Baltic Sea Region Territorial Monitoring System

GDP per person employed

Indicator definition

This indicator is defined as the Gross Domestic Product in Purchasing Power Standards per person employed.

Indicator importance

This is an indicator of labour productivity indicating how much output a given number of employees / workers are producing. For measuring regional production, it alleviates the measurement problem of commuting of the classical indicator GDP per capita, and thus provides a more truthful picture of regional productivity than GDP per capita does.

Findings

Preservation of a large east-west divide in two aspects can be detected for this indicator:

Firstly, in Finland, Denmark, Norway and Sweden, representing the typical west, the productivity levels are generally much higher than in the Baltic States, Poland, Russia and Belarus. As a rule of thumb, the farther east a region is located, the lower its productivity is, resulting in lowest figures for Belarus and parts of Russia. For Russia, only the greater St. Petersburg area reach productivity levels similar to those in Western Poland.

Secondly, within the countries, a divide between capital regions (and some more regions including strong cities in Poland) and other regions is much larger in the east than in the west. German section of BSR, due to its former East Germany part, is not fully converged with the west yet but is already more similar to the west than to the BSR east, with Berlin and Hamburg as outstanding agglomerations.

Looking at the whole of Europe, this east-west divide observation is reinforced by the ex-tremely low figures for Bulgaria and Romania, marking the lower end of the spectrum of GDP per employee in the European Union, while Benelux countries, France and the UK generally have high productivity levels. Czech Republic, Hungary, Slovakia and Slovenia represent countries in transition, with GDP per employees between 30 and 40,000 Euros in 2009. The Mediterranean countries (Portugal, Greece) yield a mixed picture, with some rather rich regions, contrasted by many poor regions.