Labour Productivity Statistics 2023

Overview

This publication includes annual estimates of labour productivity for Scotland’s onshore economy up to 2023.

In 2023, productivity measured as output per hour worked is provisionally estimated to have fallen by 1.1% compared to 2022, after growing by 4.6% in the previous year.
The fall in annual productivity of 1.1% can be broken down into growth of 0.1% in gross value added (GVA) which was offset by a 1.3% increase in total hours worked. The estimate for hours worked in the economy has now recovered to above the pre-pandemic level for the first time.
Output per hour worked in 2023 is 1.7% above the pre-pandemic level of 2019. This closely tracks the equivalent cumulative GVA growth of 1.8% over this period and is only partly offset by a 0.1% increase in hours worked.
The alternative measure of labour productivity is annual output per job. This increased by 0.1% between 2022 and 2023, and is 1.4% higher than in 2019.
Over the longer term since the financial crisis, between 2008 and 2023, productivity in Scotland has increased by an average of 1.0% per year. This compares to an average annual growth of 0.4% for the UK as a whole, and 0.8% per year for the EU as a whole.

What’s included in this release?

Labour productivity measures the amount of economic output, defined as gross value added (GVA) that is produced, on average, by each unit of labour input, and is an important indicator of economic performance.

This publication contains a brief summary of the key results from the latest productivity statistics, focusing in on the headline measures of change in output per hour worked.

The key results are presented in real terms, i.e. where the effect of price changes has been removed to allow for meaningful comparisons over time. Estimates are for Scotland’s onshore economy.

This release also presents analysis which helps to break down the growth in productivity based on changes within industries and the labour force.

Data

Full results including estimates of output per job, current price productivity measures (not adjusted for price changes) and estimates of labour productivity by industry are available in the downloadable tables.

Average weekly hours and jobs figure for 2023 are provisional estimates and will be up updated in line with regional data published by ONS for 2023 when available.

Annual Results

Output per hour worked

Annual labour productivity, output per hours worked 1998-2023

In 2023, annual labour productivity as measured by output per hour worked decreased by 1.1% compared to 2022. This follows a large increase of 4.6% in 2022. Annual output per hour worked is now 1.7% above the pre-pandemic level of 2019.

In 2023, the annual productivity decline of 1.1% was driven by a growth in GVA of 0.1% offset by a 1.3% increase in total hours worked, which have recovered to just above their 2019 level. The 4.6% growth in productivity, between 2021 and 2022 was driven by a 5.9% growth in GDP as the economic activity continued to recover from the large drop in 2020, which was partially offset by 1.2% recovery in hours that year.

Output per job

Annual labour productivity, output per job, 1998-2023

The alternative measure of labour productivity, output per job, increased by 0.1% in 2023, after increasing by 4.9% in 2022 and 9.9% in 2021. This was following a decrease of 12.1% in 2020. The much larger movements in output per job between 2019 and 2021 reflect the changes in average weekly hours during the COVID-19 pandemic when workers were furloughed and economic activity was restricted.

In 2023, the average hours worked per job have recovered to around the same level as 2019 for the first time.

Longer term trends

Output per hour worked, percentage change compared to the previous year and pre and post 2008 average growth

Annual productivity growth can vary widely from year to year. Looking over the longer term it has grown by an average of 1.0% per year since the 2008 financial crisis and onset of recession. In the decade prior to the recession, from 1998 to 2008, output per hour worked increased by 1.3% per year on average.

UK and International comparisons of productivity

Many countries have similarly seen a slowdown in productivity growth since the global financial crisis. Between 2008-2023, Scotland’s average annual labour productivity grew by 1.0%. This compares to an average annual growth of 0.4% for the UK as a whole, and 0.8% per year for the EU as a whole.

Average annual growth in real terms GDP per hour worked, percentage

Region	1998-2008	2008-2023
EU27	1.5	0.8
UK	1.8	0.4
Scotland	1.3	1.0
Comparable figures for the group of OECD members as a whole are no longer available prior to 2011.

About Labour Productivity Statistics

Labour productivity measures the amount of economic output that is produced, on average, by each unit of labour input, and is an important indicator of economic performance.

Output is defined as gross value added (GVA). For some international comparisons using data from the OECD, gross domestic product (GDP) is used instead, which is equal to total GVA plus product taxes.

Labour input is measured in terms of the number of jobs in the economy (giving a measure of output per job), and also the total number of hours worked (giving a measure of output per hour worked). Output per hour worked is usually viewed as the most comprehensive indicator of labour productivity and is thus taken as the headline measure.

Labour productivity statistics presented in volume or real terms (where the effects of price changes have been removed) are used to analyse changes in the level of activity over time within a particular country or industry, or to compare growth rates between countries or industries on a consistent basis. Results are indexed to a reference year, set at 2019=100 in this release for consistency with the GDP statistics published by the Scottish Government.

Results presented in nominal terms or current prices (not adjusted for the effects of price changes) are used to make comparisons of the relative level (not growth rate) between countries or industries at a particular point in time.

Further information on the production and interpretation of these statistics is available here.

An Official Statistics publication for Scotland

These statistics have not been assessed by the Office for Statistics Regulation and have therefore not yet been designated as National Statistics.

Official and National Statistics are produced to high professional standards set out in the Code of Practice for Statistics. Both undergo regular quality assurance reviews to ensure that they meet customer needs and are produced free from any political interference.

Correspondence and enquiries

For enquiries about this publication, please contact: economic.statistics@gov.scot

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