This release was compiled during the COVID-19 crisis. The results contained in this release reflect some of the economic impacts of the COVID-19 situation.The full series of information notes on the implications of COVID-19 on the National Accounts can be found on our Information notices .
Productivity in Ireland 2021 presents the latest analysis by CSO with a suite of productivity indicators for the Irish Economy covering the period to 2021. The impact of COVID-19 on the Irish economy continued through 2021, although most sectors experienced an improvement in productivity compared to 2020. Nevertheless, the significant gap between the Foreign and Domestic sectors continued to widen.
In this edition there are a number of new developments including an analysis at sector level of labour productivity by both foreign and domestic ownership rather than the foreign dominated sectoral approach generally followed in National Accounts publications. A section on greenhouse gas emissions has also been included to allow readers to juxtapose this information with the standard productivity results to give a more rounded and holistic view on production in the Irish economy. Along with the standard Labour and Capital based analysis of productivity, the more comprehensive KLEMS and the experimental QALI indicators are also presented. In addition, a more detailed set of international comparisons have also been included on a sector-by sector basis showing how Ireland’s productivity performance compares with our partners in the European Union for several key indicators.
The structural distinction between foreign ownership and domestic ownership has been further developed in this publication. Readers are now presented with indicators on labour productivity with results for both Foreign owned and Domestic owned companies for a selection of economic sectors. This detailed approach is closer to a micro based analysis and required some different approaches to deflation and estimation. In general, foreign-owned companies are more productive than domestic companies within the same sector, although there is significant variation across sectors.
The chapter on Greenhouse Gas Emissions compares emissions per employee to labour productivity. This analysis draws on the Environmental Accounts Air Emissions 2020 produced by our colleagues in CSO Environment and Climate Division. This emissions data is presented by sector on a per employee basis alongside the productivity results to show the linkages between emissions and production.
In addition, there is an analysis presenting the potential emissions from Data Centres on account of their large consumption of electricity. An attempt to estimate the emissions associated with the use of contract manufacturing abroad is also included. However, no adjustment was made to GVA as the associated output is already included in the national accounts. In general, these estimates are best viewed as exploratory or interim.
Looking at the Publication chapter by chapter; Labour Productivity looks at labour productivity in the Irish economy and provides EU comparisons at the sector level.
Sources of labour productivity growth looks at the contributions of sectors to labour productivity growth as well as the contributions of Capital Deepening and Multifactor productivity.
Emissions and labour productivity looks at the linkages between emissions and production by comparing Greenhouse Gas Emissions per Employee and GVA per Employee.
Labour Productivity by Foreign/Domestic Ownership compares labour productivity between foreign and domestic owned companies within the same sectors.
Labour Share presents an analysis of the Labour Share across the economy. The labour share is defined as the proportion of GVA growth attributed to labour with the remainder being attributed to capital.
Unit Labour Costs (ULC) looks at the cost of labour relative to labour productivity. This section also includes information on COVID-19 employment subsidies.
Capital looks at capital assets per employee as well as changes in capital services in the Irish economy.
Factor Inputs and Multifactor Productivity looks at the contribution of labour and capital to GVA growth as well as changes in Multifactor productivity across time.
KLEMS looks at the contribution of intermediate inputs, in addition to labour and capital to Gross Output growth to provide a more detailed view of productivity.
QALI looks at changes in the quality of the labour force over time and its effect on productivity. These QALI estimates are classified as experimental.
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