Agricultural labour productivity down by 4% in 2020

Agricultural labour productivity down by 4% in 2020

According to the latest data of economic accounts for agriculture (EAA), the index for agricultural labour productivity is estimated to have decreased in the European Union of 27 Member States (EU) in 2020 (-4%), after an increase in 2019. In addition to weather conditions, which normally affect agricultural production, this is also against the backdrop of the current pandemic.

Five larger Member States mainly behind the fall in labour productivity

Five of the large countries which contribute more than half of the EU factor income, reported decreases in the index of agricultural income per annual working unit (AWU) in 2020 compared to 2019: Romania (-47.2%), Germany (-15.5%), Poland (-9.6%), France (-7.6%) and Italy (-4.8%). On the other hand, more than half of the Member States recorded rises in 2020. The highest rates of increase were reported for Lithuania (+18.1%), Spain (+12.5%), Ireland (+11.8%) and Hungary (+10.3%).

Agricultural labour productivity (Indicator A, 2020 versus 2019)

Source dataset: aact_eaa06

The labour productivity in agricultural industry can be measured as factor income expressed per full-time labour equivalent (AWU). It is a measure of the net value added by the equivalent of each full-time worker in the agricultural industry, measured in real terms (adjusted for inflation) and expressed as an index.

Two factors influence agricultural labour productivity, described in the economic accounts of agriculture as Indicator A: the net income generated from agricultural goods and services in real terms, and the amount of work carried out in farming activities.

Agricultural labour productivity in 2020 one quarter above 2010

Compared to 2010, the index of the net real income went up by 5%, while the index of agricultural labour input in full time equivalent went down by 16%, resulting in an increase of Indicator A by 24% compared to 2010.

Agricultural labour productivity (Indicator A) and components 2010=100

Source datasets: aact_eaa05aact_eaa06 and aact_ali02

Indicator A should not be confused with total income of farming households or the income of a person working in agriculture.

For more information:

The European Union (EU) includes 27 EU Member States. The United Kingdom left the European Union on 31 January 2020. Further information is published here.

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