Labor Productivity in Cyprus grows 0.1% in 2016

In 2016, labor productivity for Cyprus economy was estimated at Euros 47,138 per employee and Euros 26.33 per hour worked, according to revised data published by Cyprus Productivity Center.

According to the above data, the annual change in Labor Productivity for the economy as a whole (both GDP per employee and GDP per hour worked) for 2016 was 0.1%.

The change in Labor Productivity is due to GDP growth (2.8%), with the same increase in employment, both in terms of number of employees and working hours (2.7%).

A positive change in Labor Productivity, was recorded in the sectors of Construction, Hotels and Restaurants and Manufacturing Industries.

Negative changes in Labor Productivity were recorded in the sectors of Information and Communication and Financial and Insurance Activities.

The service sector which has the largest contribution to GDP and employment (86.7% and 80.2% respectively), shows a Gross Value Added Labor Productivity per employee equal to 108.9% of the Total Labor Productivity of the economy, much higher than that of the Primary and Secondary Sector.

Labor productivity (GDP per person employed) of the Secondary Sector, which contributes 10.9% to GDP and 15.7% to employment, was at 69.3% of Labor Productivity of the whole economy.

Productivity of the Primary Sector is only 58.6% of the Labor Productivity of the total economy, since this Sector contributes only 2.4% of GDP while occupying significantly more people (4.1% of the total number of employed).

The level of Labor Productivity shows significant differences between the different sectors of economic activity.

The Property Management sector shows Labor productivity about 20 times higher than that of the whole economy. The Construction sector shows Labor Productivity (GDP per hour worked) equal to 64.1% of the total economy. The Manufacturing Division shows Labor Productivity equal to 62.8% of the total economy. The Agriculture, Forestry and Fisheries sector shows significantly lower Labor Productivity than the overall economy (33.8%).

Based on the latest available data from Eurostat, in 2015, Labor Productivity in Cyprus, measured as GDP per employee, was 85.2% of the EU average, ranking Cyprus at the 15th position among the 28 EU Member States . Labor productivitymeasured as GDP per hour worked, was 77.4% of the EU average in 2015, ranking Cyprus in the 15th place among the 28 member countries of the EU.

Source: Cyprus News Agency