Istat releases productivity statistics for the period 1995-2017. The productivity series are coherent with the results of the latest release of national accounts.<\/p>\n
The adopted methodology closely follows the approach outlined in the OECD Manual on Productivity Measurement. Productivity is defined as the ratio of a volume measure of output to a volume measure of input. Both single factor productivity measures (relating a measure of output to a single measure of input) and multifactor productivity measures (relating a measure of output to a bundle of inputs) are estimated. <\/p>\n
Labour productivity in the measured sectors increased by 0.8.% in 2017, as value added grew by 2.1% and hours worked went up by 1.3%. In the same year capital productivity rose by 1.2%, as capital input and multifactor productivity grew respectively by 0.9% and 1.0%. <\/p>\n
The increase in labour productivity in 2017 was accounted for by a fall in capital deepening (i.e. a reduction of capital input relative to labour input) which contributed for -0.2 percentage points, with total factor productivity contributing for +1.0 percentage point.<\/p>\n
Over the whole period 1995-2017, average annual growth rate in value added was 0.7%. Labour productivity rose by 0.4% due to labour input (+0.3%) increasing less than value added. In the same period capital input (+1.4%) and the combined inputs of capital and labour (0.7%) rose more than value added and capital productivity fell (-0.7%).<\/p>\n
The growth in labour productivity in 1995-2017 was driven only by capital deepening, which contributed for +0.4 percentage points per year, with total factor productivity bringing in average no contribution. Tangible non-ICT capital contributed 0.2 percentage points, while ICT capital (i.e computer hardware, communications equipment and computer software) and intangible non-ICT capital contributed both for 0.1 percentage points in terms of yearly average.<\/p>\n
Over the last cycle (2009-2015) value added decreased by 0.1% on yearly average. Labour productivity, capital productivity and total factor productivity all rose (respectively by +0.8%, +0.5% and +0.7% per year) due to hours worked, capital input and the combined inputs of capital and labour all decreasing more than value added (respectively -0.9%, -0.5% and -0.8%).<\/p>\n
The growth in labour productivity in 2009-2015 was mainly driven by total factor productivity, which contributed +0.7 percentage points, with capital deepening contributing for +0.1 percentage points. <\/p>\n