labor productivity

Syllable breakdown

Dictionary meaning

the measure of economic output produced per unit of labour input, typically expressed as real gross domestic product per hour worked or per worker, serving as a fundamental indicator of an economy's efficiency and long-run capacity for wage growth, since real wages can sustainably rise only as fast as labour productivity allows; labour productivity is driven by the accumulation of physical capital, improvements in human capital through education and training, technological innovation, improvements in management and organisational practices, and the reallocation of labour from lower to higher productivity sectors; productivity growth has been the primary engine of rising living standards since the Industrial Revolution but has slowed markedly in many advanced economies since the 2000s