Many African nations rank poorly in global labour productivity metrics, with most countries taking the bottom 10 position worldwide according to the latest data on labour productivity released by the International Labour Organization (ILO).
Labour productivity measures the amount of economic output (GDP) generated per unit of labour (employment or hours worked) over a specific time period.
In simpler terms, labour productivity is the monetary value each worker contributes to the total economic output and one recurring factor responsible for the declining labour productivity is the poor level of human capital development in the continent.
Globally, Luxembourg leads in labour productivity, with a value of $146 per hour worked, far surpassing Nigeria’s productivity rate of $6.8 per hour worked.
The productivity gap between countries is stark, with the top 10 global countries producing a value of between $146 and $74 per hour, compared to the top 10 African countries, which produce between $30 and $16 per hour. This significant disparity highlights the vast differences in productivity levels worldwide.
An analysis carried out by Dataphyte showed an 89% correlation between labour productivity and GDP per capita. This suggests that as labour productivity decreased, sectoral output per capita also diminished across the economy.
The drop in the productivity of the African labour force has been linked to a decline in key drivers of innovation and economic growth and the resultant effects in critical sectors, which include manufacturing, agriculture, the service sector, and others.
“The weakening of these sectors reduces the economy’s capacity to generate higher output, while poor investment in education and skills limits the workforce’s ability to adapt to new technologies and more efficient production processes” the Dataphyte report added.
The list, sourced from the international Labour Organization and analyzed by Dataphyte shows the top 10 African countries with the highest labour productivity;
| Rank | Country | Output/hour $ |
|---|---|---|
|
1 |
Libya |
30 |
|
2 |
Gabon |
26 |
|
3 |
Botswana |
21 |
|
4 |
South Africa |
21 |
|
5 |
Egypt |
20 |
|
6 |
Eq. Guinea |
20 |
|
7 |
Djibouti |
20 |
|
8 |
Algeria |
19 |
|
9 |
Tunisia |
16 |
|
10 |
Eswatini |
16 |
On the continental level, Nigeria ranks 16th, falling far below Libya, which has the most productive labour force in Africa. Its output per hour worked stood at $30.
Similar to Nigeria’s low labour productivity, other African countries in this bottom rank include Burundi, the Central African Republic, Liberia, Niger, Madagascar, the Democratic Republic of Congo, Mozambique, Eritrea, Sierra Leone, Chad, and Lesotho.
The World Bank’s Boosting Productivity in Sub-Saharan Africa report has called for a comprehensive agenda to boost worker output in Africa. The report rallied governments to direct resources to the most productive firms in the sectors that hold the most promise for the continent as a means to boost Africa’s productivity.
