Ireland’s labour productivity falls in Q1 ’24

Ireland’s total economy’s labour productivity decreased by 1.1 per cent in the first quarter of 2024, reaching €99.70 per hour, according to data released on Monday.

The decline was driven largely by a 5.1 per cent drop in productivity within the foreign-owned multinational enterprise (MNE)-dominated sectors, where output per hour fell to €356.2.

In contrast, the domestic sector exhibited growth, with labour productivity rising by 0.8 per cent to €59.40 per hour. This marks a continued upward trend in domestic sector productivity since Q1 2022.

Multifactor productivity (MFP), which accounts for labour, capital, and other factors like education and technology, increased by 1.0 per cent for the total economy. The domestic sector saw a 2.2 per cent rise in MFP, while the foreign sector experienced a slight decline of 0.6 per cent.

Statistician Doireann O’Brien noted the importance of viewing productivity trends over longer periods but emphasised that the latest data provides a crucial snapshot for policymakers and economists.

Attribution: The Central Statistics Office (CSO)

Subediting: M. S. Salama