This derived indicator compares remuneration (compensation per employee in current prices) and productivity (gross domestic product (GDP) in volumes per employment) to show how the remuneration of employees is related to the productivity of their labour. It is the relationship between how much each "worker" is paid and the value he/she produces by their work. Its growth rate is intended to give an impression of the dynamics of the participation of the production factor labour in output value created. Please note that the variables used in the numerator (compensation, employees) refer to employed labour only, while those in the denominator (GDP, employment) refer to all labour, including self-employed.
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Eurostat, the statistical office of the European Union
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