Key indicators of labour productivity show recovery after the Covid-19 (Eurostat)
Data published by Eurostat (March 2022) show how the financial crisis in 2009 and the COVID-19 pandemic in 2020 interrupted the previous overall growth trends of labour productivity.
Labour productivy per hour
Both events had significant effects on the EU economy in terms of GDP and labour input indicators. In 2020, labour productivity per hour worked continued to grow slightly (+0.6% on the previous year), while labour productivity per person dropped sharply (-4.6% on the previous year).
It was because the decline in hours worked was greater than the decline in GDP whereas employment in persons declined less markedly due to government support schemes put in place in most countries (see respective indicators per capita in the graph).
In contrast, the financial crisis of 2009 had a similar impact on both labour productivity indicators as labour productivity per person and per hour worked declined by 2.6% and 1.2%, respectively.
In 2021, labour productivity per person nearly recovered to its pre-pandemic level, growing by 4.1% (on the previous year), while labour productivity per hour worked continued to grow slightly by 0.2%, (on the previous year).