The 10 Countries with the Highest Productivity in 2023

The Organisation for Economic Co-operation and Development researchers recently released the list of the ten most productive countries in 2022. These countries' workers are expected to produce more per hour than any other OECD country. High productivity often goes hand-in-hand with higher economic prosperity, so these are likely to be highly desirable places to live and work in.

Knowing about these most productive countries will benefit you if you want to be as productive as possible.

These rankings will not only tell you where people are more productive but also help you discover some interesting things about productivity as a whole.

We have compiled a list of these ten countries. Make sure to check out this list.

But before that, let's understand what productivity is. And how to calculate it?

Also, remember that this list will be updated every year, so make sure to revisit each year to see how your country ranks!

Let's get started.

What Is Productivity?

Productivity measures how efficiently businesses use their input factors (such as land, labor, and capital) to create output. In other words, productivity tells us how much value we get from our efforts.

Specifically, productivity measures how many units or products we get per hour worked by an employee. Productivity allows companies to generate the revenue they bring in after paying all the expenses.

A company that produces $100 million worth of goods and services at $80 million has generated $20 million in profits. On a macroeconomic level, higher productivity translates into more profits, which leads to increased investment and growth.?

How To Calculate Productivity?

The standard way to measure productivity is by GDP per capita, which means gross domestic product. This statistic is determined by dividing a country’s total economic output by population.

For example, if a nation produces $1 trillion worth of goods and services and has a population of 100 million, its GDP per capita would be $10 million.

The OECD collects productivity data on individual countries and aggregates them into economic areas (EA) groups. Each EA includes two or more countries that are broadly similar according to their stage of development, size, and level of integration into the global economy, and then productivity is measured at a regional level.

Let's now take a look at our -

List of the Top Ten Most Productive Countries

1) Ireland

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Ireland has one of the highest productivity rates among OECD countries, measured as GDP per hour worked. The productivity per hour in Ireland is $99.13, which is the greatest among many nations. This is largely due to the booming software and hardware industries and a highly-skilled workforce.

Over 50% of Ireland’s workforce has a tertiary education, and about 34% hold a post-secondary degree, more than twice that of North America and over three times higher than Europe overall. These factors have catapulted Ireland into one of the world's most productive countries.

2) Germany???????????????????????????????

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Germany, one of the most technologically advanced countries globally, is the second-most productive country on our list.

Germany’s productivity is $66.71 per hour. Based on data from several sources, Germany boasts a projected 9.5% productivity growth between 2018 and 2022.

The country’s high productivity is due to a high degree of domestic consumption, balanced by a highly-skilled workforce that can also be found in other top manufacturing countries such as Japan.

It’s also worth noting that German productivity per capita is well above many of its neighbors (including France and Italy), helping it rank among Europe’s most competitive economies.

3) Netherlands?????????????????????????????

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The productivity per hour in the Netherlands is $61.43. It has been growing at an average of 2.5% each year over the past five years. This makes it third on our list of countries with the highest productivity.

The country’s sustainable growth is primarily due to its highly developed market, infrastructure, and education systems. The Netherlands exports transportation equipment, chemicals, petroleum products, and financial services to Europe, Asia, and North America.

4) United States?????????????????????????????????

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According to the U.S. Department of Labour, full-time American employees work 41.5 hours per week, with around 11% working more than 50 hours each week.

That's why it's no surprise that America is home to some of the world's best productivity workers. A quarter of them have college degrees, and they collectively clock an average of 44 hours per week at work. The U.S. workforce is primarily employed in professional services, finance, and manufacturing, although technology firms are increasingly hiring in the U.S.

5) Luxembourg??????????????????????????????

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In Luxembourg, the average workweek is around 40 hours, and the productivity per hour is $68.36. With productivity stats of $119,716 per employee and a GDP growth rate of 2.55%, Luxembourg takes fifth place on our list of top countries for productivity in 2022.

The country is predicted to continue to perform well through 2022, with an expected GDP increase of 4.07%. In particular, productivity is predicted to grow by 4% annually due to exports & imports rising by 6%. Overall growth will be positively impacted as a result.

6) Belgium???????

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Belgium is one country where workers earn more, and people take fewer sick days. Workers in Belgium generate $59.65 of GDP every hour they work.

Its productivity is at 97.5 percent, among Europe’s most productive nations, partly because of its well-educated workforce. Nearly 60 percent of Belgians have a tertiary education, meaning they can get creative and come up with cutting-edge solutions to problems that others may not even be aware exist.

7) Sweden??????

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Despite a small population of just 9.6 million people, Sweden has long been one of Europe’s most productive economies and is home to several leading companies, including H&M and Ikea.

By 2022, output per hour worked is expected to rise by 0.9%, ranking first among all developed countries. Sweden boasts of one of the world’s most highly-educated workforces, with 41% of adults holding tertiary degrees compared to 28% on average across OECD member states, resulting in better outputs.

8) Denmark

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Denmark is ranked eighth in the world regarding hourly productivity, at $64.71 per hour worked. With an average annual income of $49,867, Denmark is projected to be one of the world’s most productive economies.

On average, Denmark’s workers have a high level of education and qualification, meaning they can spend less time in training and more time boosting their economy. That could explain why 75 percent of Danish employees report being very satisfied or satisfied with their job.

9) Norway????

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Norway is quite a productive country. It ranks ninth among countries in projected GDP per capita in 2022. Norway’s hourly productivity is $80.83, and its average workweek globally is 38.0 hours per week.

According to OECD data, Norway had an average annual GDP per capita of $59,906. This high productivity comes from strong labor-force participation rates. According to World Bank data, almost 77 percent of adults are employed and have above-average productivity across all sectors of industry.

10) France??????????????????????????????????????????

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France's productivity is 25% greater than the other OECD countries and the EU average. According to a recent report, France is expected to retain its status as one of Europe's top economies in 2022.

France's high productivity is due to its diverse economy, which includes manufacturing (including aerospace, automobile, and food products), services, and high-tech industries. In addition, small businesses are vital contributors to France's overall productivity.

These statistics highlight the importance of looking at productivity from a global perspective, as improvements in productivity can impact the country economically and financially.

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Conclusion

Although a handful of countries have consistently remained among world leaders, others have fallen to less competitive levels.

For businesses seeking to expand, it’s important to know where your product will be sold and which locations offer optimal opportunities for long-term success. Companies can better understand how each location aligns with their goals and objectives by evaluating a country’s cost competitiveness, trade policies, regulatory framework, and quality of life indicators.

In 2022, China and other Asian nations such as Malaysia, Indonesia, and India are projected to rise up the ranks due to their strong cost advantages over European and North American countries. In addition, they boast high productivity levels poised to grow even higher in the coming years.

To learn more about these dynamics and what might come next for business owners around the globe, subscribe to our blog.

Let us know in the comment section which country you are from.

Thanks for ding!