This is an archive article published on December 23, 2024

Top 10 countries with the highest labour productivity by GDP per hour: Where does India stand globally?

List of countries by labour productivity: In a notable mention, nine of the top ten most productive countries in the world, based on GDP per hour, are in Europe, with one Asian country being the only exception.

Top 10 Countries with the Highest Labour Productivity by GDP Per Hour in 2024:

3 min readDec 24, 2024 08:05 AM IST First published on: Dec 23, 2024 at 02:51 PM IST

Top 10 countries with the highest labour productivity: Over the years, workplaces and their cultures around the world have evolved dramatically, with an increasing emphasis on work-life balance and adopting significantly reduced working hours.

While working hours have decreased in several nations—especially among the wealthiest—significant disparities still exist within countries.

Contrary to popular belief, longer working hours do not always lead to higher or better outputs and productivity; in fact, the opposite is often true.

Must Read | Top 10 countries with the longest and shortest work hours 2024: Know where does India stand

Gallup’s statistics on employee burnout indicate that the number of hours worked each week is significant, with the risk of burnout increasing significantly when employees exceed 50 hours and rising further after 60 hours.

The International Labour Organisation has ranked countries based on their labour productivity, defined as the amount of production (measured as GDP) generated per unit of labour (hours worked) during a specific period—a key economic indicator that is directly related to the economy’s growth, competitiveness, and living standards.

Top 10 countries with the highest labour productivity by GDP per hour, as of 2023-24

European countries are recognized for their healthy workplace culture, with the EU also enforcing strong worker protections and mandates a significant amount of paid time off, which can enhance work-life balance and overall productivity.

Also Read | Top 10 countries with the longest and shortest work hours 2024: Know where does India stand

Notably, nine of the top ten most productive countries, based on GDP per hour, are in Europe, with Singapore being the only exception.

According to the OECD, nations with higher productivity have shorter average working hours, leading to higher productivity per hour compared to countries with longer working hours.

Here are the top 10 most productive nations by GDP per hour, as of ILO’s Statistics of Labour Productivity of 2023-24:

Rank	Country	Region	International $
1	Luxembourg	Europe	$146
2	Ireland	Europe	$143
3	Norway	Europe	$93
4	Netherlands	Europe	$92
5	Denmark	Europe	$80
6	Switzerland	Europe	$78
7	Belgium	Europe	$76
8	Austria	Europe	$74
9	Singapore	Asia	$74
10	Sweden	Europe	$70

Source: International Labour Organization

Please note: The figures are measured in international dollars (Int$), a fictitious currency used to compare the buying power of various nations after accounting for price disparities.

Last update: 15 January, 2024

Where does India stand globally?

According to CEIC Data, India’s labour productivity experienced a decline of 2.38% year-over-year in December 2022, following a growth of 3.99% in the previous year.

Despite Indian workers averaging 47.7 working hours per week—among the highest globally—this has not translated into higher productivity.

According to the International Labour Organization (ILO), India’s labour productivity is relatively low compared to global standards.

Its GDP per working hour was estimated at $8, placing it at the 133rd position with lower productivity levels as of 2023.

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Cherry Gupta