This publication is categorised as a Frontier Series Output. Particular care must be taken when interpreting the statistics in this release as it may use new methods which are under development and/or data sources which may be incomplete, for example, new administrative data sources.
Total Economy labour productivity (€107.80 per hour) increased by 1.2% in Q4 2024 compared with Q3 2024.
Labour productivity for the Domestic sector (€59.60 per hour) fell by 1.8% in Q4 2024 compared with Q3 2024, while labour productivity for the Foreign sector (€410.80 per hour) was up by 3.8%.
Total Economy multifactor productivity went up by 1.6% in Q4 2024 compared with Q3 2024.
Quarter-on-quarter multifactor productivity for the Domestic sector was down by 2.3%, while Foreign sector multifactor productivity grew by 7.1%.
Multifactor productivity for the Domestic sector decreased by 2.8% in Q4 2024 compared with Q4 2023, while Foreign sector multifactor productivity rose by 28.9%.
In this release, the term Foreign sector refers to those sectors dominated by Foreign-Owned Multinational Enterprises (MNEs). These are sectors where Foreign-Owned MNE turnover on average exceeds 85% of the sector total. The term Domestic sector is used to refer to all other sectors not classified as Foreign.
It should be noted that the Foreign and Domestic classifications in this release also differ slightly from those used elsewhere in the CSO’s National Accounts. Rental & Leasing Services (NACE 77) is classified as Foreign in this release due to the concentration of foreign-owned capital in the sector.
All growth rates presented in this release are log growth rates for presentational purposes.
More information is available in the Background Notes.
Labour productivity is a key indicator for the Irish economy as it is the main measure of the efficiency of the labour force. Labour productivity is measured as output per hour worked, where output is measured as Gross Value Added (GVA) in constant prices. Therefore, changes in labour productivity for a sector can be explained by changes in GVA and changes in hours worked.
| Timeperiod | Domestic Sector | Foreign Sector | Total Economy |
|---|---|---|---|
| 2019 - Q1 | 57.6 | 328.1 | 88.5 |
| 2019 - Q2 | 58.5 | 356.5 | 93.6 |
| 2019 - Q3 | 59.2 | 344.2 | 94.5 |
| 2019 - Q4 | 59.5 | 352.5 | 95 |
| 2020 - Q1 | 61.5 | 392.2 | 101.7 |
| 2020 - Q2 | 66.7 | 385.9 | 118.2 |
| 2020 - Q3 | 59.1 | 414.6 | 105.8 |
| 2020 - Q4 | 62 | 383.1 | 107.6 |
| 2021 - Q1 | 66 | 421.7 | 120.6 |
| 2021 - Q2 | 61.8 | 432.5 | 114.4 |
| 2021 - Q3 | 59.2 | 453.8 | 112.1 |
| 2021 - Q4 | 61.8 | 400.7 | 111.6 |
| 2022 - Q1 | 59.4 | 417.9 | 111.6 |
| 2022 - Q2 | 59.2 | 448 | 113.1 |
| 2022 - Q3 | 59.7 | 473.1 | 117.1 |
| 2022 - Q4 | 59.6 | 464 | 115.4 |
| 2023 - Q1 | 61.5 | 399.6 | 108.8 |
| 2023 - Q2 | 62.1 | 411.3 | 110.2 |
| 2023 - Q3 | 61.4 | 368.1 | 104.1 |
| 2023 - Q4 | 62.1 | 366.8 | 102.8 |
| 2024 - Q1 | 62.3 | 354.6 | 101.9 |
| 2024 - Q2 | 61.8 | 336.7 | 101.2 |
| 2024 - Q3 | 60.7 | 395.7 | 106.4 |
| 2024 - Q4 | 59.6 | 410.8 | 107.8 |
Labour productivity for the Total Economy (€107.80 per hour1) rose by 1.2% in the fourth quarter of 2024. Labour productivity was up in the Foreign sector (€410.80 per hour, up 3.8%) and declined in the Domestic sector (€59.60 per hour, down 1.8%) compared with Q3 2024. Figure 1.1 shows the evolution of productivity in the Total Economy as well as in the Domestic and Foreign sectors since Q1 2019.
