Which are the most productive nations in the world? Any answer will depend on how productivity is defined and which economic factors are deemed to be important.
The world’s most productive country is Luxembourg with the highest exceptional rate of productivity per working hour, based on the criteria adopted in a recent survey. All three Nordic nations in the top 10 — Norway, Denmark, and Sweden — stand out for their shorter average workweeks.
These insights are provided from a recent study by the company Eskimoz, which proceeded to rank the world’s top ten most productive countries by analysing GDP per working hour. This is considered by some economists to be a more precise measure of labour efficiency than GDP per capita alone.
The study selected the 50 countries with the highest GDP per capita (INT$) in 2022 and calculated yearly working hours based on average weekly hours.
Worker productivity was then determined by dividing GDP per capita by yearly working hours. While not factored into productivity calculations, unemployment rates were included for additional context on labour market conditions.
The top ten were found to be:
- Luxembourg
- Ireland
- Norway
- Singapore
- Netherlands
- Switzerland
- Denmark
- Sweden
- Austria
- Qatar
Luxembourg dominates the global rankings, creating $86.4 of value in every hour of work, making it the world’s most productive country. The country has the highest GDP per capita ($137.9K) among the listed countries with a moderate workweek of 30.7 hours, demonstrating that shorter working hours can lead to increased productivity.
Ireland ranks 2nd with $70.8 per working hour, about 18% lower than Luxembourg despite having the third-highest GDP per capita among the top 10. The nation maintains similar working hours to Luxembourg but achieves different productivity levels, highlighting the impact of industry composition on output.
Norway claims third place with $61.7 produced in each hour of work. The Nordic nation achieves this with the third-shortest workweek (27.1 hours) among the top 10, showcasing the effectiveness of its work-life balance approach.
Singapore’s performance places it fourth, producing $50.7 for every hour worked. Despite having the second-highest GDP per capita ($118.8K) in the top 10, its longer workweek of 45.1 hours affects its hourly productivity ranking. The nation maintains one of the lowest unemployment rates at 1.9%.
The Netherlands takes fifth position, generating $48.8 in each hour of labor. With the shortest workweek among all ranked nations at 26.7 hours, it achieves almost the same hourly output as Singapore despite having less than two-thirds of Singapore’s GDP per capita.
Switzerland’s output of $46 for each hour worked earns it sixth place. Its high-value industries and skilled workforce contribute to a strong GDP per capita ($81.6K). Denmark stands at seventh, creating $45.6/hour. Compared to Switzerland, it maintains similar productivity levels.
The Swedish economy registers eighth place with $41.7 produced every hour. While it maintains working hours close to Denmark’s 29.5 hours, its hourly output is $4 lower. Austria’s productivity metrics put it in ninth place at $41.5 per working hour. It maintains strong productivity through a balanced 29.4-hour workweek. Rounding out the top ten, Qatar generates $40.9 in each working hour.
Despite having one of the highest GDP per capita among Gulf nations ($102.5K) and lowest unemployment (0.1%), it has the longest workweek which impacts its hourly productivity ranking.
