The average amount of economic output produced per job and per hour worked in Scotland
Labour productivity measures the amount of economic output that is produced, on average, by each unit of labour input, and is an important indicator of economic performance. Labour productivity statistics for Scotland are produced by the Scottish Government and have been designated as Official Statistics.
Labour productivity is a derived statistic which means that it is not directly estimated, but is based on separate estimates for economic output and labour input. It is calculated by dividing a measure of output (gross value added, GVA) by a measure of input (number of jobs or total number of hours worked). An increase in GVA or a decrease in jobs/hours contributes toward an increase in labour productivity whilst a decrease in GVA or an increase in jobs/hours contributes toward a decrease.
Labour input is measured in terms of the number of jobs in the economy (giving a measure of output per job), and also the total number of hours worked (giving output per hour worked). Output per hour worked is usually viewed as the most comprehensive indicator of whole economy labour productivity and taken as the headline measure. Output statistics (gross value added, GVA) are sourced from Scottish Government quarterly national accounts statistics. Labour input measures (number of jobs filled and number of hours worked) are consistent with the quarterly NUTS1 results for countries and regions published by the Office for National Statistics (ONS).
The two measures of quarterly labour productivity growth in this dataset, detailed below, are calculated using a trend-based estimate of productivity which removes irregular volatility from the series, as well as recurring seasonal features. After removal of the irregular component from the quarterly series, the average of the four quarterly indices in a year does not equate to the annual index. For data relating to annual (calendar year) labour productivity, see the Labour Productivity: Annual dataset. Local Authority
• q-on-q year ago is the percentage change (growth rate) over the year, comparing the latest quarter to the same quarter of the previous year. This growth rate is usually taken as the headline measure of quarterly labour productivity growth.
• q-on-q is the percentage change (growth rate) for the latest quarter compared to the previous quarter. This can be used to identify underlying short term changes in a more timely way than the q-on-q year ago measure.
The productivity measures are in real terms (adjusted for inflation) and are suitable for analysis of changes in performance over time. The seasonally adjusted and trend based series are indexed to a reference year (2007=100) in order to focus on movements in labour productivity since the onset of recession in 2008. An index value of more than 100 means that productivity is higher than in the reference year, and a value of less than 100 means that output is lower than in the reference year.
The indices are rounded to 4 decimal places and the growth rate measures are rounded to 1 decimal place. It is not always possible to replicate the published growth rates using rounded data, but all results are also available unrounded in the downloadable spreadsheets from the latest publication.
Further information about these statistics and the methods used to produce them is available in the background notes of the latest statistical bulletin and in the accompanying methodology document.
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