1 All results presented in this release are seasonally adjusted unless otherwise stated.
| Description | Hours Worked (sign reversed) | Gross Value Added | Labour Productivity |
|---|---|---|---|
| Accommodation & Food Service Activities (I) | 10 | 13.4 | 23.3 |
| Administrative & Support Service Activities (N) | -1.2 | 10.9 | 9.7 |
| Manufacturing - Domestic | 1.6 | 5.6 | 7.2 |
| Information & Communication (J) | 0 | 7.1 | 7 |
| Real Estate Activities (L) | 4.2 | 1.5 | 5.8 |
| Agriculture, Forestry & Fishing (A) | 5.7 | -1.7 | 4 |
| Wholesale & Retail (G) | 0.8 | 0.4 | 1.2 |
| Manufacturing - Foreign | -1.1 | 0.9 | -0.2 |
| Public Administration, Education & Health (O-Q) | -1.9 | 0.6 | -1.3 |
| Transportation & Storage (H) | -0.9 | -0.8 | -1.7 |
| Mining & Quarrying (B) | 5.5 | -7.3 | -1.8 |
| Arts, Entertainment & Other Services (R-T) | -2.7 | 0.4 | -2.3 |
| Construction (F) | -3.4 | -4.6 | -8 |
| Financial & Insurance Activities (K) | -2.6 | -6.7 | -9.2 |
| Energy & Water (D-E) | -13.1 | -1.4 | -14.6 |
| Professional, Scientific & Technical Activities (M) | -0.9 | -16.6 | -17.5 |
| Domestic Sector | -0.2 | -1.6 | -1.8 |
| Foreign Sector | -0.6 | 4.3 | 3.8 |
| Total Economy | -0.2 | 1.5 | 1.2 |
We can look at labour productivity individually in each of the subsector activities of the economy. Figure 1.2 shows the changes in labour productivity in the subsectors being analysed in this release. It shows how changes in GVA and hours worked make up these productivity changes. For example, the largest growth in labour productivity in Q4 2024 was in Accommodation & Food Service Activities (+23.3%). This was made up of growth in GVA of 13.4% and a drop in hours worked of 10%. In contrast, a fall in productivity in Professional, Scientific & Technical Activities of 17.5% was made up of a decrease in GVA of 16.6% and an increase in hours worked of 0.9%. Total Economy productivity was driven by a rise in GVA of 1.5% and an increase in hours worked of 0.2%.
| Timeperiod | Labour Productivity | Hours Worked | Gross Value Added |
|---|---|---|---|
| 2019 - Q1 | -0.7 | 1.7 | 1 |
| 2019 - Q2 | 1.6 | -0.6 | 1 |
| 2019 - Q3 | 1.2 | -0.3 | 0.9 |
| 2019 - Q4 | 0.5 | 1.3 | 1.8 |
| 2020 - Q1 | 3.3 | -3.2 | 0.1 |
| 2020 - Q2 | 8.2 | -28.3 | -20.1 |
| 2020 - Q3 | -12.2 | 23.9 | 11.6 |
| 2020 - Q4 | 4.9 | -3.1 | 1.7 |
| 2021 - Q1 | 6.2 | -5.4 | 0.8 |
| 2021 - Q2 | -6.5 | 9.1 | 2.6 |
| 2021 - Q3 | -4.3 | 6 | 1.7 |
| 2021 - Q4 | 4.3 | -0.2 | 4.1 |
| 2022 - Q1 | -3.9 | 2.2 | -1.7 |
| 2022 - Q2 | -0.4 | 2.4 | 2 |
| 2022 - Q3 | 0.9 | -0.8 | 0.1 |
| 2022 - Q4 | -0.2 | 1.3 | 1.1 |
| 2023 - Q1 | 3.1 | 0.9 | 4 |
| 2023 - Q2 | 1.1 | -0.2 | 0.9 |
| 2023 - Q3 | -1.2 | 0.3 | -0.9 |
| 2023 - Q4 | 1.1 | -0.1 | 0.9 |
| 2024 - Q1 | 0.4 | 1.8 | 2.2 |
| 2024 - Q2 | -0.8 | -0.3 | -1 |
| 2024 - Q3 | -1.8 | 2.5 | 0.6 |
| 2024 - Q4 | -1.8 | 0.2 | -1.6 |
Domestic labour productivity declined by 1.8% in Q4 2024, compared with the previous quarter. This was caused by a marginal increase in hours worked (+0.2%) and a decrease in GVA (-1.6%) in the quarter. Figure 1.3 shows labour productivity broken down into both GVA and hours worked in the period since Q1 2019.
