Labour productivity is an important economic indicator that is closely linked to economic growth, competitiveness, and living standards. Labour productivity represents the total volume of output (measured in terms of Gross Domestic Product, GDP) produced per unit of labour (measured in terms of the number of employed persons) during a given time reference period. The indicator allows data users to assess GDP-to-labour input levels and growth rates over time, thus providing general information about the efficiency and quality of human capital in the production process for a given economic and social context.
Given its usefulness in conveying valuable information on a country’s labour market situation, labour productivity growth was one of the indicators selected to measure progress towards the achievement of the Millennium Development Goals (MDGs), under Goal 1 (Eradicate poverty and hunger), and it is included as one of the indicators to measure progress towards the achievement of the Sustainable Development Goals (SDG), under Goal 8 (Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all).
ILOSTAT presents ILO modelled estimates and projections of labour productivity, both in constant 2005 US$ and in constant 2011 international $ in purchasing power parity (PPP).