Labour productivity

In 2023, labour productivity (open definition) in the Flemish Region is estimated at 100,700 euro purchasing power standard (open definition) (PPS). Labour productivity is the ratio of gross domestic product (open definition) (GDP) to employment in a country or region.

Labour productivity has risen almost continuously in recent years. The year 2020 was an exception because of the impact of the COVID-19 crisis on economic activity. In 2021, labour productivity was again roughly at pre-COVID-19 levels, with a further climb in 2022 and 2023.

Commuting, i.e. workers living in one region and working in another, has little impact on labour productivity. If the labour of commuters not living in the Flemish Region is taken into account, Flemish labour productivity would be 2% higher in 2023. For the Walloon Region, the increase would be 3%. Labour productivity in the Brussels Capital Region is hardly effected by commuting. This is because commuting has a roughly equal impact on both GDP and employment (numerator and denominator of labour productivity).

Within Belgium, the Brussels-Capital Region has the highest labour productivity. This is due to the typical activities of a capital region that generate a lot of gross added value. The Walloon Region has the lowest labour productivity, but this is still above the average of the European Union (EU27).

The labour productivity in the Flemish Region is high compared to other European countries. Ireland and Luxembourg scored higher than the Flemish Region in 2020. Belgium also ranked slightly higher than the Flemish Region. The 3 neighbouring countries had a lower labour productivity. There are considerable differences among the EU countries. In Ireland, for example, in 2020, labour productivity was 4 times higher than in Bulgaria, which is at the bottom of the league. By 2023, labour productivity is expected to increase in most countries so no major changes are expected in the ranking.