Labour productivity for the domestic sector (€55.2 per hour) increased by 2.2 per cent in Quarter 2 2023 compared with the previous quarter, according to the Central Statistics Office (CSO),
Labour productivity for the foreign sector (€414.5 per hour) also rose by 2.2 per cent, while total economy labour productivity (€105.5 per hour) was up by 2.3 per cent.
They said there were significant increases in labour productivity for manufacturing (domestic: 14.4 per cent, foreign: 5.8 per cent) following reductions in the previous quarter.
Labour productivity measures the amount of output per hour worked in a sector, so the growth in productivity for Q2 2023 indicates that the economy became more efficient compared with the previous quarter.
There were increases in labour productivity for sectors such as professional, scientific & technical activities (5.1 per cent) and financial & insurance Activities (3.5 per cent).
Several domestic sectors saw reductions in labour productivity in Q2 2023 such as transportation & storage (-7.1 per cent), construction (-4.1 per cent) and accommodation & food (-3.8 per cent).
Multifactor productivity for the domestic sector grew by 2.4 per cent, while the foreign sector was up by 3.5 per cent.
Multifactor productivity (MFP) is a more detailed measure of overall productivity that considers labour, capital and additional factors such as education, skills, organisational practices and changes in technology.
It grew by 2.8 per cent for the total economy in Q2 2023. The domestic sector MFP was up by 2.4 per cent, while the foreign sector MFP also rose by 3.5 per cent.
The level of capital services in the domestic sector declined by 0.4 per cent in Q2 2023, while foreign capital services were also down by 1.2 per cent.
