Labor productivity increased by 0.9% in the EU in the second quarter, but Romania recorded the sharpest decline per hour worked

Labour productivity in the European Union accelerated its growth in the second quarter of 2026, advancing by 0.9% based on the number of employed persons and by 0.8% based on hours worked compared with the same period of the previous year. Romania moved in the opposite direction, with a decline of 0.8% per employed person and 1.2% per hour worked, the latter being the largest reduction recorded among EU countries.

In brief Labour productivity in the EU increased by 0.9% per employed person and by 0.8% per hour worked in the second quarter of 2026 compared with the same period in 2025. The pace was higher than in the first quarter, when productivity had increased by 0.4% according to both calculation methods. Slovenia recorded the largest increase per employed person, at 4.5%, followed by Denmark, at 3.6%, and Lithuania, at 3.5%. Romania recorded a decline of 0.8% per employed person and 1.2% per hour worked, the largest reduction in the EU according to the latter indicator. Only Ireland, Romania and Italy saw declines in productivity calculated per employed person, while declines per hour worked were reported in five member states.

Labour productivity continued to improve in the European Union in spring 2026, and the growth rate was stronger than at the beginning of the year. In the second quarter, real output generated by each employed person was 0.9% higher than in the same period of 2025, while output per hour worked increased by 0.8%.

In the first quarter, both productivity measures had increased by 0.4% year on year, meaning that growth accelerated during the April-June period.

Eurostat calculates labour productivity by combining data on gross domestic product with data on employment. The indicator shows how much real output is generated either by each employed person or per hour worked.

The two measures may develop differently because the number of people working and the total volume of hours worked do not always change at the same pace. The per-hour calculation therefore provides an image of the volume of output produced for the time actually worked, while the per-employed-person calculation relates output to the total number of people working.

Productivity growth was widespread across most of the Union, but differences between countries remained significant.

Slovenia recorded the largest increase in productivity calculated per employed person, at 4.5% compared with the second quarter of 2025. Denmark followed with growth of 3.6%, and Lithuania with 3.5%.

At the other end of the ranking, only three member states recorded a decline according to this indicator. Ireland saw a reduction of 1%, Romania of 0.8%, and Italy of 0.4%.

Romania’s situation is even weaker when productivity is measured against hours actually worked. Eurostat indicates a decline of 1.2%, the largest among all member states for which declines were reported.

Czechia recorded the second-largest reduction, at 0.8%, followed by Portugal with a decline of 0.5%. Ireland, although it had recorded a decrease when productivity was measured by the number of employed persons, remained stable in the calculation based on hours worked.

Overall, productivity per hour worked declined in five member states.

Slovenia also had the best performance in this ranking. Productivity per hour worked increased by 5.8% compared with the second quarter of 2025, the strongest growth in the EU.

Denmark recorded an increase of 3.5%, while Latvia recorded 3.4%.

The differences between the two rankings also appear in the case of Lithuania and Latvia. Lithuania is among the top three countries when productivity is calculated per employed person, while Latvia enters the top three when the indicator is measured against hours worked.

For Romania, however, the two methods show the same direction: real output measured both by the number of employed persons and by the time actually worked was lower than in the same period of the previous year.

Eurostat’s data do not explain in this publication the causes of the differences between countries and do not separate the contribution of different economic sectors to productivity trends. They do show, however, that while the EU average continued to improve, national results remained very different.

Labour productivity is one of the indicators used to measure the efficiency with which an economy transforms labour into output. Productivity growth can enable the economy to produce more without a proportional increase in the number of employees or in time worked.

Eurostat monitors the indicator both per employed person and per hour worked, using data on real GDP and employment.

In the second quarter of 2026, both measures indicated an acceleration at Union level compared with the first quarter, but Romania remained among the few economies where productivity declined compared with the previous year.