The first preliminary data for 2023 from the economic accounts for agriculture (EAA) reveals a concerning 6.6% year-on-year decrease in the index of agricultural labour productivity in the European Union. This decline is primarily attributed to a 7.9% decrease in the real value of the income generated by units engaged in agricultural production activities (factor income) and a further reduction (-1.4%) in the volume of agricultural labour.
According to Eurostat’s data, 19 EU countries experienced a decline in agricultural labour productivity in 2023. Among these, Estonia, Sweden, Ireland, Lithuania, and Bulgaria saw the steepest rates of downturn. However, 7 EU countries witnessed higher levels of agricultural labour productivity, with Belgium showing the most significant increase at 31.0%.
The gross value added by the EU’s agricultural industry remained relatively stable in 2023, with a marginal increase of 0.9%. This reflects unchanged prices for output and intermediate consumption, coupled with only slight decreases in output and intermediate consumption volumes.
Despite the 2023 downturn, the EU’s agricultural labour productivity remained 35% higher than in 2015. The income generated was shared among a smaller workforce, resulting in a decline of 18.2% in the index of agricultural labour input over the same period. This indicates that EU agricultural labour productivity was 34.6% higher in 2023 than in 2015, despite the year’s estimated downturn.
It’s essential to note that all data provided are estimates. Furthermore, the labour productivity of the agricultural industry should not be confused with the total income of farming households or the income of individuals working in agriculture.
This initial analysis of the 2023 EAA data provides valuable insights. It will be crucial to monitor the revisions and final publication of the 2023 EAA on 15 May 2024 to gain a comprehensive understanding of the trends and factors affecting agricultural labour productivity in the EU.
The Business Press 