5 December 2025

EEI tackles labour productivity gap between the US and the EU during its event in Brussels

The European Employers’ Institute (EEI) was pleased to welcome its members and stakeholders to a networking event held on 4 December 2025 in Brussels. The evening gathered representatives from EU institutions, European and national employers’ organisations, and research bodies for an in-depth exchange on Europe’s labour productivity performance and the policy challenges shaping competitiveness and growth.

The event opened with welcome remarks from Delphine Rudelli, Chair of the EEI Board and Director General of Ceemet, who emphasised the importance of reinforcing Europe’s economic foundations through informed policymaking and improved business conditions.

This introduction was followed by a presentation by Olivier Redoulès, Economist and Director of Studies at Rexecode, who outlined the findings of three recent EEI studies on the persistent and widening labour productivity gap between the EU and the United States. His analysis showed that the gap between the EU’s six original member states and the US has expanded markedly since the late 1990s, although more recent EU member states have partially converged from much lower starting points. He noted that the gap now spans all major sectors, with the largest absolute differences in Information & Communication, Financial Activities, and Manufacturing, and the largest relative gaps in Agriculture, Information & Communication, and Personal Services. Between 2019 and 2024, labour productivity rose nearly four times faster in the US than in the EU. Redoulès also highlighted several crises facing the EU during the past decades, including an industrial competitiveness shock, weaker private investment, a chronic innovation and digitalisation deficit, increased regulatory complexity, and labour market dynamics that have constrained productivity gains.

A panel discussion moderated by David Rose, Director at LACS Training, offered deeper reflections on the study’s findings and their implications for employers and policymakers. The panel featured Olivier Redoulès (Rexecode), Kerstin Hallsten (Chief Economist, Swedish Association of Industrial Employers), Jonas Fluchtmann (Labour Economist, OECD), and Francesco Corti (Member of the Cabinet of EVP Roxana Mînzatu). The conversation explored Europe’s structural challenges, gaps in innovation and investment, the effects of recent economic shocks, and the need for coordinated European action to restore competitiveness. Audience members engaged actively, raising questions on sector-specific impacts, labour market policy, and potential levers for boosting productivity.

The panel discussion concluded with closing remarks from Delphine Rudelli, who reaffirmed the EEI’s commitment to fostering evidence-based research among employers across Europe. A networking reception followed, offering participants an opportunity to exchange views and identify avenues for future collaboration.

Find out more about the EEI here: https://eei-institute.eu/

Read more about the third study in the Productivity series here.