A new study by the European Employers’ Institute (EEI), conducted by Rexecode, finds that the EU–US labour productivity gap has widened significantly since 2019. In 2024, EU hourly labour productivity reached $72/hour (PPP) compared with $116/hour in the United States - a 38% gap. Over 2019–2024, US productivity grew by +9.7%, while the EU recorded only +2.4%, deepening the gap by 6.7%. The report highlights four main drivers: the EU’s employment-preservation approach during the pandemic,...

The second study on productivity, commissioned by the European Employers’ Institute (EEI) and conducted by Rexecode (France), offers a  detailed country- and sector-level analysis  of the EU–US productivity gap over the 1995–2019 period. The findings show that the core EU economies – Germany, France, Italy, Spain, Belgium, and the Netherlands – are the main contributors to the EU’s slower productivity growth, despite their strong overall contribution to the European economy. While newer...

The overall economy-wide hourly labour productivity in the EU has grown by an average of 1% per year over the past 25 years, compared to...