Worth Reading – New OECD Compendium of Productivity Indicators

The new Compendium, now an online Webbook, provides a set of internationally comparable statistics including labour productivity and the contributions of labour, capital services and multifactor productivity (MFP) to GDP growth. It also discusses the potential impact of COVID-19 on productivity performance, and the main measurement challenges brought about by the pandemic.

Productivity is commonly defined as a ratio between the volume of output and the volume of inputs. In other words, it measures how efficiently production inputs, such as labour and capital, are being used in an economy to produce a given level of output. Productivity is a key source of economic growth and competitiveness and, as such, internationally comparable indicators of productivity are central for assessing economic performance.

The OECD Compendium of Productivity Indicators examines recent and long-term trends in productivity, providing insights on:

  • Cross-country comparisons of labour productivity levels
  • The contributions of labour and capital inputs, and multifactor productivity, to economic growth
  • Industry contributions to labour productivity growth
  • Productivity in small and medium-sized enterprises (SMEs) and large firms
  • Investment by asset type
  • Labour income and productivity
  • Productivity and the COVID-19 pandemic

The OECD Productivity Statistics Database

The indicators presented in this publication are drawn from the OECD Productivity Statistics Database, which provides a consistent set of annual estimates of labour, capital and multifactor productivity growth, unit labour costs and other related indicators to analyse the drivers of economic growth in OECD member countries and G20 economies. The database includes the following indicators:

  • GDP per capita and labour productivity levels
  • Labour productivity growth
  • Measures of labour input, such as total hours worked and total persons employed
  • Measures of capital input, as an aggregate and by type of asset
  • Multifactor productivity growth

Country, time and industry coverage of the Compendium

The OECD Compendium of Productivity Indicators includes data for OECD countries in all Chapters, and additionally for G20 countries in the Chapter on investment by asset type.

It covers the period 2000-2019 in most Chapters, with breakdowns between 2000-2007 and 2010-2019 to visualise slowdowns in GDP and productivity growth. The chapter on labour income and productivity includes data since 1990 whenever possible. Due to data availability constraints, at this stage only the last Chapter on productivity and the COVID-19 pandemic includes data for 2020.

Throughout this publication, all breakdowns by industry follow the International Standard Industry Classification of all Economic Activities (ISIC). Indicators by industry are presented according to its latest version, ISIC Rev.4, or the European equivalent, NACE Rev.2 (Nomenclature statistique des activités économiques dans la Communauté européenne).

Read the Webbook here