{"id":579671,"date":"2022-11-13T13:32:56","date_gmt":"2022-11-13T13:32:56","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/11\/13\/productivity-is-slumping-in-several-countries-but-for-vastly-different-reasons\/"},"modified":"2022-11-13T13:32:56","modified_gmt":"2022-11-13T13:32:56","slug":"productivity-is-slumping-in-several-countries-but-for-vastly-different-reasons","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/11\/13\/productivity-is-slumping-in-several-countries-but-for-vastly-different-reasons\/","title":{"rendered":"Productivity is slumping in several countries, but for vastly different reasons"},"content":{"rendered":"

<\/a> Worker productivity is at different levels around the world:<\/strong> In the US, productivity is slumping after witnessing a surge during pandemic lockdowns, although there remains no consensus thus far as to why this is occurring. Meanwhile, in a vastly different economic climate in India, productivity has yet to recover from a dip caused by the pandemic, but relatively lower levels of tech integrations and bad management practices have been identified as two main factors behind the initial plunge.<\/p>\n

The jury\u2019s still out on why employees in the US <\/strong>have become less productive:<\/strong> In the first half of the year, productivity \u2014 the measure of how much output employees can produce per hour \u2014 plummeted by the sharpest rate ever recorded in more than 70 years, the Washington Post<\/a> reports, citing data from the Bureau of Labor Statistics<\/a>. The decline in productivity is puzzling as it follows a surge in productivity to levels not witnessed in decades after pandemic-induced lockdowns forced an immediate shift to remote work, prompting some economists to suppose that the pandemic may spur longer-term growth.<\/p>\n

While productivity is high in the manufacturing industry, it\u2019s on the decline among white collar occupations<\/strong>, according to an economics professor at Dartmouth College, although knowledge workers\u2019 contributions are harder to quantify, making it more difficult to measure their productivity.<\/p>\n

Employees have argued that flexibility aids their efficiency, raising new questions regarding the transition to hybrid models and remote work.<\/strong> This also coincides with a time when quiet quitting has grown increasingly popular, particularly among younger employees, leading to some speculation<\/a> that it is behind the drop. While the term \u201cquiet quitting\u201d may have recently been added to our lexicon, the practice itself is not new, so it is unlikely to be behind the drop in productivity in the US, Business Insider<\/a> suggests.<\/p>\n

Productivity is also down in India \u2014 but on a different trajectory: <\/strong>Data from the Centre for Monitoring Indian Economy<\/a> (CMIE) indicates that revenue per employee (RPE) \u2014 which is used as a proxy for productivity \u2014 fell in 2020 during the pandemic. The fall was expected, but what wasn\u2019t anticipated is the decline carrying through in 2021 even though the country\u2019s real GDP grew at an 8% clip, The Print<\/a>reports. Average RPE fell between 2019-2021 across the wholesale, manufacturing, construction and retail sectors, with the most prominent decline in the manufacturing sector (28%), in stark contrast to the trend in the US.<\/p>\n

What\u2019s behind India\u2019s drop in productivity?<\/strong> Poor management practices could be a factor, suggests a report<\/a> published in Harvard University\u2019s Quarterly Journal of Economics, which looks into whether differences in management practices across firms can explain differences in productivity. The study, which compared management practices at large Indian textile firms, found that adopting better management practices raised productivity by 17% in the first year compared with control group firms that did not change their practices.<\/p>\n

Relative lack of technology is another factor:<\/strong> A 2018 report<\/a>, published in the American Economic Journal, demonstrates that low-income nations had lower productivity compared to high-income countries not because they did not adopt key technologies, but because they utilize these technologies at a lower intensity, relative to countries with high incomes. An Organization for Economic Co-operation and Development (OECD) report<\/a> explains that digital technologies fall short in counteracting a decline in productivity due to the fact that they go hand-in-hand intangible assets, such as ICT-related competencies, organizational capital and data and software, which are sometimes difficult and expensive to obtain.<\/p>\n","protected":false},"excerpt":{"rendered":"

