According to data from the Central Statistics Office (CSO), the labour productivity of Irish workers was identified as the highest in the European Union last year. For every hour worked, they contributed an average of €97.10 to the economy’s value, outperforming the second highest member state, Luxembourg, where the per hour contribution was €92.20. This figure is also more than twice the general EU average of €41.30 an hour.
Productivity is often characterised as the speed at which goods or services are developed within an economy. It plays an integral role in determining income levels and prosperity. Nonetheless, the CSO’s leading figure is significantly skewed by the influence of the foreign sector dominated by multinational corporations.
In the final quarter of the previous year, international companies contributed €381 per hour to labour productivity, a marginal decline of 0.2 per cent from the prior three months. By contrast, the domestic sector workers contributed €53.80 per hour, marking a modest increase of 0.1 per cent quarter-on-quarter. The stark contrast between these sectors signifies the added value certain multinational products command.
Notwithstanding, the CSO’s report emphasised that Ireland’s domestic labour productivity consistently outperformed the EU average and surpassed that of France, Spain and the Czech Republic.
Doireann O’Brien from the CSO, reflecting on the findings, pointed out that while fluctuations in productivity are generally better analysed over extended periods, these results furnish the most recent insight into Irish economy productivity, ensuring that policymakers, economists, and the public at large are well-informed.