DEVELOPMENT
The pdf-version - Eesti Koostöö Kogu
The pdf-version - Eesti Koostöö Kogu
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
labour costs at the company level reduces profitability and<br />
causes inflationary pressure, because the company directs<br />
the increased labour costs to the consumer, i.e. increases<br />
the prices for products and services. It should also be noted<br />
that while unit labour costs only examine the connection<br />
between labour costs and productivity, other costs besides<br />
labour costs, like capital costs, are also important.<br />
4.4.2<br />
The general level of productivity in the<br />
Estonian business sector<br />
The analysis of Estonia’s productivity level starts from the<br />
viewpoint of the country as a whole. At this macro level<br />
the GDP indicator is used as the measure of productivity,<br />
which can be used both at its nominal value or adjusted<br />
for purchasing power parity. In the latter case, the differences<br />
in the prices of goods and services in various<br />
countries are taken into account, and the GDP indicator<br />
for the given state is adjusted accordingly. When calculating<br />
the productivity of the entire business sector, the GDP<br />
indicator is divided by the number of people employed<br />
in the economy as a whole and the hours that they work.<br />
Thus, we get various indicators of labour productivity.<br />
Hourly productivity is a somewhat more precise measure<br />
of labour productivity, than the level of productivity per<br />
worker, because some of the people who are employed<br />
may not be working fulltime (Table 4.4.1).<br />
Based on a summary of OECD data, Estonia ranks<br />
32 nd , i.e. the next to the last position compared to the<br />
reference states. Chile is below us and Hungary slightly<br />
above, with the Czech Republic, Slovakia, and the South<br />
Korea slightly above that. A large group of small euro area<br />
states – Austria, Finland, Denmark – along with Canada<br />
and Japan, rank significantly higher. Of the reference<br />
states, Ireland has a particularly high productivity level,<br />
which reaches 67 USD per hour, followed by Netherlands,<br />
with an hourly productivity of 60 USD.<br />
4.4.3<br />
Productivity in Estonia’s main economic<br />
spheres<br />
Estonia’s position related to labour productivity, in<br />
comparison to the other reference states, is shown<br />
in Table 4.4.2. The 2010 data from Eurostat and the<br />
national statistics offices related to the level of value<br />
added per worker has been used. The ten aggregated<br />
areas of activity have been differentiated in the comparison.<br />
For the better visualisation of the results, the<br />
relative level of Estonian productivity by the branches<br />
of the economy is shown as a percentage of the level of<br />
the corresponding state.<br />
The economic branches of activity where Estonia’s<br />
labour productivity is higher than the comparative country,<br />
i.e. the ratio is over one hundred, have been shaded.<br />
In the comparison, Estonia’s productivity is, unfortunately,<br />
significantly lower than the majority of the states in most<br />
of the economic spheres. Only compared to Hungary is<br />
Estonia’s productivity level higher in most of the economic<br />
activity areas, but manufacturing industries productivity<br />
in Estonia is lower than in Hungary. At that, Hungary’s<br />
economy has been in decline during the last few years,<br />
and as a result of the financial crisis (primarily due to the<br />
impact of currency exchange fluctuations), has suffered<br />
more than the other states. Estonia’s level of productivity<br />
is higher than the corresponding indicators for the Czech<br />
Republic and Slovakia, in several fields. Compared to<br />
the Czech Republic, Estonia has higher productivity in<br />
water supply, transport, and administrative and support<br />
service activities (building management, labour leasing,<br />
etc.). Estonia’s productivity is also somewhat higher than<br />
Slovakia’s level in water supply and transportation, as well<br />
as accommodations and food service. Water supply in<br />
Estonia is also more productive than in Slovenia.<br />
Compared to the remaining states, Estonia’s level<br />
of productivity is significantly lower. The areas that<br />
Table 4.4.2<br />
Productivity by aggregated areas of activity (as a percentage of the level in the reference states in 2010)<br />
Manufacturing<br />
industry<br />
Electricity<br />
energy, etc.<br />
Water supply<br />
Trade<br />
Transportation<br />
Accommodation,<br />
food service<br />
Information and<br />
communications<br />
Real estate<br />
Professional,<br />
scientific and<br />
technical<br />
Administrative<br />
and support<br />
service activities<br />
Ireland 11 24 61 33 40 40 20 82 29 41<br />
Switzerland 18 31 30 14 28 21 24 23 16 33<br />
Denmark 22 27 26 29 27 32 35 22 23 32<br />
Netherlands 24 26 43 34 41 42 36 20 30 64<br />
Austria 26 43 43 34 40 31 42 18 31 34<br />
Finland 28 29 38 32 50 27 42 15 33 45<br />
EU 27 38 45* 45 60* 43 40 36 34 55<br />
Slovenia 64 91 113 55 74 50 68 57 63 96<br />
Hungary 75 78 177 124 152 146 92 120 115 135<br />
Czech Republic 82 40 148 83 125* 90 66 63 74 110<br />
Slovakia 93 66 164 84 138 108 71 69 88 94<br />
Source: Eurostat<br />
*2009 data. EU27 – European Union average.<br />
Estonian Human Development Report 2012/2013<br />
175