Looking at the growth in Domestic GVA in Q4 2024, Domestic Manufacturing (0.5%) and Accommodation & Food Service Activities (0.5%) made the largest positive contributions. Professional, Scientific & Technical Activities (-2.2%) made the most significant negative contribution.
The main contributors to the increase in Domestic Hours worked include Public Administration, Education & Health (0.5%) and Construction (0.3%), while Accommodation & Food Service Activities (0.7%) and Agriculture, Forestry & Fishing (-0.4%) made the most significant negative contributions.
| Description | Composition Effect | Productivity Effect | Contribution |
|---|---|---|---|
| Manufacturing - Domestic | 0.006 | 0.606 | 0.612 |
| Transportation & Storage (H) | 0.174 | -0.063 | 0.11 |
| Public Administration, Education & Health (O-Q) | 0.354 | -0.264 | 0.09 |
| Mining & Quarrying (B) | 0.005 | -0.004 | 0.001 |
| Arts, Entertainment & Other Services (R-T) | 0.036 | -0.055 | -0.019 |
| Accommodation & Food Service Activities (I) | -0.918 | 0.878 | -0.04 |
| ICT and Administrative & Support Services - Domestic | -0.248 | 0.181 | -0.067 |
| Agriculture, Forestry & Fishing (A) | -0.261 | 0.101 | -0.16 |
| Energy & Water (D-E) | 0.146 | -0.324 | -0.179 |
| Real Estate Activities (L) | -0.971 | 0.782 | -0.188 |
| Wholesale & Retail (G) | -0.343 | 0.15 | -0.194 |
| Construction (F) | 0.05 | -0.403 | -0.353 |
| Professional, Scientific & Technical Activities (M) | 1.538 | -2.119 | -0.581 |
| Financial & Insurance Activities (K) | -0.008 | -0.775 | -0.783 |
| Domestic Sector | -0.442 | -1.31 | -1.751 |
The growth/decline in Domestic Labour productivity can be broken down into the contributions of each of its subsectors2, as shown in Figure 1.4. The contribution of each subsector is determined by two factors: labour productivity growth for the individual subsector (Productivity Effect) and changes in the relative size of the subsector compared with the total Domestic sector (Composition Effect). Positive labour productivity growth for a subsector will always lead to a positive Productivity Effect, however the Composition Effect3 depends on how productive the subsector is compared with the overall Domestic sector. For example, if a low productivity subsector grows faster than the rest of the Domestic subsectors, it will account for a larger share and therefore reduce average labour productivity for the total Domestic sector.
The 1.8% quarter-on-quarter decline in Domestic labour productivity can be explained by a Productivity Effect of -1.3% and a Composition Effect of -0.4%. This means that declines in subsector productivity (Productivity Effect) and the composition of the sector (Composition Effect) resulted in negative Domestic labour productivity growth for the quarter. Financial & Insurance Activities (-0.8%) and Professional, Technical & Scientific Activities (-0.6%) made the most significant negative contributions to Domestic labour productivity growth. Domestic Manufacturing (0.6%) made the largest positive contribution.
2 For confidentiality purposes, the contributions of Information & Communications – Domestic and Administrative & Support Services – Domestic have been combined in Figure 1.4.
3 Also called the Reallocation Effect.
While changes in the level of labour in the economy are a crucial factor in explaining changes in efficiency in the economy, it is important to remember that overall productivity is not only dependent on labour. Capital, such as machinery, equipment, factories, and vehicles (tangible capital) and intellectual property (intangible capital) is the other key element of production in any economy.
