PRODUCTIVITY IN BIOECONOMY INDUSTRIES IN LATVIA

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Bioeconomy industries play an important role in contributing to national economies and a transition to climate-friendly farming practices. This is evidenced by various policies implemented, including the United Nations Sustainable Development Goals, the European Union (EU) Bioeconomy Strategy and the European Green Deal. The increasing productivity and new technologies can have negative environmental impacts, affecting the economic framework associated with ecosystem services. To address these challenges, coordination among various sectors, stakeholders and value chains is necessary, supporting cross-sectoral strategies; therefore, the government has adopted the Latvian Bioeconomy Strategy 2030. One of the complementary lines of action to achieve the goal of the bioeconomy strategy is �increasing the efficiency and labour productivity in all industries of the bioeconomy�. Accordingly, the present research aims to examine labour productivity in the national economy and in bioeconomy industries to contribute to the implementation of the Latvian Bioeconomy Strategy 2030. The research analyse the level of labour productivity achieved in Latvia and compare it with that in other EU Member States, as well as examine labour productivity in individual bioeconomy industries in Latvia in the period 2015-2022. Several indicators were used: labour productivity per person employed and per hour worked both in current prices and constant prices. The research found that in the period analysed, the highest productivity was achieved in section D Electricity, gas, steam and air conditioning supply, which significantly exceeded the national average, whereas it was significantly lower in the following sections: I Accommodation and food service activities, F Construction and A Agriculture, forestry and fishing, although significant productivity growth has been observed in the period 2015-2022. Therefore, it is necessary to continue implementing the measures begun to increase productivity in the areas where it is low.