Total labour productivity drops 1.1% in first three months of 2024
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Total Economy labour productivity dropped by 1.1% in the first three months of 2024, falling to €99.70 per hour compared with the previous quarter, latest figures from the Central Statistics Office (CSO).
Labour productivity for the Domestic sector grew to €59.40 per hour between January and March 2024, up by 0.8% compared to the previous three month period, while labour productivity for the Foreign sector dropped to €356.20 per hour, reflecting a fall of 5.1%.
Total Economy multifactor productivity increased by 1% in the first three months of 2024 compared with the previous quarter.
Multifactor productivity for the Domestic sector rose by 2.2%, while Foreign sector multifactor productivity fell by 0.6%, the CSO said.
Both Gross Value Added (GVA) and hours worked increased in the Domestic sector, up by 1.4% and 0.6% respectively, with the rise in Domestic GVA due to increases in sectors such as Domestic Manufacturing (+6.4%) and Transportation & Storage (+12.3%), the CSO said.
However, sectors including Construction and Financial & Insurance Activities showed decreases in GVA, dropping by 5% and 3.8% respectively.
Hours worked showed different results across the Domestic sectors with Energy & Water and Mining and Quarrying showing increased hours worked in the quarter up by 11.1% and 30.3% respectively, while Wholesale & Retail (-2.5%) and Accommodation & Food Services Activities (-1.1%) showed declines in hours worked.
Noting the decrease in hours worked across the accommodation and food services sector, the RAI said closures are "one part of the story when it comes to hospitality’s woes," adding that reduced hours and staff numbers for those that remain open is the other.