The data from the International Labour Organization (ILO) highlighted, on October 18, 2024, the world’s top countries by GDP per hour worked. The measure, known as labor productivity, shows the efficiency of workers in producing output relative to hours worked. This data provides key insights into economic growth and human capital efficiency.
Labor Productivity Overview
Labor productivity is measured in International dollars (Int$), which is a currency used to compare purchasing power between different countries by adjusting for price differences. It helps economists and policymakers understand how efficiently countries are using labor to generate output.
Increased labor productivity plays a crucial role in driving long-term economic growth. Countries with high productivity often have stronger economies and greater wealth per capita.
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Top 15 Countries by GDP per Hour Worked
Here are the top 15 countries ranked by GDP per hour worked:
- Luxembourg (Int$ 146)
- Ireland (Int$ 143)
- Norway (Int$ 93)
- Netherlands (Int$ 80)
- Denmark (Int$ 78)
- Switzerland (Int$ 76)
- Belgium (Int$ 75)
- Austria (Int$ 74)
- Singapore (Int$ 74)
- Sweden (Int$ 70)
- Guyana (Int$ 70)
- United States (Int$ 70)
- Finland (Int$ 69)
- Germany (Int$ 68)
- France (Int$ 68)
The global average for labor productivity stands at Int$ 26, well below the levels seen in the top-ranking countries.
Key Insights
- Luxembourg leads the world in labor productivity, thanks to its strong financial services sector, which generates
- high output with a relatively small workforce. Luxembourg’s GDP per hour is almost three times higher than Qatar’s.
- Ireland follows closely behind, also benefiting from its high-value industries, particularly in technology and pharmaceuticals.
- Nine out of the top 10 countries are in Europe, highlighting the region’s efficiency in utilizing labor despite its smaller populations.
- Singapore is the only non-European country in the top 10, driven by its focus on finance and high-value industries.
- European Efficiency and Worker Protections
Europeans generally work fewer hours than Americans while maintaining similar or higher productivity levels. This is partly due to Europe’s focus on high-value-added industries, like financial services and energy. Moreover, the European Union (EU) enforces some of the world’s strongest worker protections, including mandatory paid time off, which may contribute to a better work-life balance and higher productivity.
Interestingly, while German workers were 1% more productive than American workers in 2022, U.S. workers produced 20% more over the entire year. This suggests that total output can be affected by factors such as the number of hours worked or the overall length of the work year.
Labor productivity remains a critical measure of economic strength and efficiency. Countries with higher GDP per hour worked often enjoy higher standards of living and stronger economies. Europe continues to lead the way in labor productivity, although countries like Singapore and the U.S. are also key players in the global economy.
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