Worker productivity is at different levels around the world: In the US, productivity is slumping after witnessing a surge during pandemic lockdowns, although there remains no consensus thus far as to why this is occurring. Meanwhile, in a vastly different economic climate in India, productivity has yet to recover from a dip caused by the […]<\/p>\n","protected":false},"author":1,"featured_media":579672,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[633,1404,117],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-579671","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-enterprisepm","tag-india","tag-us","wpautop","entry"],"acf":{"mongo_id":"a10ac28d-9653-4f5d-ab0f-1233cf48baab","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2022\/11\/635.jpg","photo_position":"above","related_issue":[579656],"teaser":"","voice_url":""},"yoast_head":"\nProductivity is slumping in several countries, but for vastly different reasons - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2022\/11\/13\/productivity-is-slumping-in-several-countries-but-for-vastly-different-reasons\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Productivity is slumping in several countries, but for vastly different reasons\" \/>\n<meta property=\"og:description\" content=\"Worker productivity is at different levels around the world: In the US, productivity is slumping after witnessing a surge during pandemic lockdowns, although there remains no consensus thus far as to why this is occurring. 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But new studies have found that businesses and business leaders must adopt a \u201cproductivity\u201d rather than \u201cefficiency\u201d mindset if they want to remain in the game, Michael Mankins argues in a piece for HBR. \u201cContinuing to wring out\u2026","rel":"","context":"In "SOMETHING THAT MADE US THINK"","block_context":{"text":"SOMETHING THAT MADE US THINK","link":"https:\/\/enterpriseam.com\/egypt\/category\/something-that-made-us-think\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":646878,"url":"https:\/\/enterpriseam.com\/egypt\/2024\/10\/02\/is-rto-the-solution-to-every-workplace-problem\/","url_meta":{"origin":579671,"position":2},"title":"Is RTO the solution to every workplace problem?","author":"enterpriseam admin","date":"2 October 2024","format":false,"excerpt":"Higher-ups are longing for the pre-pandemic norm, and are filling up their offices as a fix for all the issues facing the workforce","rel":"","context":"In "FOR YOUR COMMUTE"","block_context":{"text":"FOR YOUR COMMUTE","link":"https:\/\/enterpriseam.com\/egypt\/category\/for-your-commute\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2024\/10\/211.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":605027,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/12\/19\/shorter-work-week-boosts-productivity-and-motivation\/","url_meta":{"origin":579671,"position":3},"title":"Shorter work week boosts productivity and motivation","author":"enterpriseam admin","date":"19 December 2018","format":false,"excerpt":"It\u2019s not rocket science: People who work a four-day week instead of five report more productivity, more motivation, and less burnout, reports Reuters. 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As the tech we use\u2026","rel":"","context":"In "Worth reading"","block_context":{"text":"Worth reading","link":"https:\/\/enterpriseam.com\/egypt\/category\/lifestyle\/worth-reading\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2018\/12\/783.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":669771,"url":"https:\/\/enterpriseam.com\/egypt\/2025\/08\/07\/hybrid-work-may-be-in-need-of-some-housekeeping\/","url_meta":{"origin":579671,"position":4},"title":"Hybrid work may be in need of some housekeeping","author":"enterpriseam admin","date":"7 August 2025","format":false,"excerpt":"Concerns over productivity and collaboration are rising, but there are ways to course-correct","rel":"","context":"In "FOR YOUR COMMUTE"","block_context":{"text":"FOR YOUR COMMUTE","link":"https:\/\/enterpriseam.com\/egypt\/category\/for-your-commute\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2025\/8\/467.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":673152,"url":"https:\/\/enterpriseam.com\/egypt\/2025\/10\/06\/digital-tool-fatigue-and-the-collapse-of-workplace-productivity\/","url_meta":{"origin":579671,"position":5},"title":"Digital tool fatigue and the collapse of workplace productivity","author":"enterpriseam admin","date":"6 October 2025","format":false,"excerpt":"Rather than enabling efficiency, these tools impede decision-making and execution","rel":"","context":"In "FOR YOUR COMMUTE"","block_context":{"text":"FOR YOUR COMMUTE","link":"https:\/\/enterpriseam.com\/egypt\/category\/for-your-commute\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2025\/10\/306.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/579671","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=579671"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/579671\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/afternoon\/579656"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/579672"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=579671"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=579671"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=579671"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=579671"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=579671"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}