Istat releases productivity statistics for the period 1995-2015. The productivity series are coherent with the results of the latest release of national accounts.
Labour productivity in the measured sector fell by 0.3% in 2015, as value added increased by 0.9% and hours worked increased by 1.1%. In the same year capital productivity rose by 1.9%, as capital input fell by 1.0%, and multifactor productivity increased by 0.4% as the combined inputs of capital and labour grew less than value added (+0.5%).
The decrease in labour productivity in 2015 was accounted for by a fall in capital deepening (i.e. a reduction of capital input relative to labour input) which contributed -0.7 percentage points, with total factor productivity contributing for +0.4 percentage points.
Over the entire period 1995-2015, average annual growth rate in value added was 0.5%. Labour productivity rose by 0.3% due to labour input (0.2%) increasing by less than the growth in value added. In the same period capital input (+1.5%) and the combined inputs of capital and labour (0.6%) rose more than value added and both capital productivity and total factor productivity fell (respectively -0.9% and -0.1%).
The growth in labour productivity in 1995-2015 was driven only by capital deepening, which contributed +0.4 percentage points, with total factor productivity contributing for -0.1 percentage points. Tangible non-ICT capital contributed 0.3 percentage points, while intangible non-ICT capital (mainly research and development) and ICT capital (i.e computer hardware, communications equipment and computer software) both contributed 0.1 percentage points.
Over the last cycle (2009-2013) value added decreased by 0.4% on average. Labour productivity, capital productivity and total factor productivity all rose (respectively by 1.1%, 0.1% and 0.8%) due to hours worked, capital input and the the combined inputs of capital and labour all decreasing more than value added (respectively -1.5%, -0.5% and -1.2%).
The growth in labour productivity in 2009-2013 was mainly driven by total factor productivity, which contributed 0.8 percentage points, with capital deepening contributing for 0.3 percentage points.
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