Report: U.S. Workers Are Most Productive

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The New York Sun

GENEVA — American workers stay longer in the office, at the factory, or on the farm than their counterparts in Europe and most other rich nations, and they produce more per person over the year.

They also get more done an hour than everyone but the Norwegians, according to a U.N. report released yesterday, which said America “leads the world in labor productivity.”

The average American worker produces $63,885 of wealth a year, more than their counterparts in all other countries, the International Labor Organization said in its report. Ireland comes in second at $55,986, followed by Luxembourg at $55,641, Belgium at $55,235, and France at $54,609. The productivity figure is found by dividing the country’s gross domestic product by the number of people employed. The U.N. report is based on 2006 figures for many countries, or the most recent available.

Only part of the American productivity growth, which has outpaced that of many other developed economies, can be explained by the longer hours Americans are putting in, the ILO said.

America, according to the report, also beats all 27 nations in the European Union, Japan, and Switzerland in the amount of wealth created an hour of work — a second key measure of productivity.

Norway, which is not an E.U. member, generates the most output per working hour, $37.99, a figure inflated by the country’s billions of dollars in oil exports and high prices for goods at home. America is second at $35.63, about a half dollar ahead of third-place France.

Seven years ago, French workers produced over a dollar more on average than their American counterparts. The country led America in hourly productivity between 1994 and 2003.

The American employee put in an average 1,804 hours of work in 2006, the report said. That compared with 1,407.1 hours for the Norwegian worker and 1,564.4 for the French.

It pales, however, in comparison with the annual hours worked per person in Asia, where seven economies — South Korea, Bangladesh, Sri Lanka, Hong Kong, China, Malaysia, and Thailand — surpassed 2,200 average hours per worker. But those countries had lower productivity rates.

America’s increased productivity “has to do with the ICT [information and communication technologies] revolution, with the way the U.S.organizes companies, with the high level of competition in the country, with the extension of trade and investment abroad,” said Jose Manuel Salazar, the ILO’s head of employment.

The ILO report warned that the widening of the gap between leaders such as America and poorer nations has been even more dramatic. Laborers from regions such as Southeast Asia, Latin America, and the Middle East have the potential to create more wealth but are being held back by a lack of investment in training, equipment, and technology, the agency said. In sub-Saharan Africa, workers are only about one-twelfth as productive as those in developed countries, the report said.

“The huge gap in productivity and wealth is cause for great concern,” ILO Director-General Juan Somavia said, adding that it was important to raise productivity levels of the lowest-paid workers in the world’s poorest countries.


The New York Sun

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