Labor productivity in the European Union increased only slightly in the first quarter of 2026. Compared to the same period last year, it rose by 0.1% both per employed person and per hour worked. In Latvia, this key indicator of the country's success has decreased.
Labor productivity is calculated based on data on gross domestic product (GDP) and employment and reflects the volume of real output produced by one employed person or per hour worked.
According to Eurostat, labor productivity increased in most EU countries during the reporting period. The highest growth in labor productivity per worker was recorded in Denmark — at 4.8% compared to the first quarter of 2025. This was followed by Lithuania (+3.5%) and Slovenia (+2.7%). A decrease in the indicator was noted in only two countries — Ireland (-16.9%) and Italy (-0.3%).
In terms of labor productivity calculated per hours worked, Denmark also led with an increase of (+5.1%). It was followed by Sweden (+3.0%) and Poland (+2.8%).
A decrease in labor productivity per hour worked was registered in six EU countries. The most significant decline was recorded in Ireland (-17.1%), Latvia (-1.3%), and the Czech Republic (-0.8%).
For reference regarding Ireland: The Irish economy is hyper-concentrated on foreign IT and pharmaceutical giants (Google, Microsoft, Pfizer). Sudden reductions in export volumes, changes in supply chains, or patent payments by these companies sharply distort the overall picture (for example, the country's GDP decline of 12.1% in the first quarter was caused by a revision of activity in this sector).
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