Changes in the level of capital available to labour (capital deepening) has a considerable influence on output, as more capital investment increases the productive capacity of workers. Capital deepening is measured as the change in capital services per hour worked, where capital services are units of capital in the same way that hours worked are units of labour.
Aside from the level of labour and capital, overall productivity is also influenced by factors such as education, skills, organisational practices, and changes in technology among others, all of which have a significant influence on the quality of labour and capital. Multifactor productivity (MFP) is the measure of overall productivity in the economy, which attempts to capture all these features.
| Timeperiod | Labour Contribution | Capital Contribution | Multifactor Productivity | Gross Value Added |
|---|---|---|---|---|
| 2019 - Q1 | 1 | 0.3 | -0.3 | 1 |
| 2019 - Q2 | -0.3 | 1.1 | 0.3 | 1 |
| 2019 - Q3 | -0.2 | 0 | 1.1 | 0.9 |
| 2019 - Q4 | 0.8 | 0.7 | 0.3 | 1.8 |
| 2020 - Q1 | -1.8 | 0.3 | 1.6 | 0.1 |
| 2020 - Q2 | -15.9 | 0.1 | -4.3 | -20.1 |
| 2020 - Q3 | 13 | 0.5 | -1.9 | 11.6 |
| 2020 - Q4 | -1.7 | 0.5 | 3 | 1.7 |
| 2021 - Q1 | -3 | 0.1 | 3.6 | 0.8 |
| 2021 - Q2 | 4.9 | 0.5 | -2.8 | 2.6 |
| 2021 - Q3 | 3.3 | 0.5 | -2.1 | 1.7 |
| 2021 - Q4 | -0.1 | 0.6 | 3.6 | 4.1 |
| 2022 - Q1 | 1.2 | 0.8 | -3.7 | -1.7 |
| 2022 - Q2 | 1.3 | 0.6 | 0.1 | 2 |
| 2022 - Q3 | -0.4 | 0.6 | -0.1 | 0.1 |
| 2022 - Q4 | 0.7 | 0.6 | -0.1 | 1.1 |
| 2023 - Q1 | 0.5 | 0.8 | 2.7 | 4 |
| 2023 - Q2 | -0.1 | 0.6 | 0.4 | 0.9 |
| 2023 - Q3 | 0.2 | 0.6 | -1.6 | -0.9 |
| 2023 - Q4 | -0.1 | 0.7 | 0.3 | 0.9 |
| 2024 - Q1 | 1 | -1 | 2.2 | 2.2 |
| 2024 - Q2 | -0.1 | 0.4 | -1.3 | -1 |
| 2024 - Q3 | 1.3 | 0.7 | -1.4 | 0.6 |
| 2024 - Q4 | 0.1 | 0.6 | -2.3 | -1.6 |
Figure 1.5 shows the contributions of labour, capital, and MFP growth to GVA quarter-on-quarter growth for the Domestic sector. GVA growth is explained by the contributions of labour and capital, where the contributions capture changes in both of these factors. MFP growth is calculated as the difference between GVA growth and the sum of the labour and capital contributions (i.e. a residual measure).
Domestic GVA fell by 1.6% in the fourth quarter of 2024, explained by a MFP decline of 2.3%, increased labour contribution of 0.1%, and by a capital contribution growth of 0.6%.
