Slowdown in labour productivity growth
Labour productivity growth, measured as real output per hour worked, slowed down in 2008–2017 compared to 2000–2007 (see Figure 1.7 above) in all but three EU Member States (Ireland, Malta and Spain). While in several countries it is expected to accelerate in 2018–2020, it will still not grow as fast as in 2000–2007. In the medium and long term, growth in labour productivity provides the material base for sustainable real wage growth, so these figures constitute a stark projection for workers. In fact, given that in many Member States labour productivity gains have not been fully translating into real wage increases for quite some time (see Chapter 3 and also Pasimeni 2018,Theodoropoulou 2019), the slowdown in labour productivity growth is likely to have an even greater adverse effect onreal wages unless policy action is taken.
more information in Benchmarking Working Europe 2019 chapter 1 'Macroeconomic developments in Europe: tackling the growth, inequality and climate change challenges'