LABOR PRODUCTIVITY INCREASED IN MADEIRA IN 2016

Labor productivity “remained unchanged” in 2016 in Portugal, but presented “differentiated behaviors” at the regional level, according to data released by the National Institute of Statistics (INE).
“With the exception of the Lisbon and Alentejo Metropolitan Area, there were increases in productivity in the other regions, with the most significant being in the Autonomous Region of Madeira (1.8%), the Autonomous Region of the Azores (1.7%) and the Center (1.4%), “reads the INE document that presents the regional accounts.
The increase in productivity in Madeira, the Azores and in the Center resulted from the real increase in Gross Value Added (GVA), accompanied by a “almost zero” variation in employment.
As a result of the productivity growth differential in relation to the average annual remuneration, INE indicates that the labor cost per unit produced (CTUP) “increased in all regions”, with the exception of the Autonomous Region of Madeira.
“The decrease of CTUP (-0.3%) in Madeira was due to the sharp increase in productivity (1.8%) compared to the average annual remuneration (1.5%),” reads the document .
Conversely, according to the INE, the Alentejo showed the highest variation in the CTUP (3.8%), due to the decrease in productivity (-1.8%), mainly associated with the decrease in real terms of the GVA of the production of coke and petroleum products compared to the increase in average annual remuneration (1.9%).