Saturday, 16 October 2010

Ireland needs productivity

Ireland's productivity was €18,850 (GNP) per worker in the 1st quarter of 2008. Over the next 12 months this dropped by about €1,000 per worker as a result of a fall in output of 13%, together with a drop of 8% in the number of workers.

Then in the next 12 months (taking us to the first quarter of 2010), the drop in output was only 4% cent. However, the fall in the number of people at work was slightly greater than this, so there was a small improvement in productivity - in terms of output per worker.

The decline in the workforce is still going on - though more slowly. Ireland thus has to maintain its productivity growth to keep output levels up.

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