Top 10 Countries by Labor Productivity
Top 10 Countries by Labor Productivity (GDP per Employed Person, PPP, 2025)
OECD and CEOWorld 2025 estimate the following leading economies by output per employed person (PPP, international dollars).
| # | Country | GDP per Employed (PPP Int $ Thousands) | YoY Growth % | Source |
|---|---|---|---|---|
| 1 | Ireland | ≈ 250 | +2.8 % | OECD / CEOWorld 2025 |
| 2 | Luxembourg | ≈ 225 | +2.5 % | OECD Productivity Indicators 2025 |
| 3 | Norway | ≈ 180 | +2.2 % | OECD 2025 |
| 4 | Switzerland | ≈ 175 | +2.1 % | CEOWorld 2025 |
| 5 | United States | ≈ 170 | +1.9 % | U.S. BLS / OECD |
| 6 | Denmark | ≈ 160 | +1.8 % | OECD 2025 |
| 7 | Singapore | ≈ 158 | +3.1 % | World Bank / IMF PPP |
| 8 | Netherlands | ≈ 155 | +1.6 % | OECD 2025 |
| 9 | Australia | ≈ 150 | +2.4 % | OECD / IMF |
| 10 | Sweden | ≈ 148 | +1.9 % | OECD 2025 |
* Values in thousands of international (PPP-adjusted) dollars per employed person. Growth rates represent year-over-year changes 2024 → 2025.
Labor Productivity Ranking (Top 10 Countries, PPP $ Thousands per Employed, 2025)
Values are in thousands of PPP-adjusted international dollars per employed person (2025 projection). Ireland leads the OECD productivity frontier.
Drivers of Labor Productivity and the Role of TFP in 2025
Labor productivity (GDP per employed person or per hour) captures how effectively an economy uses its workforce to create value. The countries above represent the current frontier of output efficiency, supported by high technology penetration and sophisticated capital structures.
- Capital deepening: In advanced economies, each worker operates more capital assets — machines, automation, ICT — raising output per person.
- Technological innovation: Digitalization, AI deployment, and efficient energy use expand output without proportionate labor increase.
- Human capital quality: Education and training are crucial — countries with skilled labor adapt faster to technology shifts.
- Institutional and TFP factors: Total Factor Productivity reflects how capital and labor combine efficiently; strong institutions boost it through innovation and competition.
- Sectoral composition: High-value sectors (finance, pharma, IT) lift average productivity even with stable employment levels.
OECD and World Bank data for 2025 show that TFP growth in most developed economies averages 1–2 % annually, while developing countries still achieve 3–4 % as they catch up through technology diffusion. The gap between top and median nations remains wide but slowly narrows as knowledge transfers intensify.
Sustaining productivity growth requires not only more capital but better use of inputs — the essence of TFP. Policies should focus on innovation ecosystems, R&D tax credits, and cross-border collaboration to spread technology and skills. Long-term labor productivity improvement remains the main driver of real wage growth and living standards worldwide.
