possible to analyse the intensity of the use of fixed assets in relation to the use of labour input (Figure 8). Differences across countries are also related to different types of industry structure and technologies, which both imply different degrees of capital intensity compared with labour intensity.

In 2022, the growth rate of this ratio was negative for most countries, in other words, net fixed asset dropped, reducing the intensity in the use of capital in the production process. The country with the highest increase in capital input compared with labour input (in terms of persons employed) was Malta (+5.9%), followed by Romania (+2.6%), Slovakia (+1.5%) and Poland (+1.4%). In other words, in these countries the labour input grew more slowly than the capital input. On the other hand, Ireland (-8.1%) experienced the most negative average growth rates of the capital-to-labour ratio, due to a significant decrease in the net fixed assets.

Figure 8: Net fixed assets per employed person, net fixed assets and persons employed
Source: Eurostat (nama_10_cp_a21)

Table 5:Gross value added per unit of net fixed assets, Net fixed assets per employed person , Gross value added , Net fixed assets and Employed persons
Source: Eurostat (nama_10_cp_a21), (nama_10_a10), (nama_10_nfa_st) and (nama_10_pe)

Labour productivity per hour worked at regional level

Labour productivity can be analysed for regional accounts data available for the European Union’s (EU) NUTS level 2 regions. Several Member States (Cyprus, Estonia, Luxembourg, Latvia and Malta) only have a single level 2 region, in these cases the regional labour productivity indicator corresponds to the one at national level.

Regional labour productivity per hour worked is computed as an index (2015=100) based on gross domestic product in chain linked volumes. In order to smooth out the volatility typically observed in regional growth year on year, the annual average growth rate was calculated over the period 2003-2022. The following map illustrates regional growth in labour productivity for the EU regions.

Map 1: Labour productivity, annual percentage growth rate by NUTS 2 regions, EU, 2003-2022

Source: Eurostat (nama_10r_2rlp)

At regional level, productivity growth was higher for central and eastern European countries, which benefited from a catching-up and convergence process over the period, with a generally higher annual average growth rate for all regions of Ireland, Lithuania, Slovakia and some regions of Bulgaria, Hungary, Poland and Romania. All regions in Slovenia and several regions in Austria, Czechia, Croatia, Denmark and Germany also had annual growth rates above the EU average (the EU average was 1.0%). The growth rate for the Romanian region of the București-Ilfov (7.9%) was the highest among the European regions while productivity growth was rather low for all Greek, some Italian and two Bulgarian regions. In 2024, EU countries coordinated the benchmark revision in regional accounts. While many EU countries achieved full implementation of the benchmark revision, some countries had a partial implementation. Due to partial implementation the indicator is not available in Portuguese regions while due to confidentiality the indicator is not calculated for the Dutch regions.

Source data for tables and graphs

Data sources

The available set of productivity indicators is based on national accounts data which must be sent by EU Member States and EFTA countries according to the deadlines specified in the European system of national and regional accounts (ESA), which also provides the methodological framework for national accounts in the EU. The current version, ESA 10, was adopted in May 2013 and has been implemented since September 2014. It is fully consistent with worldwide guidelines for national accounts, the 2008 SNA.

Please note that national accounts data are regularly revised, and this also impacts derived productivity indicators. In particular, significant revisions can be expected for benchmark revisions. Most EU Member States carried out the last benchmark revision in 2024. For further details, please consult the Eurostat website and in particular this document on data revision.

Regular updates vary depending on the breakdown and national release calendars. Deadlines for delivery of data range mainly from t+2 months for main aggregates to t+24 months for capital assets and regional data. Additional information on the dissemination of ESA 2010 data is available under National accounts based productivity indicators at total economy, industry and regional level (nama_10_prod) and for regional accounts Regional economic account (reg_eco10) - Section 9. Frequency of dissemination. Indicator definitions

Real labour productivity per person employed for the total economy is calculated by dividing GDP in chain-linked volumes by the number of employed persons. At industry and regional levels, GDP in the numerator is replaced by GVA.

Real labour productivity per hour worked for the total economy is calculated by dividing GDP in chain-linked volumes by hours worked. At industry and regional level, GDP in the numerator is replaced by GVA. The recommended measure for labour input is the total number of hours worked, as it takes into account changes in part-time work, the effect of variations in overtime, the effect of absence from work, or the effect of shifts in normal hours.

Total employment per capita is calculated by dividing total employment (in terms of persons, in domestic concept) by the total population.

Hours worked per person employed is the result of dividing total hours worked by persons employed (in domestic concept).

Gross value added per unit of net fixed assets is obtained by dividing gross value added (in chain-linked volumes) by net capital stock (in chain-linked volumes).

Net fixed assets to gross value added is the inverse of the previous indicator. It is obtained by dividing net capital stock (in chain-linked volumes) by gross value added (in chain-linked volumes).

Net fixed assets per employed person is obtained by dividing net capital stock (in chain-linked volumes) by persons employed; net fixed assets per hour worked is obtained by dividing net capital stock (in chain-linked volumes) by hours worked.

Context

Labour and capital are key input factors affecting productivity growth. They are widely used for economic analysis and forecasting, policy design and policy making. The aim of this data collection based on national accounts data is to provide indicators that allow deeper analysis of productivity trends.

Explore further

Database

Annual national accounts (nama10), see

Labour and capital productivity (nama_10_prod)

Selected datasets

Annual national accounts (t_nama)

Methodology

The documentation on availability and comparability aspects related to labour-productivity indicators and capital-productivity indicators is available on the Eurostat website.

National accounts based on productivity indicators (ESA metadata file — nama_10_prod)

Eurostat methodology on productivity indicators

Experimental Statistics on Multifactor Productivity

European system of account — ESA 2010

NACE Rev.2 publication

Annual national accounts (ESMS metadata file — nama10_esms)
Gross domestic product and main components (ESMS metadata file — nama_10_gdp_esms)

Other methodological information

National accounts, see Methodology:
- Main aggregates
- Employment

External links