This annual publication by the CSO aims to help users understand productivity in the globally-integrated Irish economy. The publication goes beyond basic labour productivity analysis to examine the impact of all inputs (labour, capital, multi-factor productivity) on Irish productivity.
1. Labour productivity grew at an average annual rate of 4.5 percent over this sixteen year period. However, when the period of 2015- 2016 is excluded labour productivity grew by 3.4 percent.
2. In the year 2016, labour productivity grew by 2 percent.
3. Multi-factor productivity for the entire period increased marginally by 0.1 percent. However, when the period of 2015-2016 is excluded, the result is 0.8 percent which compares favourably with other EU countries.
4. The industry sector showed the fastest growth in average annual labour productivity growth over the period 2000 to 2016.
5. Ireland’s capital stock per employee has increased from €150,000 per employee to €378,000 per employee between 2000 and 2016, an increase of 152 percent.
1. In the Domestic and Other sector average annual labour productivity grew at around 2.5 percent for the period to 2014 and also for the entire period to 2016. However, for the Foreign sector the average annual growth rate was 7 percent to 2014 and almost 11 percent for the entire period.
2. Capital stock per worker for the Foreign sector increased by an average annual growth rate of 6.9 percent. When the period is extended to 2016 the growth rate increases substantially to almost 32 percent. For the Domestic and Other sector, the growth in capital stock per worker is around 3.5 percent for both the periods to 2014 and for the entire period to 2016.
3. For multi-factor productivity in the Domestic and Other sectors, the average annual growth is 0.6 percent for the period to 2016 and 0.3 percent for the period to 2014. Foreign sector MFP shows major changes between the two periods with an average annual result of -1.8 percent to 2016 and +1.7 percent for the period to 2014. This is explained by the substantial negative MFP result for 2015.
1. The Domestic and Other sector experienced the largest increase in labour productivity of 2.5 percent among the original 15 EU member states that joined the EU prior to 2004. The Foreign sector in the Irish economy had average annual labour productivity growth of 10.9 percent.
2. Despite having had one of the highest levels of growth in nominal ULC from 2000 to 2008, Ireland is the only country in the EU to have had a cumulative fall in nominal unit labour cost over the entire period 2000 to 2016.
3. The EU average annual growth in capital stocks per worker from 2000 to 2016 was 0.6 percent. For the Irish Domestic and Other sector, the equivalent growth rate was 3.3 percent and for the Foreign sector was almost 32 percent. The rate of increase in capital stocks in Ireland for both the Foreign sector and the Domestic and Other sector was higher than for any country in the EU for which data are available.
As this is the first publication on productivity the results are considered experimental. A case could be made for alternative presentations in these results such as the exclusion of the non-market sector or the exclusion of dwellings from the asset base. There could also be additional analysis by quality of labour or a more detailed analysis by economic sector or by asset type. The results in the CSO Statbank tables will enable many of these alternative presentations. More generally we look forward to a meaningful engagement with our stakeholders once these results have been fully considered in order to set priorities for future productivity analysis.
