Trends in Labour Productivity in the European Union's Agriculture

The paper analyzed labour productivity in the EU agriculture taking into consideration gross value added and labour input based on Eurostat Database for the period 2009-2018. Descriptive statistics for labour productivity (mean, standard deviation, variation coefficient) were established at the EU and country level. Regressions and correlations between labour input and agricultural output, gross value added and productivity as well as between labor productivity and agricultural production and gross value added were also determined. Labour input declined by 17.5%, agricultural output increased by 25.4 % and gross value added by 34.2 % having a positive impact on labour productivity which in 2018 was by 62.7 % higher than in 2009. The top productivity is registered by Netherlands, while the lowest one by Latvia, but also Romania and Poland. The discrepancies between the highest and the lowest productivity reflect a convergence of inequalities among the EU states mainly since 2015 till present. Netherlands, Denmark, Belgium, France, United Kingdom, Germany, Luxemburg, Spain, Italy, Sweden and Austria are the countries with the highest labour productivity in agriculture and the only ones which exceeds the EU average. The decrease of labour input as well as the improvement of technological level and labour force training are the key factors to grow productivity, agricultural output and GVA.