| Timeperiod | Capital Deepening | Multifactor Productivity | Labour Productivity |
|---|---|---|---|
| 2019 - Q1 | -0.4 | -0.3 | -0.7 |
| 2019 - Q2 | 1.3 | 0.3 | 1.6 |
| 2019 - Q3 | 0.1 | 1.1 | 1.2 |
| 2019 - Q4 | 0.2 | 0.3 | 0.5 |
| 2020 - Q1 | 1.7 | 1.6 | 3.3 |
| 2020 - Q2 | 12.5 | -4.3 | 8.2 |
| 2020 - Q3 | -10.3 | -1.9 | -12.2 |
| 2020 - Q4 | 1.9 | 3 | 4.9 |
| 2021 - Q1 | 2.6 | 3.6 | 6.2 |
| 2021 - Q2 | -3.7 | -2.8 | -6.5 |
| 2021 - Q3 | -2.2 | -2.1 | -4.3 |
| 2021 - Q4 | 0.7 | 3.6 | 4.3 |
| 2022 - Q1 | -0.2 | -3.7 | -3.9 |
| 2022 - Q2 | -0.5 | 0.1 | -0.4 |
| 2022 - Q3 | 1 | -0.1 | 0.9 |
| 2022 - Q4 | 0 | -0.1 | -0.2 |
| 2023 - Q1 | 0.4 | 2.7 | 3.1 |
| 2023 - Q2 | 0.7 | 0.4 | 1.1 |
| 2023 - Q3 | 0.5 | -1.6 | -1.2 |
| 2023 - Q4 | 0.7 | 0.3 | 1.1 |
| 2024 - Q1 | -1.9 | 2.2 | 0.4 |
| 2024 - Q2 | 0.5 | -1.3 | -0.8 |
| 2024 - Q3 | -0.5 | -1.4 | -1.8 |
| 2024 - Q4 | 0.5 | -2.3 | -1.8 |
Changes in labour productivity can also be explained by capital deepening and MFP growth, as shown in Figure 1.6. The decline in Domestic labour productivity of 1.8% in Q4 2024 compared with the previous quarter was due to negative MFP growth (-2.3%) and increased capital deepening (+0.5%).
The significant rise and fall in capital deepening in Q2 2020 and Q3 2020 were due to movements in hours worked rather than changes in capital. As hours worked fell with almost no change to capital, there was relatively more capital available to each worker, leading to positive capital deepening in Q2 2020. When hours worked rebounded in the subsequent quarter, there was an opposite effect, resulting in negative capital deepening.
| Timeperiod | Total Economy | Domestic Sector | Foreign Sector |
|---|---|---|---|
| 2018 - Q4 | 100 | 100 | 100 |
| 2019 - Q1 | 97.3 | 99.7 | 94.6 |
| 2019 - Q2 | 100.5 | 100 | 101.4 |
| 2019 - Q3 | 101.1 | 101.1 | 100.7 |
| 2019 - Q4 | 98.4 | 101.4 | 93.2 |
| 2020 - Q1 | 99.5 | 103.1 | 92.6 |
| 2020 - Q2 | 98.7 | 98.7 | 96.3 |
| 2020 - Q3 | 101.3 | 96.8 | 102.7 |
| 2020 - Q4 | 101.4 | 99.7 | 100.4 |
| 2021 - Q1 | 111.5 | 103.4 | 117.4 |
| 2021 - Q2 | 112.2 | 100.6 | 122.4 |
| 2021 - Q3 | 113.8 | 98.5 | 128.7 |
| 2021 - Q4 | 114 | 102.1 | 125.8 |
| 2022 - Q1 | 115 | 98.4 | 133 |
| 2022 - Q2 | 117.6 | 98.4 | 139.6 |
| 2022 - Q3 | 120.6 | 98.3 | 146.9 |
| 2022 - Q4 | 120.1 | 98.2 | 148.2 |
| 2023 - Q1 | 113.5 | 100.9 | 131 |
| 2023 - Q2 | 114.2 | 101.3 | 133 |
| 2023 - Q3 | 108.1 | 99.6 | 122.3 |
| 2023 - Q4 | 105.8 | 99.9 | 117.3 |
| 2024 - Q1 | 107.8 | 102.2 | 118.9 |
| 2024 - Q2 | 109 | 100.8 | 126.6 |
| 2024 - Q3 | 115.5 | 99.5 | 145.7 |
| 2024 - Q4 | 117.4 | 97.2 | 156.4 |
Figure 1.7 illustrates the evolution of MFP for the Total Economy and the Domestic and Foreign sectors since the fourth quarter of 2018. In Q4 2024, MFP recorded a quarter-on-quarter increase for the Total Economy (+1.6%) and for the Foreign sector (+7.1%). For the same period MFP decreased for the Domestic sector (-2.3%). Due to globalisation events, the Foreign sector has seen MFP increase by 56.4% since Q4 2018, resulting in Total Economy MFP growth of 17.4% over the displayed period. The multifactor productivity index for the Foreign sector has now reached the value of 156.4, surpassing the previous peak of 148.2. Domestic sector MFP declined for the third consecutive quarter in 2024Q4.
