Labour Productivity in the Sustainable Development of Wood-based Industry: A Case for the European Union Countries

Labour productivity is one of the key factors determining the wood-based industry development and competitiveness. This study assessed the importance of human resources and labour productivity in the furniture sector in the European Union (EU) countries. A cluster analysis and multivariate linear ordering analysis were conducted. The EU15, especially Germany, Denmark, and United Kingdom, demonstrate a higher labour productivity and offer even four-fold higher wages to the employees than some EU13 countries. It results in a relatively high share of labour costs in the production. However, in some countries of Central and Eastern Europe, the importance of furniture production for the national economy and the job market was high. To maintain the sustainable development of the EU market, decreasing the regional differences is essential. Additionally, the existing competitive advantage of selected EU13 countries resulting from relatively low labour costs can be insufficient to maintain the current rate of production growth and furniture exports. The results of the study provide a precious source of information for entrepreneurs, managers, and government. They will help the production enterprises identify the areas to be made more efficient by taking important decisions to enhance competitiveness and design the future path of sustainable furniture sector development.