The measurement of productivity is important because it allows to quantify the contribution in the production of a product from the "factors of production as primary (labour and capital) and the "total factor productivity".
In particular, the ISTAT stresses that the "total factor productivity" to measure the effects of technical progress and other factors that encourage economic growth (innovations in the production process, the improvements in the organization of work and managerial techniques, improvements in experience and in level of education reached by the workforce…).
Between 1995 and 2015, the labour productivity, measured as value added per hour worked – has grown an average of 0.3% per year (in the EU the average annual growth was 1.6%), thanks to increases in the average of value added (+0.5%) and hours worked (+0,2%).
Down in the detail, it turns out that between 2003 and 2013 labour productivity has increased on average of 0.2% a year, in an economic context characterized by a tendency to the descent of the added value (-0,3%) and hours worked (down 0.5%).
The mayor also notes that – thanks to an increase in the value added (+0.2%) and a reduction of the hours worked (-0,2%) – labour productivity grew by 0.4% in 2014, but then start to decrease (unique case in Europe) the next year (-0,3%).
In the period from 1995 to 2015, the productivity of capital – that is, the relation between the value added and the input of capital – has decreased an average of 0.9% per year. ISTAT explained that the decline is due to an increase in the input of capital (+1,5%) higher than that of the value added (+0,5%).
Also in this case, the ISTAT makes a distinction between the period between 2003 and 2013, during which the capital productivity has declined on average for the year of 1.1%, and the two-year period 2014-2015, during which – thanks to a "significant contraction" in the input of capital was 1.3% and 1.0%) and a simultaneous increase in the value added (+0.2% and +0.9%), and – the productivity of capital grew in both years (+1.5 and +1,9%).
Finally, total factor productivity, calculated as the ratio between the volume index of value added and the volume index of primary factors (labour and capital).
Between 1995 and 2015, the total factor productivity has experienced a contraction in annual average of 0.1%, due to an average increase of 0.5% of value added and 0.6% of the total use of capital and labour.
In particular, the total factor productivity has grown so much during the recession (+0,8% on average per annum in the period 2009-2013), as in the two-year period 2014-2015 (+0.7% and +0,4%).
The ISTAT notes that, in addition to representing a trend reversal compared to previous periods, this growth was mainly due to an improvement of the efficiency of production processes.
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