GDP per capita COMPARED (VS) Labour productivity in EU in 2019. [Source: Eurostat 2021]

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  1. Three surprising things that I notice:

    * Central Europe Highland is the core of wealth (Bavaria, Northern Italy, Eastern Austria). If Switzerland would have been depicted, would have been off the charts, lol.
    * Both Poland and Romania have the wealth concentrated in their capitals (EDIT, actually the entire Eastern EU is on the same pattern except Bulgaria)
    * What makes Ireland that productive?

  2. Man Wallonia and Northern France getting robbed. Darker blue productivity and light orange GDP, I think it’s the only region where that happens.

  3. GDP PER CAPITA & LABOUR PRODUCTIVITY
    “Two sides of the same coin?! Often, NOT always”

    Gross domestic product (GDP) per capita is often used as the barometer 🤒🌡️when comparing labor productivity and the standard of living across countries.

    GDP per hour worked is a measure of labour productivity. It measures how efficiently labour input is combined with other factors of production and used in the production process.

    Over the long term, ➡️ the ONLY WAY that GDP per capita can grow continually is if the productivity of the average worker rises OR if there are complementary increases in capital.

    An economy’s rate of productivity growth is closely linked to the growth rate of its GDP per capita, although THE TWO ARE NOT IDENTICAL.
    ➡️ For example, if the percentage of the population who holds jobs in an economy increases, GDP per capita will increase but the productivity of individual workers may not be affected.

    A common measure of productivity per worker is money value per hour the worker contributes to the employer’s output.
    Labor productivity measures the hourly output of a country’s economy. Specifically, it charts the amount of real gross domestic product (GDP) produced by an hour of labor.
    Growth in labor productivity depends on three main factors:
    1. SAVING and INVESTMENT IN PHYSICAL CAPITAL.
    2. NEW TECHNOLOGY.
    3. HUMAN CAPITAL.

    These can also be viewed as key components of economic growth. Physical capital can be thought of as the tools workers have to work with. Another factor that determines labor productivity is technology.

    A decline in productivity stunts the GDP or the economic output ➡️ in comparison to the number of people.
    Low productivity indicates that resources are not utilizing their skills and competencies to their maximum potential which increases company’s resourcing costs.

    With growth in labor productivity, an economy is able to produce increasingly more goods and services for the same amount of work. And, because of this additional production, it is possible for a greater quantity of goods and services to ultimately be consumed for a given amount of work.

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