Do we know what is happening in the large OECD countries where labour productivity is low?
We compare levels of hourly labour productivity (per capita productivity can be skewed by labour market rules that change the number of hours worked per employee) in the United States, the United Kingdom, Germany, France, Spain, Italy and Japan across the economy as a whole and in manufacturing industry. We see that the level of labour productivity is low relative to the other countries in Japan, Spain , Italy and the United Kingdom. What explains this? A weak corporate investment effort? In the United Kingdom; Poor-quality investment (investment in new technologies)? In the United Kingdom and Italy; Low labour force skills? In Spain and Italy; The extent of labour force ageing? In Japan and Italy.