Productivity in industry
Labour productivity falls sharply in 2020, both in industry and in the entire economy
Labour productivity in the industry in the Flemish Region can be estimated at 99,100 euro in 2020. Labour productivity is the ratio between gross value added and employment in industry or the amount of gross value added that an employee in industry produces.
Labour productivity increased almost continuously between 2005 and 2019. The recession years 2008 and 2009 saw a slight slowdown. In 2020, however, labour productivity in industry plunged (-10.7%). The outbreak of the Covid-19 crisis caused a significant decline in gross added value, which is initially not so strongly followed by a fall in employment. For the entire Flemish economy, the decline is -9.7%.
Labour productivity in the entire Flemish economy (77,700 euros in 2020) is at a lower level than labour productivity in industry.
Flemish labour productivity higher than EU average
In 2017, labour productivity in industry in Belgium was highest in the Flemish Region (110,500 euro), followed by the Walloon Region (102,600 euro) and the Brussels-Capital Region (97,100 euro). The latter is remarkable, because the total Brussels labor productivity for the entire economy is at a higher level than the Flemish or Walloon one.
The EU27 average is lower (66,300 euro). In comparison with our neighbours, the Netherlands is the only country with higher labour productivity figures (113,100 euro).
Labour productivity: a measure of efficiency of the labour deployed. This shows the relationship between the gross value added and employment in a sector, or in a country or region.
Gross value added: the difference between the market value of the goods and services produced in one year and the market value of the goods and services used in the production process in one year
Employment: the total number of persons (salaried and self-employed) working in a country or region
Industry: the sector includes the extraction of minerals and the processing industry but not petroleum refining.