Eurostat has launched new sections dedicated to new productivity indicators: labour and capital productivity and multifactor productivity.
Labour and capital productivity
Labour and capital are key input factors affecting productivity growth. They are widely used for economic analysis and forecasting, policy design and policy making. The new set of annual productivity indicators with breakdowns by industry, region and asset allows a deeper analysis of productivity trends. Previously, Eurostat disseminated just a few indicators on labour productivity for the total economy.
Comparability and availability aspects have been taken into account to select this set of indicators. Metadata information is also provided to ensure transparency for users.
Simultaneously, a measure of ‘crude’ multifactor productivity (MFP) is being disseminated as experimental statistics.MFP is a measure of economic performance that compares the amount of goods and services produced (output) to the amount of combined inputs used to produce those goods and services. MFP growth therefore reflects the overall efficiency with which labour and capital are combined in a production process.
The indicator is directly based on national accounts labour input and capital stocks data, without need for assumptions or additional information (to derive quality-adjusted labour input or capital services), which are used for more sophisticated multi-factor productivity measures.
This indicator is provided at the total economy level and on an annual basis.