| Timeperiod | Ireland - Total | Ireland - Domestic | EU Average | Czechia | France | Luxembourg | Spain |
|---|---|---|---|---|---|---|---|
| 2022 - Q1 | 111.6 | 59.4 | 41.8 | 27.4 | 53.1 | 96.3 | 36 |
| 2022 - Q2 | 113.1 | 59.2 | 41.9 | 27.7 | 52.8 | 94.7 | 36.3 |
| 2022 - Q3 | 117.1 | 59.7 | 42.2 | 27.6 | 53 | 94.1 | 36.6 |
| 2022 - Q4 | 115.4 | 59.6 | 42 | 27.5 | 52.8 | 91.9 | 36.9 |
| 2023 - Q1 | 108.8 | 61.5 | 41.7 | 27.5 | 52.6 | 91.5 | 36.6 |
| 2023 - Q2 | 110.2 | 62.1 | 41.8 | 27.4 | 52.8 | 91.2 | 36.9 |
| 2023 - Q3 | 104.1 | 61.4 | 41.8 | 27.5 | 52.8 | 91.7 | 36.6 |
| 2023 - Q4 | 102.8 | 62.1 | 41.9 | 27.3 | 53 | 91.8 | 36.9 |
| 2024 - Q1 | 101.9 | 62.3 | 44.5 | 30.7 | 56 | 99.3 | 39.7 |
| 2024 - Q2 | 101.2 | 61.8 | 44.6 | 30.7 | 56.1 | 100.2 | 39.7 |
| 2024 - Q3 | 106.4 | 60.7 | 44.8 | 30.5 | 56.3 | 98.3 | 39.8 |
| 2024 - Q4 | 107.8 | 59.6 | 44.7 | 30.5 | 56.3 | 98.2 | 39.4 |
Figure 1.8 compares labour productivity for Ireland’s Total Economy and Domestic sector to the EU average and several countries in the EU4. Ireland had the highest labour productivity (€107.8 per hour) in the EU in Q4 2024, above Luxembourg (€98.2 per hour) and over double the EU average (€44.7 per hour). Ireland’s Domestic labour productivity (€59.6 per hour) was also considerably above the EU average, and higher than all countries shown other than Luxembourg. Across the EU, average labour productivity showed a marginal decline (-0.2%) in Q4 2024, compared with the previous quarter.
4 For which data was available at the time of release.
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Statistician's Comment
The Central Statistics Office (CSO) has today (03 April 2025) published Productivity in Ireland Quarter 4 (Q4) 2024.
Commenting on the results, Kenneth Kennedy, Statistician in the National Accounts Analysis & Globalisation Division, said: “Domestic productivity in Ireland fell in October, November, and December (Q4) 2024. When compared with the previous quarter, labour productivity in the Domestic sector declined by 1.8% to a value of €59.60 per hour. In the Foreign sector and the total economy, labour productivity grew by 3.8% and 1.2% respectively in Q4 2024 (See Editor’s Note below).
While movements in productivity should generally be viewed over a longer time period, these results provide the most up-to-date picture of productivity in the Irish economy to keep policymakers, economists, and the wider public as informed as possible. Due to the considerable influence of the Foreign sector on productivity measures for the total economy, this release prioritises the Domestic sector for both presentational and analytical purposes. However, more detailed data on all sectors can be found on our open data portal, data.cso.ie, or PxStat.
Labour Productivity
Labour productivity is a key indicator for the Irish economy and measures the amount of output per hour worked in a sector. The rise in labour productivity for the total economy in Q4 2024 indicates that the economy became more efficient compared with the previous quarter. Output is measured using Gross Value Added (GVA) in constant prices in this release.
Multifactor Productivity
Multifactor productivity (MFP) is a more detailed measure of overall productivity that considers labour, capital, and additional factors such as education, skills, organisational practices, and changes in technology. MFP increased by 1.6% for the total economy in Q4 2024. Domestic sector MFP fell by 2.3%, while the Foreign sector MFP grew by 7.1%.”