Title page 1

Contents 5

Foreword 4

Executive Summary 8

1. Productivity growth in a challenging global environment 10

Introduction 10

OECD labour productivity grew against backdrop of elevated uncertainty 11

Productivity growth differed across countries in 2024 14

References 23

2. Labour productivity in OECD economies: Recent trends and shifting drivers of growth 27

Introduction 27

Labour productivity levels in 2024 28

Long-run labour productivity trends 31

Labour productivity and GDP growth 33

References 35

3. Investment 37

Introduction 37

Investment rates across OECD countries 39

Industry contributions to changes in the aggregate investment rate 41

Investment rate changes by asset type 43

References 48

4. Productivity patterns across industries 50

Introduction 50

Industry-level labour productivity developments 51

Industry contributions to aggregate labour productivity growth 56

Multifactor productivity across industries 65

References 74

Note 77

5. Labour productivity patterns across firm sizes 78

Introduction 78

Economy-wide patterns in labour productivity by firm size 79

Diverging patterns of productivity gaps across economic activities 81

Productivity differences across subnational regions 86

References 88

6. Environmentally Adjusted Multifactor Productivity 90

Introduction 90

OECD estimates of EAMFP for the total economy 92

Interpretation, caveats and ways forward 96

Implications of the 2025 SNA for EAMFP indicators 97

References 98

Note 99

Table 3.1. Fixed capital asset breakdown: SNA 2008 and SNA 2025 38

Figure 1.1. Labour productivity developments since 1995 14

Figure 1.2. Labour productivity growth in 2024 15

Figure 1.3. Contributions to labour productivity growth: European Union versus United States 16

Figure 1.4. Preliminary data: Labour productivity developments in 2025 17

Figure 1.5. Labour productivity growth in selected industries, 2025 19

Figure 2.1. Labour productivity levels across OECD countries in 2024 or latest available year 28

Figure 2.2. Labour productivity growth across OECD countries in 2024 29

Figure 2.3. Labour productivity levels across OECD countries, 1995-2024 31

Figure 2.4. Information and communication as well as business services activities value added 33

Figure 2.5. Contributions to GDP growth 34

Figure 3.1. Investment rates across OECD countries 40

Figure 3.2. OECD weighted average investment rate 41

Figure 3.3. Industry contributions to changes in the investment rate 42

Figure 3.4. Changes in investment rates by asset type 44

Figure 3.5. ICT investment rates, 2010-24 45

Figure 3.6. ICT investment rates by asset type 46

Figure 3.7. R&D investment rates across OECD countries 47

Figure 4.1. Cross-country dispersion of labour productivity growth by industry, 2024 52

Figure 4.2. Pharmaceutical labour productivity growth (ISIC C21), 2023 and 2024 53

Figure 4.3. Change in industry shares, OECD average, 2019 to 2024 54

Figure 4.4. Decomposition of aggregate labour productivity growth, 2023-24 57

Figure 4.5. Industry contributions to the within-industry effect, 2023-24 58

Figure 4.6. Within-industry effect of manufacturing, 2023-24 59

Figure 4.7. Within-industry effect of information and communication, 2023-24 60

Figure 4.8. Industry contribution to the between-industry effect, 2023-24 62

Figure 4.9. Between-industry effect in manufacturing, 2023-24 63

Figure 4.10. Between-industry effect in information and communication, 2023-24 64

Figure 4.11. Contributions to labour productivity growth 65

Figure 4.12. MFP growth in the total economy, 2023-24 67

Figure 4.13. MFP growth in selected industries relative to the total economy, 2023-24 68

Figure 4.14. Contribution of MFP in labour productivity growth in selected industries, 2023-24 70

Figure 4.15. Dispersion of MFP growth in selected industries since 2000 71

Figure 4.16. Development of MFP over time in selected industries 73

Figure 5.1. Labour productivity of SMEs relative to large firms in the business sector 80

Figure 5.2. Labour productivity of SMEs over large firms across economic activities, 2024 82

Figure 5.3. Labour productivity of SMEs relative to large firms, 2024 83

Figure 5.4. Labour productivity across and withing size groups 85

Figure 5.5. Firms in less and more developed regions in Italy and Spain see similar productivity gaps across size classes 87

Figure 6.1. EAMFP as a share of output growth in OECD countries in Key Partner economies 92

Figure 6.2. Augmented growth accounting for pollution-adjusted output 93

Figure 6.3. Share of output growth attributable to EAMFP growth 94

Figure 6.4. Pollution adjusted GDP and GDP growth 95

Figure 6.5. Contribution of renewable and non-renewable resources extraction to growth 96

Boxes 7

Box 1.1. Recent evidence on the link between AI and productivity and measurement challenges 12

Box 2.1. Measurement challenges related to the activities of multinational enterprises 30

Box 2.2. Structural Analysis Database (STAN) 32

Box 3.1. Measurement of investment and asset classification in the System of National Accounts 38

Box 4.1. Measuring labour productivity in services: Why sectoral context matters 55

Box 4.2. Interpreting Multifactor Productivity: What it measures and what it misses 66

Box 5.1. Challenges in measuring productivity by firm size 80

Box 5.2. Productivity heterogeneity within size classes drives most of the variance of productivity within industries 84

Box 6.1. Measuring EAMFP: Methodology, assumptions and measurement challenges 93